FAQs

FAQs

QAre You Uncertain about how Health Care Reform Effects Your Taxes?
A

If you’re not sure what the new health care law means to you, you’re not alone. A poll by the Kaiser Family Foundation revealed that just over a third of the public had tried to find out more information about the law—the Affordable Care Act—in recent months. About half of the respondents to the survey said they remain confused about the law and its provisions.


If you have questions we can provide the answers you need. Among other things, our individual clients should be aware of the Shared Responsibility Provision. Under the provision, people of all ages, including children, must either have minimum essential health coverage, qualify for an exemption or make a payment when they file their tax return this year. We can help you understand whether your coverage meets the law’s requirements, how gaps in coverage will be treated and what circumstances qualify for an exemption. Purchasing a service with ProxyTax is purchasing our expertise.

QCan I Deduct My Charitable Donations?
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Many people make donations to charities whose work they support, but if you are planning to take a tax deduction for your gift, you must have the proper paperwork. Assembling the right documentation can also be tricky because the requirements vary based on whether the donation is cash and on the value of your gift. If you donate less than $250 in cash, for example, a canceled check, credit card statement or similar record may be sufficient, but if you give more, you will need a written acknowledgement from the charity. An additional tax form—and possibly an appraisal—may be needed for non-cash donations, depending on their value. Of course, the organization itself must also qualify as a charity under IRS rules.


We work with you to make it possible for you to fund the causes you believe in and qualify for the deductions you deserve.

QDo I Qualify for the Health Care Premium Tax Credit?
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Individuals and families can buy private health insurance through Affordable Insurance Exchanges, which are marketplaces where individuals can find private health insurance. (This is a new program created by the Affordable Care Act.) If you purchase health insurance through an exchange, you may be eligible for a tax credit that will make your coverage more affordable.


The credit is aimed at middle-income individuals and families. A larger credit is available for older individuals whose coverage costs may be higher. The credit will be refundable, which means it can be used by people who pay little or no federal income tax. You can arrange for the credit to be paid to your insurer in advance so that you have little or no out-of-pocket costs. Are you eligible for the credit? We understand can help you find out and work with you to make the best use of your health insurance dollars. And we don't charge you extra to apply for it. Now that's convenient.

QHow Do I Know if My Charitable Contributions Can be Applied to A Tax Year?
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If you’re planning to make some charitable contributions at holiday time, there are some things you should keep in mind if you plan to deduct your donation. If you mailed a check or charged a donation by Dec. 31, you can deduct your contribution on this year’s return (a cash donation counts, too, of course). The IRS requires that you keep a record of your donation, so be sure to keep receipts, statements or copies of cancelled checks. Also, confirm that the IRS considers your charity to be a qualified tax-exempt organization. If it isn’t, your donation will not be deductible. Also, some groups choose names that sound very much like well-known charities, so double check before you donate to be sure your money is going to the right place.


Do you have questions about the best ways to make the most of your charitable giving and about the tax rules for contributions?

QI'm in the Military, Does ProxyTax still work for me?
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Just because you're on the move, doesn't mean your tax accountant needs to be as well. ProxyTax services are available to you for use throughout the world. We understand that your service sometimes limits time with your friends and family. Don't waste time struggling through preparing a tax return. Our service serves you, so you can serve us. Thank you.

QMy employer just provided ProxyTax as a benefit. How do I take advantage of it?
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Congratulations! Your HR department has been provided an organization-specific code for you to use at checkout.

QWhat does ProxyTax do for me if I'm audited?
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We've got you covered. Read more here.