You may have heard about the Patient Protection and Affordable Care Act on the news, but are you aware of how this legislation affects your tax return? One of the provisions the act put into place is a tax penalty for being uninsured. This penalty was introduced in 2014 and will be fully phased in by 2016. It will affect people who don’t possess one of the following forms of health coverage:
- Eligible employer-sponsored plans
- Government-sponsored plans (Medicare, Medicaid, etc.)
- Plans in the individual market
- Certain grandfathered group health plans and other coverage, as recognized by Health and Human Services (HHS) in coordination with the IRS
The penalty applies to anyone uninsured for more than three months in a filing year, and is determined in a variety of ways. You might get hit with a flat dollar amount, or you might have to calculate what you owe based on a monthly penalty amount. Your income will also affect how much you owe. If all of this sounds complicated—it is. But Taxation Solutions, Inc. is standing by to assist you. We’re Orlando’s choice for knowledgeable tax help. We can walk you through calculating your penalty for lacking health coverage, and we can also discuss any other ways in which the recent health care legislation impacts your tax filing. Call or e-mail us today to learn more!