This year, there are some changes to tax forms related to the Affordable Care Act. Along with a few new lines on existing forms, there will also be two new forms that will need to be included with some tax returns. While most taxpayers will simply need to check a box on their tax return to indicate they had health coverage for all of 2014, there are also new lines on Forms 1040, 1040A, and 1040EZ related to the health care law.

To help navigate these changes, taxpayers and their tax professionals should consider filing their return electronically. Using tax preparation software is the best and simplest way to file a complete and accurate tax return as it guides individuals and tax preparers through the process and does all the math. There are a variety of electronic filing options, including free volunteer assistance, IRSFree File for taxpayers who qualify, commercial software, and professional assistance.

Here is information about the new forms and updates to the existing forms:

Form 8965, Health Coverage Exemptions

• Complete this form to report a Marketplace-granted coverage exemption or claim an IRS-granted coverage exemption on the return.
• Use the worksheet in the Form 8965 Instructions to calculate the shared responsibility payment.

Form 8962, Premium Tax Credit

• Complete this form to reconcile advance payments of the premium tax credit, and to claim this credit on the tax return.

Additionally, if individuals purchased coverage through the Health Insurance Marketplace, they should receive Form 1095-A, Health Insurance Marketplace Statement, which will help complete Form 8962.

Form 1040

• Line 46: Enter advance payments of the premium tax credit that must be repaid
• Line 61: Report health coverage and enter individual shared responsibility payment
• Line 69: If eligible, claim net premium tax credit, which is the excess of allowed premium tax credit over advance credit payments

Form 1040A

• Line 29: Enter advance payments of the premium tax credit that must be repaid
• Line 38: Report health coverage and enter individual shared responsibility payment
• Line 45: If eligible, claim net premium tax credit, which is the excess of allowed premium tax credit over advance credit payments

Form 1040EZ

• Line 11: Report health coverage and enter individual shared responsibility payment
• Form 1040EZ cannot be used to report advance payments or to claim the premium tax credit

For more information about the Affordable Care Act and filing your 2014 income tax return visit IRS.gov/aca.

John Hewitt, the president, CEO and chairman of Liberty Tax Service, is anticipating increased business for preparers this tax season thanks to the Affordable Care Act and the boost in employment from the increasingly robust jobs market.

Hewitt founded Liberty Tax Service in 1996 after leaving Jackson Hewitt, another major tax prep chain that he co-founded back in 1982. He built them into the second and third largest tax prep chains in the country, right behind H&R Block, where he worked his way up from tax preparer to regional director.

Hewitt believes the ACA will make this one of the best tax seasons ever for  Liberty Tax Service.   “It’s the biggest tax change since 1986,” he told Accounting Today in an interview Thursday. “Tax change is one of the three primary drivers to people choosing to come in and get assisted preparation, and so it’s going to drive people from the capability of doing their own return into seeking assistance. In addition to that, more people are going to file, and also tax preparation fees in general are going to go up because of the additional complexity, and in this industry we charge on the complexity. So three major impacts: more people will file, a higher percentage of people will seek assistance, and thirdly the industry will get higher fees because of the increased complexity.”

On top of that, the increase in the employment numbers over the past year is likely to induce more taxpayers to seek help from preparers. “More people were put to work in 2014 than any year in the 21st century so that’s going to drive more people to file their return,” said Hewitt. “We think that about 3 million more people are going to file this year.” He anticipates over 60 percent of them will go to a tax preparer.

Immigration Impact
Next year will see a further influx of new taxpayers as President Obama’s executive action on immigration reform will prompt more undocumented immigrants to catch up on their back taxes to qualify for the amnesty, Hewitt predicts.

“One of the requirements to get amnesty is you have to prove that you’ve lived in the United States and you have to file tax returns,” he said. “So immediately there will be another 5 million people filing tax returns, and a larger than normal majority of them will seek assisted tax preparation, so it’s great for our industry and our company.”

Hewitt doesn’t anticipate that President Obama’s recent executive action will have a big impact until next year, though.

“I don’t think it’s going to have a major impact until you can file your paperwork to get this amnesty,” he said. “And that paperwork doesn’t look like it’s going to be available from the government for a couple of months. So I think the major impact is going to be in 2016, not 2015.”