AFFORDABLE CARE ACT & TAXES
The Affordable Care Act (also known as Obamacare) has begun, with the goal of improving health care by ensuring everyone in America has affordable health care coverage. Most Americans are required to have health insurance as of January 1, 2014 or face a tax penalty. In 2014, the penalties will start at 1% of your yearly income or $95 per person for the year, whichever is higher. The penalties will increase each year through 2016, and most likely beyond that. Liberty Tax can help you learn more about how your choice of health plans will affect your taxes. The ACA has the goal of helping to control the increasing cost of health care and establishing affordable health insurance options. Under the law, insurance companies must now cover people with pre-existing conditions, cannot drop your coverage if you get sick, cannot put lifetime or yearly limits on your coverage, and will have their rate increases regulated. Those who have enrolled in an insurance plan through the Health Insurance Marketplace and have had a change in their lives, such as an increase or decrease in income, a new job with health insurance benefits, or the birth of a child, could also experience a change in any premium tax credit they receive.
“This will also help them determine if you need to make changes to their health insurance to reduce their tax liability. It will also get them thinking about their insurance options for next year.”
Exemptions from the payment
You may qualify for an exemption from the penalty for not being insured if:
- You’re uninsured for less than 3 months of the year
- The lowest-priced coverage available to you would cost more than 8% of your household income
- You don’t have to file a tax return because your income is too low (Learn about the filing limit (PDF)
- You’re a member of a federally recognized tribe or eligible for services through an Indian Health Services provider
- You’re a member of a recognized health care sharing ministry
- You’re a member of a recognized religious sect with religious objections to insurance, including Social Security and Medicare
- You’re incarcerated (either detained or jailed), and not being held pending disposition of charges
- You’re not lawfully present in the U.S.
- You qualify for a hardship exemption
We are here to help you find the best Health Care plan for you and your love ones. Contact our ACA experts today and request a free quote. We work with different health insurance companies such as Blue Cross Blue Shield, United Health Care, Aetna Coventry, and Assurant Health. We want to help you find the information you need. Contact us today.