Oct 21, 2017

IRS will decline tax returns without proof of health insurance

The IRS will reject tax returns filed without information about health insurance. Photo: Brennan Linsley / AP

The IRS said it will decline any tax returns submitted online if the filer does not fill out the forms about whether you have health insurance, per NYT. You could be denied your refund without this information.

Why it matters: The tax penalty for lack of health insurance has been controversial and this is the first time the IRS will enforce this rule. Also, it's a small sign that Trump's administration is keeping some parts of the Affordable Care Act alive, despite Trump's repeated claims that it's dead.

Think back: Trump's very first Executive Order suggested his admin could halt the tax penalty for insurance. And he has flip-flopped on health care numerous times this month alone. He rolled out another Executive Order earlier this month advocating for the sale of skinnier health plans to small businesses and individuals — on the same day that he announced he'd end subsidies for low-income people. And he changed his mind on the bipartisan proposal to provide "short-term stability to insurance marketplaces under the law," NYT notes.

Why now: The IRS wanted to assess the effects of Trump's EOs before rejecting returns without insurance information. Families can face up to $2,085 penalty and individuals could pay as much as $695 each year for the tax penalty without providing insurance information.

More tax news, from NYT: tax news, from NYT: Republicans are considering decreasing the amount individuals can contribute to 401(k) before taxes to help their tax reform plan.

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Gov. Tim Walz to mobilize Minnesota's full National Guard

Photo: Steel Brooks/Anadolu Agency via Getty Images

Minnesota Gov. Tim Walz announced on Saturday he is activating the full National Guard to respond to street violence in Minneapolis that broke out during protests of a police encounter that left a black man, George Floyd, dead.

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