Category Archives: IRS

IRS

IRS Tax Time Guide Released

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The IRS has put together a “Tax Time Guide” to help taxpayers navigate the various tools and resources they have available to them to answer tax questions.

Below are a few of the most common tax time queries and the tools to find answers:

Checking on a tax refund?

Taxpayers can easily find information about their refund by using the “Where’s My Refund?” tool. It’s available on IRS.gov and on the official IRS mobile app, IRS2Go. Refund information is normally available within 24 hours after the IRS receives a taxpayer’s e-filed return or four weeks after the IRS receives a mailed-in paper return. The system is updated daily, so there’s no need to check more often.

Need help preparing a tax return?

Through the Volunteer Income Tax Assistance and Tax Counseling for the Elderly (VITA/TCE) programs, eligible taxpayers can get help filing their return for free at one of several thousand community-based tax help sites. Sites are staffed by IRS trained and certified volunteers. Low- and moderate-income taxpayers and those age 60 and above can find the nearest site on IRS.gov’s VITA/TCE Site Locator.

Want a free do-it-yourself tax option?

The IRS Free File program, available at IRS.gov, offers 12 brand-name tax preparation software packages for free to the 70% of taxpayers who earned $64,000 or less in 2016. By answering questions in an interview format, the software does the work of finding deductions, credits and exemptions for which the taxpayer qualifies. For those earning more than $64,000 who are comfortable preparing their own taxes, IRS.gov offers Free File Fillable Forms. These are the electronic versions of paper IRS tax forms.

Need a tax return transcript?

For those who need a copy of their tax return, the IRS has an online tool to help. Transcripts are free and available for the most current tax year after the IRS has processed the return. Get Transcript provides online access to transcripts. Taxpayers can view, print or download their transcripts.

Need to make a payment?

IRS Direct Pay offers taxpayers the fastest and easiest way to pay what they owe. Available through the Pay Your Tax Bill icon on IRS.gov, this free online system allows individuals to securely pay their tax bills or make quarterly estimated tax payments directly from checking or savings accounts without fees or pre-registration. See IRS.gov/Payments for information on this and other payment options.

Can’t pay a tax bill?

For taxpayers concerned about a tax bill they can’t pay, the Online Payment Agreement tool can help determine if they qualify for a payment plan with the IRS. The Offer in Compromise Pre-Qualifier can help determine if a taxpayer qualifies for an offer in compromise. An Offer in Compromise is an agreement with the IRS that settles a person’s tax liability for less than the full amount owed.

Questions about an amended return?

The “Where’s My Amended Return?” tool provides the status of an amended tax return, Form 1040X. Taxpayers can check on the current year 1040X and up to three prior years. Allow up to three weeks after filing to check on the initial status, and up to 16 weeks for processing.

What about tax withholding?

The IRS Withholding Calculator helps employees make sure the amount of income tax taken out of their pay is neither too high nor too low. This tool can be particularly useful to taxpayers who, after filling out their tax returns, find that the refund or balance due was not what they expected.

Source: IRS Releases Tax Time Guide: Use IRS.gov Tools to Answer Tax Questions

IRS, Tips

For Tax Preparers: Forms 1095-B and 1095-C Not Required For Filing — Alternatives Are Acceptable

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I had a tough time getting 1095-B & 1095-C forms from clients last year in time for filing, as many of their health insurance providers were delayed in sending them out.  Unfortunately, late last year, the IRS decided to allow providers to file extensions again, and I was dreading the same experience.

So you can imagine that I was pretty pleased to read, in today’s National Association of Tax Professionals e-newsletter:

According to Question 14 on the IRS Health Care Information Forms FAQ, you do not have to wait for either Form 1095-B or 1095-C from your client’s coverage provider or employer to file the individual income tax return. You can use other forms of documentation in lieu of the Form 1095 information returns to prepare the tax return. Other forms of documentation that would provide proof of a taxpayer’s insurance coverage include:

  • Insurance cards.
  • Explanation of benefits statements from the insurer.
  • W-2 or payroll statements reflecting health insurance deductions.
  • Records of advance payments of the premium tax credit.
  • Other statements indicating that the family had health care coverage.

Of course, many of these documents will not confirm that insurance was for the entire year, or all members of the family, so it is still best practice to get the 1095-B or 1095-C.  But when it’s unobtainable, it shouldn’t delay your client’s filing — just make sure they provide it to you once they are able.

Source: Questions and Answers about Health Care Information Forms for Individuals (Forms 1095-A, 1095-B, and 1095-C)

IRS

IRS Puts ACA Coverage Requirement On Hold — But Taxpayers Must Still Follow the Law

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I’m seeing a lot of questions on my tax professional newsgroups and discussion boards about the so-called “silent return” provision that has made so much news lately, and I want to set the record straight here.

For this filing season, the IRS had put system changes in place “that would reject tax returns during processing in instances where the taxpayer didn’t provide information related to health coverage.”  (I.e., they were “silent” on the topic.)  However, due to an executive order, they have removed this barrier to filing.

From a recent IRS website post:

“Consistent with that, the IRS has decided to make changes that would continue to allow electronic and paper returns to be accepted for processing in instances where a taxpayer doesn’t indicate their coverage status.”

However — and herein lies the confusion — this does not mean the ACA laws have changed (yet).

“Legislative provisions of the ACA law are still in force until changed by the Congress, and taxpayers remain required to follow the law and pay what they may owe‎.”

What it does mean is (as with any other area in a return where a taxpayer or preparer enters information that is incorrect, or does not answer a required question), the IRS has every right to come back and inquire, request further information, or even audit.  If the taxpayer is found to be out of compliance with the law, then corrections, penalties and interest would be due.

“Processing silent returns means that taxpayer returns are not systemically rejected by the IRS at the time of filing, allowing the returns to be processed and minimizing burden on taxpayers, including those expecting a refund. When the IRS has questions about a tax return, taxpayers may receive follow-up questions and correspondence at a future date, after the filing process is completed‎.”

This is no different than how the same issue was handled last filing season: the requirement was there, but ignoring it did not prevent your return from being e-filed or processed.

“This is similar to how we handled this in previous years, and this reflects the normal IRS post-filing compliance procedures that we follow.”

In other words — if your client refused to answer whether they were required to file 1099s or not, you wouldn’t just leave the answer blank on the tax return; you’d make it clear to the client that this is required information.  It’s the same thing here.  Just because refusing to answer the question about health insurance coverage will no longer prohibit the return from being processed does not mean you do not have to answer the question.  You are simply inviting your client to be audited, which is doing them a disservice.

More here, from Accounting Today: IRS puts new regulations and ACA coverage requirement on hold

Education, IRS, Software

2/28/17 CCH Webinar on S-Corp Reasonable Compensation for Shareholder-Employees

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I’ve been meaning to write a blog post on S-Corp “reasonable compensation” — a hot audit topic at the IRS these days — for quite some time… in fact, ever since discovering my favorite app of the year, RCReports, which has been a real game-changer for my practice and my S-Corp clients.

(Note: RCReports has its own series of webinars, which I can personally recommend.)

However, being in the bowels of tax season, for now I’m just going to encourage you to attend this CCH webinar on the topic, coming up on Feb 28, 2017 at noon Central-time:

Learn how the IRS determines “reasonable” compensation for S corp shareholder-employees: in this two-hour CPE webinar, business taxation expert Eric Wallace, CPA, will look at the latest developments in this hot area of dispute between taxpayers and the IRS.Mr. Wallace will review the latest legal and regulatory developments and provide practical guidance.

Spread the word to your S-Corp clients and colleagues who work with them.

Source: CCH® Webinars: February 28, 2017 – S Corp Reasonable Compensation for Shareholder-Employees

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Avoid the Rush: IRS Online Options To Get What You Need

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Today, an important note from the IRS, with a page full of great links to help you obtain information and assistance specific to your needs.  Don’t get caught on-hold forever… take a moment to see if your request can be answered more efficiently.

First, I recommend you save this 2-page pdf guide somewhere useful, or print it out and pin it to your bulletin board — the IRS Services Guide is a succinct reference for where to go to find what you need.

For further resources, all of the below comes straight from the IRS at Avoid the Rush: Online Options Help You Avoid Presidents Day Rush.

Avoid the Rush: Online Resources

Refund Delays – By law, the IRS must hold Earned Income Tax Credit or the Additional Child Tax Credit refunds until Feb. 15. Taxpayers will begin to see refunds claiming EITC/ACTC the week of Feb. 27. “Where’s My Refund?” will update for EITC/ACTC refunds on Feb. 18 for the vast majority of early filers who claimed the Earned Income Tax Credit or the Additional Child Tax Credit. Before Feb. 18, some taxpayers may see a projected deposit date or an intermittent message that the IRS is processing their return.

Where’s My Refund? – You just need a little info from your tax return to track your refund.

Finding your Adjusted Gross Income – If you changed tax preparation software products this year, you may be asked for your adjusted gross income to help verify your identity. You must use the procedures outlined on IRS.gov for getting your AGI. We cannot provide you with your AGI if you call.

Letter 4883C – We take many steps to protect you from identity theft. If you receive Letter 4883C, it’s because we stopped a suspicious tax return. Before you call, be prepared to validate your identity. See Understanding Your 4883C Letter for details.

ITIN Renewal – If you have an expired Individual Tax Identification Number and need to file a tax return, there are new rules this year.

Get Transcript – You can view your tax transcript, a summary of your tax return, online or you can order it by mail. You may need this for non-tax reasons such as student or mortgage loan income verification. Or you may need it to find your adjusted gross income.

Appointment Service – We’re trying to eliminate the long lines at our office, especially at this time of year. You must make an appointment for most services at our Taxpayer Assistance Centers. Again, most questions can be answered at IRS.gov.

Free File – Do your taxes yourself, using free, brand-name software through the IRS Free File program. A dozen partners offer free federal tax prep, and in many cases free state as well,  to anyone earning $64,000 or less. Taxpayers earning more can use Free File Fillable Forms.

VITA/TCE – Need help doing your taxes? Find volunteer help near you through our Volunteer Income Tax Assistance program or AARP’s Tax Counseling for the Elderly.

Avoid the Rush: Keyword Search

Still can’t find what you’re looking for?

Use our search tool to track down your topic and get the answer at your fingertips. Or, try our Interactive Tax Assistant. This is similar to the tool used by our customer service representatives to answer your tax questions. Our Help and Resources page also contains valuable information.

Avoid the Rush: News Releases

IR-2017-32, Feb. 14, 2017, Avoid the Rush: Be Prepared to Validate Identity if Calling the IRS

IR-2017-30, Feb. 13, 2017, Avoid the Rush; Use IRS.gov for Quick Answers to Questions

Source: Avoid the Rush: Online Options Help You Avoid Presidents Day Rush

Education, IRS, QuickBooks Software, Tips

Self-Employed? Avoid These Common Tax Mistakes

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I recently had the pleasure of being asked by Hustle & Co to contribute to their blog post on common mistakes that freelancers and the self-employed tend to make regarding taxes.  My quotes in their article came from a longer version intended for my blog — and lucky day: you can now read the full version here.

What are common mistakes that freelancers or self-employed people tend to make when preparing for or filing taxes, and how can these mistakes be avoided?

The biggest mistake that self-employed people tend to make when preparing for taxes is that they don’t seek professional help. (I’m not saying this just because I’m a CPA; I’m saying it because I see the results of this mistake regularly.) To clarify, by “professional help”, I’m not suggesting you go to a big tax prep chain and hand in your shoebox of receipts at tax-time; I’m saying that involving an accountant in your business should be one of the first steps a freelancer takes, well before taxes are due. This doesn’t mean you can’t file your own taxes… but if you take the time to consult with an expert first, you’ll make way fewer mistakes when you do. A qualified accountant who specializes in your industry can help you with so many of the key issues that otherwise might come back to haunt you at tax-time:

1) Selection of the right type of entity: sole proprietor, single-member LLC, partnership, multi-member LLC, S-Corp, C-Corp, cooperative, not-for-profit, etc.
2) How to fund your business without tapping into retirement funds and paying a major tax-time penalty.
3) Setting up accounting software and tracking income and expenses properly.
4) Deciding whether to file taxes on the cash basis or accrual basis.
5) Understanding the home office deduction rules.
6) Sorting through the complexities of health insurance: what’s deductible and where; do you qualify for exemptions; how to minimize any penalty for lack of coverage.
7) Explaining the rules for what is deductible, and helping to identify commonly missed deductions such as travel, equipment, cell phone, meals & entertainment, dues & subscriptions, and mileage.
8) Demystifying and debunking what your “uncle’s friend’s lawyer” said you should do to save on your tax bill.

In other words, find an accountant who you feel comfortable with, ask them a million questions, and develop a relationship with them, involving them on your team.

The second-biggest mistake that self-employed people tend to make when preparing for taxes? Looking for an accountant during tax season. By that time, we’re all knee-deep in our existing clients’ needs, and most of us don’t have time to help you convert to QuickBooks or organize your receipts. If you haven’t found someone by tax time, then it might make sense to approach potential accountants with the suggestion that you’d like them to help you file an extension and get organized after tax season is over; you’re more likely to have good luck getting them to work with you.

As for mistakes that I see on a lot of prior-year tax returns that new clients bring me, here are some of the most common:
1) All income is taxable — not just the income that is reported on your 1099-MISC forms.
2) Speaking of 1099-MISC forms… double-check yours the moment they arrive and request corrections immediately. Don’t wait until April.
3) Keep a mileage log or recreate your mileage log from the last tax year based on calendar entries. The IRS does not allow vehicle mileage deductions without one.
4) Speaking of mileage — commuting is not deductible.
5) If you have inventory, count it at 12/31 or as close to it as you can. Even cash-basis taxpayers have to report inventory and cannot include it as a cost of sales.
6) Be careful deducting educational expenses. The IRS will not allow a deduction for education a) to meet minimum requirements of a job, nor b) that qualifies you for a new trade or business. They do, however, allow a deduction for education to “maintain or improve skills”.
7) Gifts to business clients, vendors and the like are only deductible up to $25 per person, per year. (Seriously — it was never indexed for inflation.)
8) Understand the rules of the entity type you chose. (For example, if you’re an S-Corp, pay yourself “reasonable compensation” via payroll; it’s the law.)
9) Depreciable basis on property does not include land. Ever. (If you own your own home and are claiming a home office deduction without using the safe harbor, this means you.)
10) Speaking of depreciation — it’s not optional. You can’t decide not to depreciate something just because you feel it’s too complicated. If the IRS audits you, they will reduce the basis of your property by the amount of the depreciation you should have taken, and you’ll pay gain on the disposal of your property without having had the benefit of the deduction. Sound complicated? (It is. Hire a professional.)

Education, IRS, Tips

IRS Warns Of W-2 Phishing Scam

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The IRS is warning taxpayers, business owners and tax preparers of a Dangerous W-2 Phishing Scam Evolving; Targeting Schools, Restaurants, Hospitals, Tribal Groups and Others.  If you are a victim of or inadvertently assisted in W-2 information theft, please contact the IRS at once, so they can protect the affected taxpayers from tax-related identity theft.

Tax preparers have additional responsibilities and should read this IRS info on what to do if you suffer a data breach of client information.

Here’s how the scam works: Cybercriminals use various spoofing techniques to disguise an email to make it appear as if it is from an organization executive. The email is sent to an employee in the payroll or human resources departments, requesting a list of all employees and their Forms W-2.

This phishing variation is known as a “spoofing” e-mail. It will contain, for example, the actual name of the company chief executive officer. The following are some of the details that may be contained in the emails:

  • Kindly send me the individual 2016 W-2 (PDF) and earnings summary of all W-2 of our company staff for a quick review.
  • Can you send me the updated list of employees with full details (Name, Social Security Number, Date of Birth, Home Address, Salary).
  • I want you to send me the list of W-2 copy of employees wage and tax statement for 2016, I need them in PDF file type, you can send it as an attachment. Kindly prepare the lists and email them to me asap.

In the latest twist, the cybercriminal follows up with an “executive” email to the payroll or comptroller and asks that a wire transfer also be made to a certain account. Although not tax-related, the wire transfer scam is being coupled with the W-2 scam email, and some companies have lost both employees’ W-2s and thousands of dollars due to wire transfers.

The IRS, states and tax industry urge all employers to share information with their payroll, finance and human resources employees about this W-2 and wire transfer scam. Employers should consider creating an internal policy, if one is lacking, on the distribution of employee W-2 information and conducting wire transfers.

Organizations receiving a W-2 scam email should forward it to phishing@irs.gov and place “W2 Scam” in the subject line. Organizations that receive the scams or fall victim to them should file a complaint with the Internet Crime Complaint Center (IC3,) operated by the Federal Bureau of Investigation.

Employees whose Forms W-2 have been stolen should review the recommended actions by the Federal Trade Commission at www.identitytheft.gov or the IRS at www.irs.gov/identitytheft.
Employees should file a Form 14039, Identity Theft Affidavit, if the employee’s own tax return rejects because of a duplicate Social Security number or if instructed to do so by the IRS.

The IRS also has a page offers all sorts of helpful security awareness tips for taxpayers as well as tax preparers.

Education, IRS, Tips

New Due Dates for Many Tax Returns in 2017

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The biggest news for 2017, in the world of tax preparers, came back in 2015, but didn’t make much of a splash outside of our world.

Lady Gaga: They’re changing the due dates for partnership returns, C-corps, and 1099s!

Nancy: THEY’RE CHANGING THE DUE DATES FOR PARTNERSHIP RETURNS, C-CORPS AND 1099S???

Lady Gaga: Yes, that’s what I said! Can you believe it?!!

Nancy: Aaaaaaaaaaaaauuuuuuuuuuuuugggggggggggggggggggaaaaaaaaaaaaaaggggggghhhhhhhhhhhhhhhhhhhhhh!

We were all a-flutter, but no one else really cared. From our perspective, having lobbied for it for so long, it’s seriously one of the most significant pieces of tax legislation for years. So I get that maybe this doesn’t seem like big news to non-tax-preparers, but for us, this is huge. The IRS never changes due dates. I mean, sure — you’ve got your weekends and totally random federal holidays (Emancipation Day, anyone?) here or there, but that just temporarily pushes things forward a day or two. We’re talking about a permanent change for all eternity. Or until the next time. As I said: THIS IS HUGE.

And it’s ultimately a good thing. But it is going to be a major challenge for us this season, so we’re asking you to be patient. And kind. (Please both.)

So what are these huge changes I’m going on about?

The main bits:
1) 1099s used to be due to recipients postmarked January 31, and e-filed with the IRS by March 31. The due date for recipients hasn’t changed, but now they’re due to be efiled with the IRS two months earlier, on January 31.
2) Partnerships used to be due April 15. They’re now due a month earlier, on March 15.
3) C-Corps used to be due March 15. They’re now due a month later, on April 15.

Why? And so what?

I’ll deal with the “why?” first.

The problem with the prior due dates was that it was hard for the IRS to match reported income against the income you said you had on your personal return, and sometimes, it was even hard for you to tell them about it in a timely fashion. For example —

1099s: you’re a freelancer (or more likely, a Chicago landlord) and you get your 1099s from clients (or renters) in early February. You decide to ignore it, because you didn’t really want to report that income anyway. You file in mid-February and get your refund. The IRS receives your 1099 copies on March 31. Now they have to chase you down for the refund that you weren’t entitled to. Make it due two months earlier — problem solved.

Partnerships: so you get a partnership K-1 sent out on April 15. This is a flow-through document that needs to show up on your personal return… ALSO DUE ON APRIL 15. That’s an easy one. Make it due a month earlier — problem solved.

C-Corps: the opposite of above. No flow-through documents. No reason to have it due a month early.

Taxpayers and preparers were struggling with problems created when flowthrough entities’ Schedules K-1 arrived late, sometimes within days (before or after) of the extended due date of their partners’/owners’ personal returns and up to a month after the extended due date of their partners’/owners’ business returns. Late Schedules K-1 made it difficult, if not impossible, to file a timely, accurate return. The Tax Division found that much of the issue related to late Schedules K-1 were a result of the increasing quantity and complexity of flowthrough entities.
Source — http://www.thetaxadviser.com/issues/2016/aug/nex-season-due-dates-have-new-logical-order.html

Much of the issue related to late Schedules K­1 were a result of the increasing quantity and complexity of flowthrough entities. The interconnection of business entities and those that own them demanded a more logical flow of information between parties.
Source — http://www.journalofaccountancy.com/newsletters/2015/oct/new-tax-return-due-date-changes.html

Now, the “so what?”

Well, I’ll tell you what.

1099s: DO YOU HAVE ANY IDEA HOW HARD IT IS TO GET W-9 INFO (what you need to file a 1099) FROM PEOPLE WHO DON’T WANT TO GIVE IT TO YOU??? DO YOU???

No, you probably don’t. But try owning a business or consulting with business owners, and you’ll find out fast. People are either actively trying to avoid taxation of income, or they are simply not super-responsible about reading emails and following up with requests. Either way, getting W-9 info from folks by the due date of January 31 is nearly freaking impossible. (Which is why I STRONGLY suggest that small business owners get W-9s before they give vendors their initial check. See my blog post on the topic, here.)

So. Someone doesn’t get their info to you on time and their 1099 goes out late. The only way you’ll be penalized for this is if THEY report it to the IRS. Now… why would they report it to the IRS if THEY are the ones who didn’t respond to the request for a W-9 in a timely manner? Yes, that’s my point. In effect, if someone were impeding your ability to send them a 1099, you really sort of had an extra two months to follow up and argue with them about it — or rather, provide a persuading picture of what will happen if they DON’T respond. Furthermore, let’s say you’re in the rare situation of having a recipient’s W-9 info in a timely fashion, and you send them their 1099 on time… and it’s wrong, and they notice it! You have time to go back and fix the 1099 before it even gets filed with the IRS.

No longer. Now you are required to e-file those 1099s with the IRS on the same day you put them in the mail to recipients. Not only are we going to see a lot of late-filed 1099s, but we’ll also see a lot of amendments. This is all going to increase the burden on accountants during a time of year when they’re already trying desperately to help close out client books (and in my case, implement new Point-Of-Sale systems for clients who end up making the transition in January; don’t ask).

Partnerships: Okay, I’ll admit, I really do like this new due date, in theory. I’ve often been delayed in filing a client’s personal tax return by lingering K-1s, or I’ve filed their return and a K-1 gets submitted after the return is filed. This is a great change, in theory.

But I’m a small business accountant, and I’m the only one in my firm that does taxes! NOW ALL MY S-CORPS AND PARTNERSHIPS ARE DUE ON THE SAME DAY!

I no longer get to take a 5-day vacation at the begining of February. I deal with 4th-quarter taxes in the first two weeks of January, 1099s all-month-long, and launch straight into tax prep before the end of the month. By March 15th, I will be a shell of my former self.

Send help.

C-Corps: Oh, yay. We get an extra month. I’m sorry… are there actually non-fiscal-year small businesses who file as C-Corps? I think I have two. Yeah, this does not help me at all.

In summary — I may die, but it’s okay. These changes are ultimately a good thing. They make sense. I just don’t know how we’re going to deal with them as a firm without my completely losing it.

RESOURCES:

LOVE this chart that summarizes many of the new due dates and compares them to the old ones; one-stop shopping —
http://www.aicpa.org/interestareas/tax/resources/compliance/downloadabledocuments/due-dates-summary-chart.pdf

http://www.journalofaccountancy.com/newsletters/2015/oct/new-tax-return-due-date-changes.html

http://www.thetaxadviser.com/issues/2016/aug/nex-season-due-dates-have-new-logical-order.html

IRS, Tips

Safe Harbor Relief for 1099/W-2 Filers Who Make Mistakes (It Happens)

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Great new ruling from the IRS — if you send out a 1099 or W-2 that turns out to be incorrect, but the amount is $100 or less ($25 or less for tax withholding), then you don’t have to amend it.

“Section 202 of the Protecting Americans from Tax Hikes Act of 2015 (P.L. 114-113) amended sections 6721 and 6722 to provide that an error on an information return or payee statement does not need to be corrected to avoid a penalty if the error relates to an incorrect dollar amount and differs from the correct amount by no more than $100 ($25 with respect to an amount of tax withheld).”

Education, IRS, Tips

Not All High-Deductible Health Insurance Plans Are HSA-Eligible

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I’m getting a lot of questions from clients right now about whether or not they should set up a Health Savings Account.  The answer — for most — is that it’s a moot question.  They probably aren’t eligible.

Just a high deductible isn’t enough. Health insurance plans must meet other criteria to become HSA-eligible.

As this article from The Finance Buff puts it, “a high-deductible health plan is not necessarily a High Deductible Health Plan” (HDHP): Not All High Deductible Plans Are HSA Eligible.

According to IRS Publication 969, to be an eligible individual and qualify for an HSA, you must meet the following requirements:

  • You must be covered under a high deductible health plan (HDHP) on the first day of the month.
  • You have no other health coverage.
  • You are not enrolled in Medicare.
  • You cannot be claimed as a dependent on someone else’s tax return.

The IRS defines a high deductible health plan as any plan with a deductible of at least $1,300 for an individual or $2,600 for a family, but as we just noted, not all plans that have a high deductible are eligible.  Value Penguin explains:

In actuality, few are HSA-eligible, because the IRS specifies—deep in its guidelines—that “except for preventive care, [the] plan may not provide benefits for any year until the deductible for that year is met.”

If you aren’t sure if your health insurance qualifies you for an HSA, call the insurer and ask. If you purchase a plan through the federal Marketplace, the answer should be in the plan information available through the exchange website.