ACA Tax 101: How It Impacts Your 2014 Tax Return

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Jan. 14 (Bloomberg) -- Bill Cobb, president and CEO at H&R Block, explains the impact of the Affordable Care Act on your 2014 tax filing on Bloomberg Television’s “Bloomberg Surveillance.”

Customers tax bills this year?

It doesn't mean a lot for the tax bills this year.

However, when you do this year will impact you next year.

You need to know your status this year so that you get prepared.

The law of the land now is that you have to have health insurance or face a tax penalty going forward.

About one third of your customers are going to get some kind of subsidy, right?

What about the two thirds who may have to pay a penalty?

Are they going to be angry with you because they are not getting as much money back from the government?

I don't think so.

They realize that we are not buying or selling on this law.

We are just trying to interpret it.

But if they understand it?

No.

complete confusion out there.

It is not a subsidy.

It is an advanced tax credit.

You think of a subsidy like something you are going to be given -- that is what the government is calling in.

It has to be up against your actual income in 2014 when you do your 2014 taxes.

That is going to add to the confusion because a lot of people think that without the subsidy it is, if you will, free money.

P.j. o'rourke with us today.

He wrote "parliament of whores," the first cynical look at washington ever written in the united states of america.

Some say that you please our hatred for the irs -- police are hatred for the irs.

Is the iris a police force?

I don't get into the politics of this.

We stay right down the middle and we have to interpret the law and do that -- but the lies that we are using the irs to affect the affordable care act for people -- the law is that we are using the irs to affect the affordable care act for people who wish it would go away.

Seal team six for obamacare.

How does this legislation directly impact your business?

It directly impacts the business unit 2 ways.

One is tax returns.

The irs is going to be the agency that administers this law.

There are 40 text changes that are occurring because of this law.

We try to repair accurate tax returns and get a refund for our people.

Got to rip up the script and borrow one of tom's phrases.

P.j., to baby boomers fundamentally understand the affordable care act?

No, and the ones who signed up, they sat on their smartphone and it happened by accident, i swear.

The people who walked into h&r block's offices, are they for the most part from that generation or are they the younger folks, millenial's? -- we serve all sizes and shapes should be happy tax and health care review.

We would've will give this out to everybody who comes in this year.

-- we will give this out to everybody who comes in this year.

What we are ultimately about this year is providing an accurate tax return and adding people to maximize their refunds.

Thank you so much, bill.

Coming up on "bloomberg surveillance," is a 75 the new 55? how the aging population affects

This text has been automatically generated. It may not be 100% accurate.

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