Another Tax year with TaxAct

TaxAct has been sending notices since October for specials on their Deluxe Edition software which most people don't need. The Free Edition works fine for most unless you owe money, earn over $58,000 or have a State Tax return. What they didn't tell you is the only software available for download was the 2008 version. Me thinking they'd forgotten to rename it, went through the whole application only to find it could not be excepted because of the date.

Notices since December

Don't download 2008 for 2013

Asking tech support I only got the answer that the IRS is not excepting returns until after the 31st which is incorrect.   They never said 2008 software would not work for 2013 but that is what they were offering.  I went back last Friday and they had the 2013 package available and I breezed through it like I have the last two years.  It's true that the IRS is not processing returns until February but it is accepting early submissions .... so said my acceptance notice. 

The lack of an answer almost had me headed for Taxslayer.com, the other recommended free to use software for taxes.  Like I've said before, TurboTax cost me what a live human tax consultant costs just because I have multiple incomes no matter how small.   The H&R Block solution is for people that need online help.

Here is the IRS Free File page to let you make your own decision for software.  Income below $58,000: Free File Software

So now it's off to pay yearly property taxes and the city water.

Expats and Obama Care

It's becoming a topic of conversation again on Expat message boards since the Open Enrollment medical care programs open October 1st.   It clearly says on the Healthcare.gov website that Expats are exempt but gives no details on how to prove you live outside the US.   I even did a Live Chat on that site and the question was beyond her ability to answer.   I offered my email for a reply from a specialist but they can only reply by phone.   I somehow don't expect to get that call.

Healthcare.gov is the National site but when you tell them what State you are "from" (IRS info) then you will most likely be sent to a State program site.  At least that's true for WA, OR and CA so I may have to deal with wahealthplanfinder.org.  I'm assuming these sites are only for people with no medical coverage or for those that want to shop for a cheaper solution.   People who are covered by an employer or have personal coverage probably shouldn't bother.

So we get back to how do your prove you live outside the US and to whom.   Since the only agency that can extract the penalty fees is the IRS then I guess we'll deal with them.   Problem there is to be an Expat the IRS says you should have a "Tax Home" other than the US or monthly proof you are outside the country.   The IRS site also says nothing about medical care penalties yet (I'll check further) so this is starting to sound what INM and Aduana went through when the Immigration laws changed.  Maybe they will work out something less convoluted in the future.

The enrollment period starts in October and ends in March and if you miss that period you have to wait for the 2015 signup.   The fee/fine for not having insurance in 2014 is 1% of your yearly income or $95 per person for the year, whichever is higher. The fee increases every year. In 2016 it is 2.5% of income or $695 per person, whichever is higher.   Pay that fee and you are still not covered.

What do I find searching for IRS and Obama Care but an article that last month The House passed a bill that blocks the IRS from enforcing Obama Care.   The plot thickens.

House votes 232-185 to block the IRS from enforcing ObamaCare

The House voted Friday to prevent the IRS from enforcing any aspect of ObamaCare, a bill meant to exact revenge against an agency that Republicans say is incapable of neutral enforcement of the law.

Members approved the Keep the IRS Off Your Health Care Act in a 232-185 vote. Four Democrats supported the bill along with every Republican.

E-File Taxes

I'm more and more amazed at what you can do over the Internet and I just did my taxes online today.  The IRS website has tons of good info if you know what you are looking for; like: how to get an E-File PIN from them and a list of free or inexpensive websites/software to use.   I checked a few of their recommendations, read reviews and decided to try TaxACT.   Very happy with them so far and the website said my form was accepted by the IRS but don't have the final results.   They did have a bunch of bad reviews but it seemed to work well for me.

TaxAct had all the forms you could possibly need right from the start.   When I tried Turbo Tax last year everything was extra .... like multiple income sources and small business income.  I would have paid Turbo Tax what I pay my tax man in person.   TaxACT has down loadable software and an online version but I downloaded so I wouldn't have to be online for the 3+ hours it took me.

I suggest you have your previous years tax form in front of you to check consistency, know last years adjusted gross income and last years PIN number.   Of course you need your 1099's but most all should be available online.  Not much of a rebate this year due to IRA withdrawals to build the house .... but did get a small one and it was free !!

TaxACT Website

IRS E-File page