Health Care Welcome to TurboTax Health Care, Taxes, and You 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 Oct 23, 2014 1 min read You have probably heard that the Affordable Care Act requires most Americans to have health insurance or pay a tax penalty when filing their 2014 taxes – the ones they will file in 2015. Luckily, the majority of Americans — 9 out of 10 to be exact — have health insurance that meets minimum essential coverage requirements, so all they will need to do is to check an extra box on their tax return. That’s it. If you don’t have insurance, we have a few tools to help you navigate the process easily. You can always check back with the TurboTax blog to get a quick rundown on how the new health care law might affect your taxes, so you are well informed come tax season. If you need to get health insurance, check out TurboTax Health, where we can connect you to affordable insurance options. We’re also introducing Health Care, Taxes and You: a place dedicated to answering your most pressing questions around health care and taxes. Have a question we haven’t answered? Post your questions in the comment box below, and we will have them answered. Previous Post Twenty-Something’s Guide to the Affordable Care Act [Infographic] Next Post Ready, Set, Go! 2015 Marketplace Open Enrollment Begins November 15 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. 10 responses to “Welcome to TurboTax Health Care, Taxes, and You” My wife and two sons have Marketplace insurance. Can I deduct the insurance premiums I pay over and above any premium tax credit as an itemized deduction, or is the premium tax credit itself the only tax benefit I can claim? I have not found an answer to this question from any knowledgeable expert on the subject. Not even the IRS itself saw fit to definitively answer this question in its publications. Thank you. Reply My husband has been unemployed in 2014 and doesn’t have health insurance. I am employed and I have health insurance. We file our taxes jointly every year. Since I am the sole income earner, I will most likely get a refund. Will they deduct the penalty from my refund? What is the maximum penalty for not having health insurance? If I earned $45,000 this year, does that mean the penalty will be $450? Thank you. Reply Is the subsidy I received in 2014 to help offset the cost of my healthcare premium taxable as income? Reply Okay, how will the question be asked when filing taxes? If someone has insurance currently and has had it for the majority of 2014 but changes jobs and doesn’t qualify for about a month and half (mid dec-January) will it ask as of today do you have insurance or during 2014 did you have insurance? Reply Erika, The forms will allow you to check a box fore each month yu are covered. If you are covered for part of a month, you are considered covered for the month. You are allowed three months of no coverage without penalty to allow for job transitions and the like. Mary Ellen Reply Ok so far I see no answers to my question, Iam 62 can not afford an extra 90 a month, i do not work, my husband in 65 now on medicare, I had to be taken by ambulance no insurance, only 400 00 over state paverty level so we are stuck with a 200.00 month hospital bill or collections, so now what, husband is insured medicare me no income ss for him and a part time minimum wage for him as I said i do not work but as of Dec will recive spousal ss benifits, no assets don’t own our home . What are we goung to have to do with wonderful Obama Care, we tried for Az state coverage turned down and can’t afford extra coverage for me alone, now what Reply Margaret, You could qualify for an exemption to the coverage requirement. You can check it out at https://turbotax.intuit.com/health-care. Mary Ellen Reply Like many millions of other Americans, we received our letter announcing the cancellation of our family’s health insurance policy at the end of this year, courtesy of the Unaffordable, Uncaring Act (aka ACA.) Since the passage of this legislation, health insurance premiums have risen dramatically, making heath insurance unaffordable without government subsidy. While there are outstanding legal challenges to the current IRS interpretation of the ACA, one can only obtain a subsidy if one applies through the insurance exchange in one’s state of residence. Our state chose not to set up its own exchange, and so it seems we must apply through the Healthcare.gov exchange. With the subsidy, health care insurance is now completely unaffordable. However, the GAO and other groups have again recently reported that the Federal government’s health care exchange, however accessed (website, phone, mail), is very insecure, with a high risk to any personal information given to the exchange. So what is an we and others to do ? Reply I get an extra $143 a week to my taxable income for my Domestic Partnrr is covered on my health insurance. (His company does not offer health coverage) My question is. Is there anyeay to offset the penalty? Reply Michelle, I am not sure why you think you will have a penalty. If you are covered all year by insurance, there is no penalty. Unless you are able to file a joint tax return with your partner, you will not be able to deduct the premiums as medical expense, so you will have additional tax to pay on the income. Mary Ellen Reply 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? Life Interest Rates, Inflation, and Your Taxes Investments Essential Tax Tips for Maximizing Investment Gains Uncategorized TurboTax is Partnering with Saweetie to Elevate Hoop Dr… Business Small Business Owners: Optimize Your Taxes with a Mid-Y… Small Business The Benefits of Employing Your Children and the Tax Bre… Income and Investments Are Olympics Winnings Taxed?
My wife and two sons have Marketplace insurance. Can I deduct the insurance premiums I pay over and above any premium tax credit as an itemized deduction, or is the premium tax credit itself the only tax benefit I can claim? I have not found an answer to this question from any knowledgeable expert on the subject. Not even the IRS itself saw fit to definitively answer this question in its publications. Thank you. Reply
My husband has been unemployed in 2014 and doesn’t have health insurance. I am employed and I have health insurance. We file our taxes jointly every year. Since I am the sole income earner, I will most likely get a refund. Will they deduct the penalty from my refund? What is the maximum penalty for not having health insurance? If I earned $45,000 this year, does that mean the penalty will be $450? Thank you. Reply
Is the subsidy I received in 2014 to help offset the cost of my healthcare premium taxable as income? Reply
Okay, how will the question be asked when filing taxes? If someone has insurance currently and has had it for the majority of 2014 but changes jobs and doesn’t qualify for about a month and half (mid dec-January) will it ask as of today do you have insurance or during 2014 did you have insurance? Reply
Erika, The forms will allow you to check a box fore each month yu are covered. If you are covered for part of a month, you are considered covered for the month. You are allowed three months of no coverage without penalty to allow for job transitions and the like. Mary Ellen Reply
Ok so far I see no answers to my question, Iam 62 can not afford an extra 90 a month, i do not work, my husband in 65 now on medicare, I had to be taken by ambulance no insurance, only 400 00 over state paverty level so we are stuck with a 200.00 month hospital bill or collections, so now what, husband is insured medicare me no income ss for him and a part time minimum wage for him as I said i do not work but as of Dec will recive spousal ss benifits, no assets don’t own our home . What are we goung to have to do with wonderful Obama Care, we tried for Az state coverage turned down and can’t afford extra coverage for me alone, now what Reply
Margaret, You could qualify for an exemption to the coverage requirement. You can check it out at https://turbotax.intuit.com/health-care. Mary Ellen Reply
Like many millions of other Americans, we received our letter announcing the cancellation of our family’s health insurance policy at the end of this year, courtesy of the Unaffordable, Uncaring Act (aka ACA.) Since the passage of this legislation, health insurance premiums have risen dramatically, making heath insurance unaffordable without government subsidy. While there are outstanding legal challenges to the current IRS interpretation of the ACA, one can only obtain a subsidy if one applies through the insurance exchange in one’s state of residence. Our state chose not to set up its own exchange, and so it seems we must apply through the Healthcare.gov exchange. With the subsidy, health care insurance is now completely unaffordable. However, the GAO and other groups have again recently reported that the Federal government’s health care exchange, however accessed (website, phone, mail), is very insecure, with a high risk to any personal information given to the exchange. So what is an we and others to do ? Reply
I get an extra $143 a week to my taxable income for my Domestic Partnrr is covered on my health insurance. (His company does not offer health coverage) My question is. Is there anyeay to offset the penalty? Reply
Michelle, I am not sure why you think you will have a penalty. If you are covered all year by insurance, there is no penalty. Unless you are able to file a joint tax return with your partner, you will not be able to deduct the premiums as medical expense, so you will have additional tax to pay on the income. Mary Ellen Reply