Health Care Health Care Reform and Your Taxes Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by TurboTaxLisa Published Sep 30, 2013 - [Updated Oct 4, 2013] 2 min read Lately you may be hearing buzz about health care reform, Affordable Care Act, or Obamacare on the news. These are the unofficial names for The Patient Protection and Affordable Care Act, a national health care plan signed into law by President Obama that aims to provide the majority of Americans with access to affordable health care. Not sure what this new health care law is or if it changes anything for you and your family? Don’t worry, TurboTax has you covered. Here are the facts straight from our experts. The Affordable Care Act requires that all Americans (with a few exceptions) have health insurance starting in 2014. If you have health insurance, you’re all set. 80% of Americans already have health insurance through their employer, Medicaid, Medicare, or individual insurance and are already in compliance with the new law. If you fall into this bucket, you don’t need to do anything. You’re all set. If you’re uninsured, you can shop for health insurance in the online Health Insurance Marketplace. The Marketplace, which opens October 1, 2013, helps you compare your health insurance coverage options and costs. You have until March 31, 2014 to purchase health insurance through the marketplace. If you choose not to, you could face a health care tax penalty on your 2014 tax return (the one you file in 2015). You may be eligible for financial assistance to help cover insurance cost. If you purchase your health insurance through the online health insurance marketplace or exchange, you may be eligible for a government subsidy in the form of a tax credit. Unlike most tax credits, you will not have to wait to receive the tax credit or subsidy; it will be applied to your insurance in 2014 when your coverage begins. When it comes to the new health care law, TurboTax has you covered. The requirement to purchase health insurance does NOT impact your 2013 tax return (the one you file in 2014). TurboTax is up to date with all the latest tax and health care laws so you can be confident that your taxes are done right with TurboTax. Still have questions about how the new health care law impacts you and your family? TurboTax AnswerXchange will give you answers to your personal healthcare questions. Just answer a few simple questions and it will tell you how the new law impacts you and whether you’re eligible for financial assistance, so that you can make the best choice for your health care needs and budget. To find out more about the Affordable Care Act, or Obamacare, you can also watch our video. Previous Post TurboTax AnswerXchange Gives You Personalized Answers to Your Affordable Care… Next Post Health Insurance Marketplace Opens Today! Written by Lisa Greene-Lewis Lisa has over 20 years of experience in tax preparation. Her success is attributed to being able to interpret tax laws and help clients better understand them. She has held positions as a public auditor, controller, and operations manager. Lisa has appeared on the Steve Harvey Show, the Ellen Show, and major news broadcast to break down tax laws and help taxpayers understand what tax laws mean to them. For Lisa, getting timely and accurate information out to taxpayers to help them keep more of their money is paramount. More from Lisa Greene-Lewis Follow Lisa Greene-Lewis on Twitter. 1,052 responses to “Health Care Reform and Your Taxes” « Older Comments Newer Comments » How can u find out about if u can get help with paying insurance Low rates. I am single mom with 2 kids not making 15,000 a year. ? Reply The best place to get that information is your state’s Marketplace. With your low income and your family size, you should qualify for fully subsidized insurance. Reply mi live in Arizona and I need medication . I am unemployed . please help me Reply Your marketplace is http://www.healthcare.gov. You can apply for assistance there. They have free insurance as well as low cost insurance, and certain government benefits for paying for insurance and medical bills are only available if you get your insurance from the Marketplace. Reply I have health insurance through my employer. The question is on my daughter. Her father is required to carry her health insurance however he has been known to let it drop with out letting me know. I claim her on my taxes. Do I get fined if he lets her insurance drop. I have tried to get it to where I carry her insurance but the court would not let me because he said he would. Reply Yes, you will be fined if your daughter does not have insurance, because you claim her as a dependent on your tax return. Reply What about students who are living and studying in a foreign country and who have insurance in the country they are residing? Reply Do I have to pay a fine if I just get catastrophic insurance from an independent carrier and don’t buy from an exchange. Reply If your insurance does not meet the minimum standards, you will have to pay a penalty. Reply I’m retired and the company I worked for pays 25% of my monthly premium and I pay 75% of the monthly premium. That 75% I pay totals around $10,000.00. a year. This is the only plan offered by my company and we plan on continuing on this plan till age 65. I was wondering if my wife and I may receive any tax credits on our 2013 or 2014 tax filing based on the percentage of our income paid for health coverage. Reply If your company does it’s homework, it can offer you a cafeteria plan where health insurance is offered at a certain percentage. Yours is at 25% now. The amount you pay that is deducted from your paycheck can be deducted before taxes. So you don’t pay taxes on that amount. That is how my company does it. Reply my understanding from our Health Ins broker, the law states you do not pay more than 9.5% of your earned income for coverage.(assets not part of the equation) If the employer ‘charges’ more out of your pay than 9.5% you can shop on the Marketplace/exchanges. Reply The tax credits are only available for policies purchased through the state Marketplace. Reply If I purchase insurance thru the marketplace and receive a subsidy of a portion of the premium, will that subsidy amount be taxable when I file taxes in 2015 for tax year 2014? Reply The subsidy is not taxable, but if you understate your income for the year, and your subsidy was too great, you could have to repay some of it. Likewise, if you overstate your income, and didn’t receive all of your subsidy, it will be refunded on your tax return. Reply This is a huge compilation of angles on what is happening with the ACA. And when it comes to taxes, I understand everyone is really only interested in their own money, their own pocket, their own lives. But we are part of a whole, as a society, and have to consider ourselves as such, and being that as it is, we are responsible for taking care of our own health; because it DIRECTLY affects others. In theory, if we all take care of our own health, the health of society in general, improves. Currently, the health of our country is not very good. That’s an undeniable fact. I have yet to see that point enter the conversation here or anywhere else, when discussing healthcare, health insurance, and taxes for such. If we as a nation want better roads, we can’t (or won’t) fix them with our own hands, so we pay, with taxes, to have them improved. You want to be in better health, right? And so, as a nation we want better health… Reply Keep your opinion as your own. (We is a huge assumption) and I don’t believe your single opinion speaks for the majority of America. What good of a nation are we, if we are financially in the dump? I am not of the ethical or moral position, that I believe, I have to sacrifice my wealth so that another can benefit. You can only redistribute so much…until it’s all gone! Reply It’s not a declared opinion, it’s a practice in logic. I haven’t imposed or assumed anything. It’s a simple matter of taking care of our own health, not paying (either out of pocket or via taxes) for the health of others. Take care of your own health, then you eventually don’t have to pay for others. Do with your wealth as you will, that’s a right for us all. My only point is, I think the majority of America wants to be healthy. I could be wrong, but I think they do. I do not have heath care and need it badly a low cost heath Care Americn great ideal. Is it a bad thing for company to compent for our dollars. Also with some company that make is sick why not have heath care. Reply Hello, I was wondering. Through my 1199 union, I only get hospitalization insurance because I am only part-time. Does that meet the requirements ? Reply Live in the State of Oregon…Son (29 ) as been unemployed since 2009. I claim him as a dependent as he lives in my house and provide 100% of his needs (food, clothing, etc.). He is not eligible for OHP as he is neither pregnant or a minor. Per the state he still will not qualify for OHP. Are there options for this type of situation or does he continous to fall into what apparently is a black hole in the system? Reply Hi, You son should be able to purchase a policy on Cover Oregon at http://coveroregon.com/ For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply Hi Lisa. What will be the tax consequences and the changes to turbo tax for tax year 2014 that we will be filing in early 2015? Details please. thanks. jh Reply Thanks Lisa for the information. First of all, you will NOT be penalized until you are actually in the situation that you would need H.I. If this info is correct, Lisa, then you are saying that for NOT spending the tax money that we the people are paying, we will be penalized on it. This seems like a skewed plan drawn up to build monetary sustainability….for the government. I hope people understand why the “government shutdown” isn’t so bad 🙂 Reply I only have child support and no income of my own. I am unemployed and am a part time student. I have no insurance and just pay as I get billed from any doctors when I go , which is rare. Since I have no income of my own will I have to purchase insurance? Reply Hi Betty, If you don’t have any income you will not be required to purchase health insurance. If you earn under the IRS income requirement for filing a tax return (about $10,000) you are exempt. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply What if you have a 28 year old unemployed family member that you support 100% and claim as a deduction when I file my taxes. Will I have to pay the penalty for him not having any health insurance? No, you won’t have to pay for a dime of it! My tax dollars that I work for will support you!! Reply you will most likely qualify for Medicaid/ state health insurance since you have no income. and now you are required to obtain that. The whole idea of this is to cover those who have NO or limited income so you get the care needed and hospitals don’t have to write off your visit to the hospital. Reply What the hell does me getting sick or my son splitting his head open have to do with taxes? And why are we forced to pay for something we may not use? This is one MAJOR SCAM! Reply I would think if you became ill or your kid splits his head and you don’t have insurance, you may not be able to pay the bill if it’s thousands of dollars. *You may be able to. but some may not. Then the hospital has to suck up the expense and it seems like hospital/doctors cost would go up to keep compensating for those that cannot pay the bill. Not really fair for those who do have insurance. Just my thought. Reply Oh and deductibles for the grandiose healthcare that the potus exempted himself, family, congress, unions, Muslims from are out of this world. $762 a month with a $12,316 predictable. Yeah that’s real affordable…Not! Reply um it doesn’t. Reply I have VA benefits, am I still required to purchase insurance? Reply Hi Lynn, If you already have health insurance through the VA, you are not required to purchase health insurance. For more answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply My son (31) and granddaughter (4) are currently insured by NH Medicaid. Do they need to purchase additional insurance? Reply Hi Debbie G, If they already have Medicaid, they don’t need to purchase additional insurance. For more answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply I thought the AFA was to help those needy Americans that can’t get insurance, or afford insurance, but according to the information I am reading, if you make less than $10k per year, you aren’t even required to purchase health insurance? Now who is this supposed to help? Aside from one comment on this entire thread, the only information that I am gleaning is that this act is going to hurt a whole lot of people and make health insurance MORE expensive!!!! Oh, not to mention that congress is eligible for a 72% subsidy to purchase through the marketplace. Gotta love this administration. Such a caring, freedom loving, group of people. Not! Reply My son is in almost in the same boat – lost his group insurance in 2009 and hasn’t worked since and has a pre-existing condition. He cannot get medicaid and has zero income. He will not qualify for any help from the ACA. So how will he be insured????? Reply He will qualify now under the law. if you make below a certain amount you don’t qualify on the exchange because technically you qualify for medicaid BUT you don’t actually qualify for Medicaid if you own more than $2000 in assets? i guess this is their way of forcing you sell off all your assets to pay for insurance and then once you are flat out broke they’ll give you medicaid. Is this the official answre? Reply http://www.consumerreports.org/cro/2013/03/download-our-free-guides-to-health-care-reform-and-medicare/index.htm Thanks for the information David Wooster. It is very hard to hear this kind of law passing specially in a situation that my family is going through at the moment. I have 3 small boys to support that are 2, 3 and the older one is 5 so just imagine! It is hard times for me as the dad that hasn’t found a job due to lack of education. Well I know God will help,supply and provide the means for our crisis at the moment… If you make less than $10k, you can enroll in medicaid, so you don’t need to “purchase” anything. I’m 26 and will be saving 33-45% on my health insurance per month next year. Depending on the plan I choose. Reply I am permanently disable and do not qualify for medicare for 24 months. You can apply for medicaid but you are limited on what you own such as a house or vehicle. Also, you are limited as to how much you have in savings. I own two vehicles: a 1991 toyota with 300,000 miles and a 2001 PT cruiser with 100,000 miles. This disaqualified me from medicaid. Since you are available for Medicaid you have to get your health insurance from Department of Human services. Reply Agree! Reply ” not required to purchase insurance”, not quite accurate. You must HAVE it/obtain it. If cant afford it, the State will pay for it for you.( under the 10k income level) Thus you aren’t writing a check to purchase, but the State will cover it for you instead. Reply The marketplace will determine if you are eligible for Medicare or Medicaid and sign you up. Remember politics, if you are worried you will spend less money and the economy slumps making the other party look bad. This will add up to a savings for American taxpayers within about 10 years. Our right to affordable healthcare and not to be treated like cheap disposable labor is involved with our rights to life and liberty. My mother died because she was self-employed and made too much and too little for preventative care and cancer treatments. This insurance would have saved her life but like many people she felt invincible to illness and gambled with her life and lost. This is a historic moment for equality of the working class vs. management. Congress gets a subsidy as part of there service to the government. Reply Hi Lisa, I’m a dual citizen, have a home in the US and in a different country. I work for a company in the US but live most of my life (thanks to telecommuting) in the other country. A healthcare plan in the US would not benefit me since I basically don’t reside there. Is there an exception for me out there that would allow me to not have to get the insurance plan? Thanks, Daniel Reply Hi Daniel, Yes, if you live overseas, you do not have to purchase health insurance. For more answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply Wake up ! with the AFCA if your mother was over 75 she would not have gotten treatment anyway .Artilcles 55 -58 . Reply I have a question it seems I can’t get a definitive answer to, I am a single father who is supposed to get child support/partial insurance from my ex, unfortunately I don’t receive either and I’m stuck with insurance through my company which totals about $5300.00/yr, plus whatever copays and prescriptions, I have two teenage daughters, so it totals well over $6k/yr, can I write any of this or all off on my taxes? Reply Hi Tony, Yes, if you itemize your tax deductions (file schedule A), you can write off medical expenses as long as they’re more than 10% (7.5% for 65 or older) of your adjusted gross income. So for example, if your income is $50,000, you can deduct medical expenses more than $5,000 ($50,000 x 10%). Thank you, Lisa Greene-Lewis Reply Lisa – It looks like Tony is paying his premiums through his job (it doesn’t sound like he’s self-employed) so his premiums are deducted from his paycheck. If that is the case, his premiums would not be able to write off the premiums on his tax return. Bryan is right, and we are being fed a script from a 2-3 page notebook on the topic. My 28 year old daughter was insured until this week through her employer. She is now working part time and therefore is no longer insured. She’s attending the university full time and had to cut back on work in order to go to school and have enough time to study. She checked on the insurance through the university but she can’t afford 2400 Dollars a year. What is her best option? Reply I appreciate the information, doesn’t make me feel any better about it. Instead of saying the government will help subsidize these premiums, why not say who really covers this funding…….The Tax Payer! I honestly think there are those out there who think the government is giving them something…..it’s not…..it’s hard working people having more of their hard earned money being taken out of their pockets. Reply AMEN Tracy!! That is the misconception most people have! They think that “Our Government” has some kind of magical bank account that all this “FREE MONEY” is kept in. Wake up people!! This is Obama and the Democrats “spreading the wealth” theory!! I go to work everyday, have to submit to random drug testing, pay outrageous taxes and healthcare premiums, contribute to Social Security (which I’ll never see a penny of!!) Medicare etc…. Just to pay for those of you wanting everything for free!!! Reply um, the ‘tax payer’ pays for everything in this country. That is how it’s ran. If someone goes to the ER and doesn’t pay the bill, tax payer$ are used and costs go up . Now, those paying premiums( either employers or the employee), that money helps pay premiums for those who cant pay premiums. Same concept, different method. Reply I have had my own individual health insurance plan for many years and according to this article I’m all set and don’t need to do anything, however, I just got a notice from my health insurance company saying that my current plan WILL END on the last day of the year and I will need to go to the marketplace and select a new plan. I don’t understand the apparent contradiction. Reply Hi John, If you already have health insurance you don’t need to do anything, but if your plan ends and they are not offering an opportunity to enroll again then you would need to purchase insurance in the Marketplace. For more answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply My daughter does not have a job and cannot afford healthcare, she lives in MA how does she go about getting help with this? Reply Hi Erika, Your daughter should check out the Marketplace for your state. She will find all the options she qualifies for there. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply its all a rip-off Reply She should start by going to healthcare.gov and enter her state. It will direct you from there. Reply My 27 year old son is unemployed and has no income. He is no longer covered by my insurance and has none of his own. He has no income and no assets and is living in my basement, I currently claim him as a dependent since I fully support him. Will he be required to purchase insurance, and if he doesn’t what are the ramifications? Reply What if you moved out of the country in August of 2013 and plan on returning August 14th? How will these dates affect the law? Surely I don’t have to have health insurance if I am living outside of the United States in order to not get he tax penalty do I? Reply Hi Sean, Did you mean returning August 2014? You are not required to have health insurance until 2014. If you live outside the US you are not required to have health insurance. Once you return, you would need to have health insurance. If you have a gap in coverage of less than 3 months you will not receive a penalty. For more answers to your specific health care questions, visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply SHUT THE MUSIC OFF WHILE SHE TALKS Reply Do we get charged more if we decline getting insurance for a dependent even though I get insurance through my employer Reply Hi Cindy, Yes, you will receive a penalty for not insuring your dependents in your household even if you have employer provided health insurance. In 2014 the penalty for children is $47.50 per child. Children under the age of 19 may qualify for Children’s Health Insurance Program (CHIP) or be covered under a family plan through your employer up to age 26, if your employer plan offers dependent coverage. They may also be eligible for coverage through the state exchange marketplace. https://www.healthcare.gov/are-my-children-eligible-for-chip/ For more answers to your specific health care questions go to TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply But part A only covers inpatient hospital stays. Nothing outpatient. Therefore she would be classified as not insured to a dr office because that is outpatient. Reply I have a friend that’s let’s me stay at his house for free as I’m not working and have no income. Do I have to put his income in my application? He’s totally separate from me except I stay rent free in his spare room. Thanks Reply Hi AJ, No, you would only include his income if you claimed him as a dependent. If you do not have any income you are not required to purchase health insurance under the Affordable Care Act. Please visit TurboTaxAnswerXchange.com to see more answers to your specific health care questions. Thank you, Lisa Greene-Lewis Reply I am covered by my gay spouse but can not afford to pay the premiums. I am not working and can not. Can I qualify for cheaper coverage. He pays almost 700 per month for me now. I’m 62 Reply Hi Larry, If you are a legally married same-sex couple, you will now be required to file your taxes as married. If that is the case, you can try to find cheaper health insurance in the marketplace, you just have to remember you will have to include your spouses income when you apply for health insurance. For more answers to your specific health care questions, visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply vidio was informative – background music was a distraction. Reply What they forgot is what if your employer offers insurance but you can not afford to pay for it. That’s where I am at. I can pay for mine but it will cost me an extra $400 a month to insure my son. I am low income and can not afford this. Reply If your company offers insurance you do not qualify for a subsidy. This is not Fair!!! You do qualify for a subsidy if your out of pocket premiums are too high. I would talk to a local representative who signs people up if you can qualify. It depend on your total income and how much out of pocket your premiums are. Two of my adult daughters are divorced with very low incomes. I am paying for their individual medical insurance at this time which is very expensive to me. Are they eligible to sign up for insurance with one of the exchanges even though they have insurance.. Reply Please do your research and look for facts. It not as simple as “yes” or “no”, as there is many variables. If you live in CA 1-800-300-1506 or http://www.coveredca.com. They will answer all questions an answer quickly. If you do not live in CA you can us the website for general information. Reply I am on SS , I have Medtcare part “A”, How much is my fine going to be. Reply They say the first year wi be $95 then it will increase annually after that Reply 1% of you income or whichever is is higher Talk to your local nonprofit representatives who sign people up. If you can’t afford insurance and you live in a state that is expanding medicaid coverage, you may now be leigible for this. Reply Hi there, My family of 5 receives health insurance through my husband’s work, however his employer sent us something that says we may qualify for health care insurance through the Exchange. Is this true? We currently have a $2 K deductible and pay about $300 in monthly premiums. Because our combined income is about $40K is it likely that we would qualify for a subsidy and it would be cheaper than what his employer offers? Reply I was under the impression that if you have employer coverage , u can not get insurance from the exchange, unless his company doesn’t offer anyone in te company insurance anymore. Reply Hi Rebecca, If you have employer provided insurance you can shop in the Marketplace, however you may not get assistance. The only way you can get assistance is if your employer does not provide “affordable coverage” (employee’s share is greater than 9.5% of annual household income) and the insurance does not meet “minimum value”(employer provided coverage does not pay at least 60% of the total cost of medical services). For more answers to you specific health care questions, visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis You are in the same situation I am in. If your company offers insurance you do not qualify for a subsidy. I make 27 thousand with insurance and it will cost me $400 extra to insure my son. I can not afford this. Not Affordable!!! Reply If you have employee coverage you may be eligible if your premiums are over 9.5% of your income with certain tax deductions included. Check with a local rep on health exchange to find out. Many states have nonprofit health groups helping people figure things out. Reply I have heard that if my employer pays for my health insurance (or pays for a portion of it), the amount they pay is now considered to be compensation I am receiving, and is tax deductible? Is this correct? Reply Are premiums for long term care insurance deductible along with regular health care premiums? Also, can you deduct Part B premiums for medicare? Reply I have insurance through my employer, but can’t afford what they charge for the kids, will the $95 penalty apply towards them. I’m trying to get them back on the low cost insurance through the state (Nevada), but had problems since my daughter is only 5. I have to go back & re-apply for all the kids again. Reply I am shopping for health insurance on my state’s (WA) insurance exchange, and when the premium amount is listed, it is giving me the full price for the premium. I am currently making less than 200% of the federal poverty level, and as far as I can tell, have no other reasons that disqualify me from receiving the subsidy. So I’m wondering, how does the subsidy work? Is it automatically calculated into the cost of my premium, causing me to pay the lower amount, or is it returned with the tax return? Reply Speak to a local health exchange rep. My sister’s family qualify for a family of 4 and they make about 55,000. Reply Already have ins thru my employer so I heard if I would happen to use my medical insurance for a major claim say $12000.00 that would be paid to the hospital/ doctors etc that I may be taxed thru 1099 form . with obama health care act Reply I have never heard of this happening Reply I am owner and only employee of an S-Corp. I have been uninsured for years because of pre-existing conditions. I would like to get an individual policy for myself. What are my options?. My employer is me. Can my business get some kind of expense deduction or credit for providing me insurance? I already get a complete deduction of all my health care expenses through a health reimbursement arrangement with my company. I would rather have real insurance. What are my options in the brave new world? My income is too high for individual premium subsidies. Reply So, if we already have insurance coverage and not using the marketplace since we will not get a credit on our taxes does this me that we will also not get a credit for our medical expenses we have occurded during the year? Reply How. Large is the penalty for not having any my wife has medicare I don’t have anything now? Reply Hi Bob, If your wife already has Medicare, she will not receive a penalty. If you are required to have health insurance and don’t purchase by March 31, 2014, you will face a penalty of $95 for the year or 1% of your income if your household income is over $55,000. For additional answers to your specific health care questions visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply It’s 2.5% of income, not 1% The 1% is if you do not have insurence by , March 2014. However the amount your penalty will be will increase every year due to this “ObamaCare”. After March 2014. The penalty for not have medical insurence increases to $695 per person in your family or 2.5% of house hold total income. For single people it’s only you that play the $695 or 2.5% of yearly income… Penalty: 2014: $95.00 per individual/family member or 1% of household income, whatever is larger. 2015: $325.00 per individual/family member or 2% of houshold income, whaterver is larger. 2016: $695.00 per individual/family member or 3% of household income, whatever is larger. Reply Hi Leokham, Thank you. Here is additional information on the penalty: 2014: $95 per adult, 47.50 per uninsured child with a family maximum of $285 for the year or about 1% of your household income depending on household income. If you are single and make more than $20,000, your penalty will be 1% of your income less the tax filing threshold, if you are married and make more than $55,000 your penalty will be 1% of your income less the tax filing threshold. So if income is $21,000, it will be $21,000- 10,000= 11,000 x .01 = $110. 2015: $325 per adult, $162.50 per child, with a maximum penalty of $975 per family (or roughly two percent of total income depending on family income). 2016: $695 per adult, $347.50 per child, with a max of $2,085 per family, or about two and a half percent of total income depending on family income. For more answers to specific health care questions, visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis I’m retired and have lived abroad for the past 8 yrs. I rejected medicare at 65 because it can’t be used in a foreign country. How will ACA affect me? Thank you. Reply Hi Roger, If you live abroad, you are not required to purchase health insurance under the Affordable Care Act. For additional questions, please go to the TurboTaxAnswerXchange.com. Thank you, Lisa Greene-Lewis Reply My friend and his wife are US citizen. They have been living oversee (Vietnam) since 2008. They are 60 years old. Are they required to purchase Obama health insurance? Reply Hi John, Under the Affordable Care Act, you are not required to purchase health insurance if you live abroad. For additional questions, please go to the TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply I own a company and have private health insurance coverage for myself and my husband. Do I have to offer this to my employee’s as well? Or can we have private insurance and have them purchase it through the marketplace? Reply Hi Gayle, If you have over 50 full-time employees you will be required to offer your employees insurance, but the employer mandate has been extended to 2015. The individual mandate, however has not been extended so your uninsured employees should go through the Health Insurance Marketplace. For additional questions specific to your health care needs please visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply Great job Lisa! Reply I just purchased new insurance at about 150.00 cheaper than I had been paying for my private insurance. The coverage is so much better and it even has co-pay, prescription, etc.! The agent told said the new (more affordable) insurance was offered because of the Obama Health Care Act. I am thrilled! Will I also qualify for the tax credit? My employer has never offered insurance- so I have to buy it for myself and my children. I think Obama Care is the most wonderful thing any President has ever implemented. People may or may not like having to purchase health insurance, but I cannot imagine not having any- especially in today’s world. It is just being responsible- like having car insurance. We have needed it for a long time! Hats off to Obama and everyone who helped make it possible! Reply I’m happy you are able to have insurance and save $150. Just remember it’s because people like me had their insurance increase. Mine went from 2800 to 7100. The government doesn’t get the money out of thin air, it comes from working people like me (a single mom with 2 kids) Reply Ummm, she may be working and unable to afford insurance, but now she can. Just because you make enough money and your company offers a reasonable plan doesn’t mean that is true for everyone. My school didn’t offer teachers a plan that met the “under 9.5%” of your income clause for unmarried people. That sounds like somebody cheated you. You need help That’s all very well for you, and I agree everyone would benefit from having health insurance. But there’s no justification for the government to MANDATE it. Not only that, but the ACA even decrees what KIND of insurance you have to have. That’s just wrong. Reply Plus, most people are finding that their health insurance premiums go UP, not down, under ObamaCare; and employers are cutting full-time jobs and replacing them with part-time to avoid the employer cost of ObamaCare. It has a few good provisions, but overall it’s a disastrous law. Totally agree. Being forced to get something you want it or not is the exact opposite of freedom…and they easily could have made health care more affordable without mandating that everyone has it, but then the government wouldn’t be able to make money from charging us penalties…so yeah, not a good thing, the ACA is one of the biggest train wrecks to ever get passed in America. I went on the exchange and could choose from 33 options. 10 if I wanted a subsidy. I have never had an employer offer me 10 affordable options. Put down the kool-aid. You’ve had enough. Reply My husband and I are unemployed and have been paying for a medical risk management insurance program through our state (California). It is very expensive, but that is all we could get because of “pre-existing conditions”. We have no income, but are able to pay because of selling assets and help from family. Can this be considered as income to qualify for assisted healthcare? Reply Hi Anna, If selling your assets created a taxable event and you have to claim the income on your taxes, then you may be able to include this as income, but not the loans from your family. To qualify the Marketplace will look at wages and salaries, interest and dividends, unemployment benefits, and other sources of income plus the non-taxable portion of any social security, tax exempt interest, or any foreign income. For additional questions to your specific questions, please visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply I hope I understood your comment correctly. But here goes. You are selling your assets so you can get health insurance and they are taxing what you make out of the sale and making it manditory for you to buy insurance. That is sick. You should not have to pay taxes on the sale of your assets if you are using the money to buy insurance. What they are forcing you to do is not right. Reply « Older Comments Newer Comments » Leave a ReplyCancel reply Browse Related Articles Crypto Understanding Crypto and Capital Gains Work 7 Things You Need to Know About the New Business Report… Work Using Form 8829 to Write-Off Business Use of Your Home Tax Tips Roth 403(b) vs. Roth IRA: Which Should You Invest In? 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How can u find out about if u can get help with paying insurance Low rates. I am single mom with 2 kids not making 15,000 a year. ? Reply
The best place to get that information is your state’s Marketplace. With your low income and your family size, you should qualify for fully subsidized insurance. Reply
Your marketplace is http://www.healthcare.gov. You can apply for assistance there. They have free insurance as well as low cost insurance, and certain government benefits for paying for insurance and medical bills are only available if you get your insurance from the Marketplace. Reply
I have health insurance through my employer. The question is on my daughter. Her father is required to carry her health insurance however he has been known to let it drop with out letting me know. I claim her on my taxes. Do I get fined if he lets her insurance drop. I have tried to get it to where I carry her insurance but the court would not let me because he said he would. Reply
Yes, you will be fined if your daughter does not have insurance, because you claim her as a dependent on your tax return. Reply
What about students who are living and studying in a foreign country and who have insurance in the country they are residing? Reply
Do I have to pay a fine if I just get catastrophic insurance from an independent carrier and don’t buy from an exchange. Reply
I’m retired and the company I worked for pays 25% of my monthly premium and I pay 75% of the monthly premium. That 75% I pay totals around $10,000.00. a year. This is the only plan offered by my company and we plan on continuing on this plan till age 65. I was wondering if my wife and I may receive any tax credits on our 2013 or 2014 tax filing based on the percentage of our income paid for health coverage. Reply
If your company does it’s homework, it can offer you a cafeteria plan where health insurance is offered at a certain percentage. Yours is at 25% now. The amount you pay that is deducted from your paycheck can be deducted before taxes. So you don’t pay taxes on that amount. That is how my company does it. Reply
my understanding from our Health Ins broker, the law states you do not pay more than 9.5% of your earned income for coverage.(assets not part of the equation) If the employer ‘charges’ more out of your pay than 9.5% you can shop on the Marketplace/exchanges. Reply
If I purchase insurance thru the marketplace and receive a subsidy of a portion of the premium, will that subsidy amount be taxable when I file taxes in 2015 for tax year 2014? Reply
The subsidy is not taxable, but if you understate your income for the year, and your subsidy was too great, you could have to repay some of it. Likewise, if you overstate your income, and didn’t receive all of your subsidy, it will be refunded on your tax return. Reply
This is a huge compilation of angles on what is happening with the ACA. And when it comes to taxes, I understand everyone is really only interested in their own money, their own pocket, their own lives. But we are part of a whole, as a society, and have to consider ourselves as such, and being that as it is, we are responsible for taking care of our own health; because it DIRECTLY affects others. In theory, if we all take care of our own health, the health of society in general, improves. Currently, the health of our country is not very good. That’s an undeniable fact. I have yet to see that point enter the conversation here or anywhere else, when discussing healthcare, health insurance, and taxes for such. If we as a nation want better roads, we can’t (or won’t) fix them with our own hands, so we pay, with taxes, to have them improved. You want to be in better health, right? And so, as a nation we want better health… Reply
Keep your opinion as your own. (We is a huge assumption) and I don’t believe your single opinion speaks for the majority of America. What good of a nation are we, if we are financially in the dump? I am not of the ethical or moral position, that I believe, I have to sacrifice my wealth so that another can benefit. You can only redistribute so much…until it’s all gone! Reply
It’s not a declared opinion, it’s a practice in logic. I haven’t imposed or assumed anything. It’s a simple matter of taking care of our own health, not paying (either out of pocket or via taxes) for the health of others. Take care of your own health, then you eventually don’t have to pay for others. Do with your wealth as you will, that’s a right for us all. My only point is, I think the majority of America wants to be healthy. I could be wrong, but I think they do.
I do not have heath care and need it badly a low cost heath Care Americn great ideal. Is it a bad thing for company to compent for our dollars. Also with some company that make is sick why not have heath care. Reply
Hello, I was wondering. Through my 1199 union, I only get hospitalization insurance because I am only part-time. Does that meet the requirements ? Reply
Live in the State of Oregon…Son (29 ) as been unemployed since 2009. I claim him as a dependent as he lives in my house and provide 100% of his needs (food, clothing, etc.). He is not eligible for OHP as he is neither pregnant or a minor. Per the state he still will not qualify for OHP. Are there options for this type of situation or does he continous to fall into what apparently is a black hole in the system? Reply
Hi, You son should be able to purchase a policy on Cover Oregon at http://coveroregon.com/ For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
Hi Lisa. What will be the tax consequences and the changes to turbo tax for tax year 2014 that we will be filing in early 2015? Details please. thanks. jh Reply
Thanks Lisa for the information. First of all, you will NOT be penalized until you are actually in the situation that you would need H.I. If this info is correct, Lisa, then you are saying that for NOT spending the tax money that we the people are paying, we will be penalized on it. This seems like a skewed plan drawn up to build monetary sustainability….for the government. I hope people understand why the “government shutdown” isn’t so bad 🙂 Reply
I only have child support and no income of my own. I am unemployed and am a part time student. I have no insurance and just pay as I get billed from any doctors when I go , which is rare. Since I have no income of my own will I have to purchase insurance? Reply
Hi Betty, If you don’t have any income you will not be required to purchase health insurance. If you earn under the IRS income requirement for filing a tax return (about $10,000) you are exempt. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
What if you have a 28 year old unemployed family member that you support 100% and claim as a deduction when I file my taxes. Will I have to pay the penalty for him not having any health insurance?
you will most likely qualify for Medicaid/ state health insurance since you have no income. and now you are required to obtain that. The whole idea of this is to cover those who have NO or limited income so you get the care needed and hospitals don’t have to write off your visit to the hospital. Reply
What the hell does me getting sick or my son splitting his head open have to do with taxes? And why are we forced to pay for something we may not use? This is one MAJOR SCAM! Reply
I would think if you became ill or your kid splits his head and you don’t have insurance, you may not be able to pay the bill if it’s thousands of dollars. *You may be able to. but some may not. Then the hospital has to suck up the expense and it seems like hospital/doctors cost would go up to keep compensating for those that cannot pay the bill. Not really fair for those who do have insurance. Just my thought. Reply
Oh and deductibles for the grandiose healthcare that the potus exempted himself, family, congress, unions, Muslims from are out of this world. $762 a month with a $12,316 predictable. Yeah that’s real affordable…Not! Reply
Hi Lynn, If you already have health insurance through the VA, you are not required to purchase health insurance. For more answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
My son (31) and granddaughter (4) are currently insured by NH Medicaid. Do they need to purchase additional insurance? Reply
Hi Debbie G, If they already have Medicaid, they don’t need to purchase additional insurance. For more answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
I thought the AFA was to help those needy Americans that can’t get insurance, or afford insurance, but according to the information I am reading, if you make less than $10k per year, you aren’t even required to purchase health insurance? Now who is this supposed to help? Aside from one comment on this entire thread, the only information that I am gleaning is that this act is going to hurt a whole lot of people and make health insurance MORE expensive!!!! Oh, not to mention that congress is eligible for a 72% subsidy to purchase through the marketplace. Gotta love this administration. Such a caring, freedom loving, group of people. Not! Reply
My son is in almost in the same boat – lost his group insurance in 2009 and hasn’t worked since and has a pre-existing condition. He cannot get medicaid and has zero income. He will not qualify for any help from the ACA. So how will he be insured????? Reply
if you make below a certain amount you don’t qualify on the exchange because technically you qualify for medicaid BUT you don’t actually qualify for Medicaid if you own more than $2000 in assets? i guess this is their way of forcing you sell off all your assets to pay for insurance and then once you are flat out broke they’ll give you medicaid.
http://www.consumerreports.org/cro/2013/03/download-our-free-guides-to-health-care-reform-and-medicare/index.htm
Thanks for the information David Wooster. It is very hard to hear this kind of law passing specially in a situation that my family is going through at the moment. I have 3 small boys to support that are 2, 3 and the older one is 5 so just imagine! It is hard times for me as the dad that hasn’t found a job due to lack of education. Well I know God will help,supply and provide the means for our crisis at the moment…
If you make less than $10k, you can enroll in medicaid, so you don’t need to “purchase” anything. I’m 26 and will be saving 33-45% on my health insurance per month next year. Depending on the plan I choose. Reply
I am permanently disable and do not qualify for medicare for 24 months. You can apply for medicaid but you are limited on what you own such as a house or vehicle. Also, you are limited as to how much you have in savings. I own two vehicles: a 1991 toyota with 300,000 miles and a 2001 PT cruiser with 100,000 miles. This disaqualified me from medicaid.
Since you are available for Medicaid you have to get your health insurance from Department of Human services. Reply
” not required to purchase insurance”, not quite accurate. You must HAVE it/obtain it. If cant afford it, the State will pay for it for you.( under the 10k income level) Thus you aren’t writing a check to purchase, but the State will cover it for you instead. Reply
The marketplace will determine if you are eligible for Medicare or Medicaid and sign you up. Remember politics, if you are worried you will spend less money and the economy slumps making the other party look bad. This will add up to a savings for American taxpayers within about 10 years. Our right to affordable healthcare and not to be treated like cheap disposable labor is involved with our rights to life and liberty. My mother died because she was self-employed and made too much and too little for preventative care and cancer treatments. This insurance would have saved her life but like many people she felt invincible to illness and gambled with her life and lost. This is a historic moment for equality of the working class vs. management. Congress gets a subsidy as part of there service to the government. Reply
Hi Lisa, I’m a dual citizen, have a home in the US and in a different country. I work for a company in the US but live most of my life (thanks to telecommuting) in the other country. A healthcare plan in the US would not benefit me since I basically don’t reside there. Is there an exception for me out there that would allow me to not have to get the insurance plan? Thanks, Daniel Reply
Hi Daniel, Yes, if you live overseas, you do not have to purchase health insurance. For more answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
Wake up ! with the AFCA if your mother was over 75 she would not have gotten treatment anyway .Artilcles 55 -58 . Reply
I have a question it seems I can’t get a definitive answer to, I am a single father who is supposed to get child support/partial insurance from my ex, unfortunately I don’t receive either and I’m stuck with insurance through my company which totals about $5300.00/yr, plus whatever copays and prescriptions, I have two teenage daughters, so it totals well over $6k/yr, can I write any of this or all off on my taxes? Reply
Hi Tony, Yes, if you itemize your tax deductions (file schedule A), you can write off medical expenses as long as they’re more than 10% (7.5% for 65 or older) of your adjusted gross income. So for example, if your income is $50,000, you can deduct medical expenses more than $5,000 ($50,000 x 10%). Thank you, Lisa Greene-Lewis Reply
Lisa – It looks like Tony is paying his premiums through his job (it doesn’t sound like he’s self-employed) so his premiums are deducted from his paycheck. If that is the case, his premiums would not be able to write off the premiums on his tax return.
My 28 year old daughter was insured until this week through her employer. She is now working part time and therefore is no longer insured. She’s attending the university full time and had to cut back on work in order to go to school and have enough time to study. She checked on the insurance through the university but she can’t afford 2400 Dollars a year. What is her best option? Reply
I appreciate the information, doesn’t make me feel any better about it. Instead of saying the government will help subsidize these premiums, why not say who really covers this funding…….The Tax Payer! I honestly think there are those out there who think the government is giving them something…..it’s not…..it’s hard working people having more of their hard earned money being taken out of their pockets. Reply
AMEN Tracy!! That is the misconception most people have! They think that “Our Government” has some kind of magical bank account that all this “FREE MONEY” is kept in. Wake up people!! This is Obama and the Democrats “spreading the wealth” theory!! I go to work everyday, have to submit to random drug testing, pay outrageous taxes and healthcare premiums, contribute to Social Security (which I’ll never see a penny of!!) Medicare etc…. Just to pay for those of you wanting everything for free!!! Reply
um, the ‘tax payer’ pays for everything in this country. That is how it’s ran. If someone goes to the ER and doesn’t pay the bill, tax payer$ are used and costs go up . Now, those paying premiums( either employers or the employee), that money helps pay premiums for those who cant pay premiums. Same concept, different method. Reply
I have had my own individual health insurance plan for many years and according to this article I’m all set and don’t need to do anything, however, I just got a notice from my health insurance company saying that my current plan WILL END on the last day of the year and I will need to go to the marketplace and select a new plan. I don’t understand the apparent contradiction. Reply
Hi John, If you already have health insurance you don’t need to do anything, but if your plan ends and they are not offering an opportunity to enroll again then you would need to purchase insurance in the Marketplace. For more answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
My daughter does not have a job and cannot afford healthcare, she lives in MA how does she go about getting help with this? Reply
Hi Erika, Your daughter should check out the Marketplace for your state. She will find all the options she qualifies for there. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
She should start by going to healthcare.gov and enter her state. It will direct you from there. Reply
My 27 year old son is unemployed and has no income. He is no longer covered by my insurance and has none of his own. He has no income and no assets and is living in my basement, I currently claim him as a dependent since I fully support him. Will he be required to purchase insurance, and if he doesn’t what are the ramifications? Reply
What if you moved out of the country in August of 2013 and plan on returning August 14th? How will these dates affect the law? Surely I don’t have to have health insurance if I am living outside of the United States in order to not get he tax penalty do I? Reply
Hi Sean, Did you mean returning August 2014? You are not required to have health insurance until 2014. If you live outside the US you are not required to have health insurance. Once you return, you would need to have health insurance. If you have a gap in coverage of less than 3 months you will not receive a penalty. For more answers to your specific health care questions, visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
Do we get charged more if we decline getting insurance for a dependent even though I get insurance through my employer Reply
Hi Cindy, Yes, you will receive a penalty for not insuring your dependents in your household even if you have employer provided health insurance. In 2014 the penalty for children is $47.50 per child. Children under the age of 19 may qualify for Children’s Health Insurance Program (CHIP) or be covered under a family plan through your employer up to age 26, if your employer plan offers dependent coverage. They may also be eligible for coverage through the state exchange marketplace. https://www.healthcare.gov/are-my-children-eligible-for-chip/ For more answers to your specific health care questions go to TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
But part A only covers inpatient hospital stays. Nothing outpatient. Therefore she would be classified as not insured to a dr office because that is outpatient. Reply
I have a friend that’s let’s me stay at his house for free as I’m not working and have no income. Do I have to put his income in my application? He’s totally separate from me except I stay rent free in his spare room. Thanks Reply
Hi AJ, No, you would only include his income if you claimed him as a dependent. If you do not have any income you are not required to purchase health insurance under the Affordable Care Act. Please visit TurboTaxAnswerXchange.com to see more answers to your specific health care questions. Thank you, Lisa Greene-Lewis Reply
I am covered by my gay spouse but can not afford to pay the premiums. I am not working and can not. Can I qualify for cheaper coverage. He pays almost 700 per month for me now. I’m 62 Reply
Hi Larry, If you are a legally married same-sex couple, you will now be required to file your taxes as married. If that is the case, you can try to find cheaper health insurance in the marketplace, you just have to remember you will have to include your spouses income when you apply for health insurance. For more answers to your specific health care questions, visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
What they forgot is what if your employer offers insurance but you can not afford to pay for it. That’s where I am at. I can pay for mine but it will cost me an extra $400 a month to insure my son. I am low income and can not afford this. Reply
You do qualify for a subsidy if your out of pocket premiums are too high. I would talk to a local representative who signs people up if you can qualify. It depend on your total income and how much out of pocket your premiums are.
Two of my adult daughters are divorced with very low incomes. I am paying for their individual medical insurance at this time which is very expensive to me. Are they eligible to sign up for insurance with one of the exchanges even though they have insurance.. Reply
Please do your research and look for facts. It not as simple as “yes” or “no”, as there is many variables. If you live in CA 1-800-300-1506 or http://www.coveredca.com. They will answer all questions an answer quickly. If you do not live in CA you can us the website for general information. Reply
Talk to your local nonprofit representatives who sign people up. If you can’t afford insurance and you live in a state that is expanding medicaid coverage, you may now be leigible for this. Reply
Hi there, My family of 5 receives health insurance through my husband’s work, however his employer sent us something that says we may qualify for health care insurance through the Exchange. Is this true? We currently have a $2 K deductible and pay about $300 in monthly premiums. Because our combined income is about $40K is it likely that we would qualify for a subsidy and it would be cheaper than what his employer offers? Reply
I was under the impression that if you have employer coverage , u can not get insurance from the exchange, unless his company doesn’t offer anyone in te company insurance anymore. Reply
Hi Rebecca, If you have employer provided insurance you can shop in the Marketplace, however you may not get assistance. The only way you can get assistance is if your employer does not provide “affordable coverage” (employee’s share is greater than 9.5% of annual household income) and the insurance does not meet “minimum value”(employer provided coverage does not pay at least 60% of the total cost of medical services). For more answers to you specific health care questions, visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis
You are in the same situation I am in. If your company offers insurance you do not qualify for a subsidy. I make 27 thousand with insurance and it will cost me $400 extra to insure my son. I can not afford this. Not Affordable!!! Reply
If you have employee coverage you may be eligible if your premiums are over 9.5% of your income with certain tax deductions included. Check with a local rep on health exchange to find out. Many states have nonprofit health groups helping people figure things out. Reply
I have heard that if my employer pays for my health insurance (or pays for a portion of it), the amount they pay is now considered to be compensation I am receiving, and is tax deductible? Is this correct? Reply
Are premiums for long term care insurance deductible along with regular health care premiums? Also, can you deduct Part B premiums for medicare? Reply
I have insurance through my employer, but can’t afford what they charge for the kids, will the $95 penalty apply towards them. I’m trying to get them back on the low cost insurance through the state (Nevada), but had problems since my daughter is only 5. I have to go back & re-apply for all the kids again. Reply
I am shopping for health insurance on my state’s (WA) insurance exchange, and when the premium amount is listed, it is giving me the full price for the premium. I am currently making less than 200% of the federal poverty level, and as far as I can tell, have no other reasons that disqualify me from receiving the subsidy. So I’m wondering, how does the subsidy work? Is it automatically calculated into the cost of my premium, causing me to pay the lower amount, or is it returned with the tax return? Reply
Speak to a local health exchange rep. My sister’s family qualify for a family of 4 and they make about 55,000. Reply
Already have ins thru my employer so I heard if I would happen to use my medical insurance for a major claim say $12000.00 that would be paid to the hospital/ doctors etc that I may be taxed thru 1099 form . with obama health care act Reply
I am owner and only employee of an S-Corp. I have been uninsured for years because of pre-existing conditions. I would like to get an individual policy for myself. What are my options?. My employer is me. Can my business get some kind of expense deduction or credit for providing me insurance? I already get a complete deduction of all my health care expenses through a health reimbursement arrangement with my company. I would rather have real insurance. What are my options in the brave new world? My income is too high for individual premium subsidies. Reply
So, if we already have insurance coverage and not using the marketplace since we will not get a credit on our taxes does this me that we will also not get a credit for our medical expenses we have occurded during the year? Reply
Hi Bob, If your wife already has Medicare, she will not receive a penalty. If you are required to have health insurance and don’t purchase by March 31, 2014, you will face a penalty of $95 for the year or 1% of your income if your household income is over $55,000. For additional answers to your specific health care questions visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
The 1% is if you do not have insurence by , March 2014. However the amount your penalty will be will increase every year due to this “ObamaCare”. After March 2014. The penalty for not have medical insurence increases to $695 per person in your family or 2.5% of house hold total income. For single people it’s only you that play the $695 or 2.5% of yearly income…
Penalty: 2014: $95.00 per individual/family member or 1% of household income, whatever is larger. 2015: $325.00 per individual/family member or 2% of houshold income, whaterver is larger. 2016: $695.00 per individual/family member or 3% of household income, whatever is larger. Reply
Hi Leokham, Thank you. Here is additional information on the penalty: 2014: $95 per adult, 47.50 per uninsured child with a family maximum of $285 for the year or about 1% of your household income depending on household income. If you are single and make more than $20,000, your penalty will be 1% of your income less the tax filing threshold, if you are married and make more than $55,000 your penalty will be 1% of your income less the tax filing threshold. So if income is $21,000, it will be $21,000- 10,000= 11,000 x .01 = $110. 2015: $325 per adult, $162.50 per child, with a maximum penalty of $975 per family (or roughly two percent of total income depending on family income). 2016: $695 per adult, $347.50 per child, with a max of $2,085 per family, or about two and a half percent of total income depending on family income. For more answers to specific health care questions, visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis
I’m retired and have lived abroad for the past 8 yrs. I rejected medicare at 65 because it can’t be used in a foreign country. How will ACA affect me? Thank you. Reply
Hi Roger, If you live abroad, you are not required to purchase health insurance under the Affordable Care Act. For additional questions, please go to the TurboTaxAnswerXchange.com. Thank you, Lisa Greene-Lewis Reply
My friend and his wife are US citizen. They have been living oversee (Vietnam) since 2008. They are 60 years old. Are they required to purchase Obama health insurance? Reply
Hi John, Under the Affordable Care Act, you are not required to purchase health insurance if you live abroad. For additional questions, please go to the TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
I own a company and have private health insurance coverage for myself and my husband. Do I have to offer this to my employee’s as well? Or can we have private insurance and have them purchase it through the marketplace? Reply
Hi Gayle, If you have over 50 full-time employees you will be required to offer your employees insurance, but the employer mandate has been extended to 2015. The individual mandate, however has not been extended so your uninsured employees should go through the Health Insurance Marketplace. For additional questions specific to your health care needs please visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
I just purchased new insurance at about 150.00 cheaper than I had been paying for my private insurance. The coverage is so much better and it even has co-pay, prescription, etc.! The agent told said the new (more affordable) insurance was offered because of the Obama Health Care Act. I am thrilled! Will I also qualify for the tax credit? My employer has never offered insurance- so I have to buy it for myself and my children. I think Obama Care is the most wonderful thing any President has ever implemented. People may or may not like having to purchase health insurance, but I cannot imagine not having any- especially in today’s world. It is just being responsible- like having car insurance. We have needed it for a long time! Hats off to Obama and everyone who helped make it possible! Reply
I’m happy you are able to have insurance and save $150. Just remember it’s because people like me had their insurance increase. Mine went from 2800 to 7100. The government doesn’t get the money out of thin air, it comes from working people like me (a single mom with 2 kids) Reply
Ummm, she may be working and unable to afford insurance, but now she can. Just because you make enough money and your company offers a reasonable plan doesn’t mean that is true for everyone. My school didn’t offer teachers a plan that met the “under 9.5%” of your income clause for unmarried people.
That’s all very well for you, and I agree everyone would benefit from having health insurance. But there’s no justification for the government to MANDATE it. Not only that, but the ACA even decrees what KIND of insurance you have to have. That’s just wrong. Reply
Plus, most people are finding that their health insurance premiums go UP, not down, under ObamaCare; and employers are cutting full-time jobs and replacing them with part-time to avoid the employer cost of ObamaCare. It has a few good provisions, but overall it’s a disastrous law.
Totally agree. Being forced to get something you want it or not is the exact opposite of freedom…and they easily could have made health care more affordable without mandating that everyone has it, but then the government wouldn’t be able to make money from charging us penalties…so yeah, not a good thing, the ACA is one of the biggest train wrecks to ever get passed in America.
I went on the exchange and could choose from 33 options. 10 if I wanted a subsidy. I have never had an employer offer me 10 affordable options.
My husband and I are unemployed and have been paying for a medical risk management insurance program through our state (California). It is very expensive, but that is all we could get because of “pre-existing conditions”. We have no income, but are able to pay because of selling assets and help from family. Can this be considered as income to qualify for assisted healthcare? Reply
Hi Anna, If selling your assets created a taxable event and you have to claim the income on your taxes, then you may be able to include this as income, but not the loans from your family. To qualify the Marketplace will look at wages and salaries, interest and dividends, unemployment benefits, and other sources of income plus the non-taxable portion of any social security, tax exempt interest, or any foreign income. For additional questions to your specific questions, please visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
I hope I understood your comment correctly. But here goes. You are selling your assets so you can get health insurance and they are taxing what you make out of the sale and making it manditory for you to buy insurance. That is sick. You should not have to pay taxes on the sale of your assets if you are using the money to buy insurance. What they are forcing you to do is not right. Reply