The Affordable Care Act, Obamacare, individual health insurance mandate-no matter what term you use, they have been all the buzz, since the individual health insurance mandate was upheld by a Supreme Court ruling today. The individual insurance mandate aims to extend health insurance coverage to 30 million uninsured Americans, but how does that ruling impact your taxes today or even the next time you file your taxes?
Not too much since Americans have until 2014 to take action if they do not have health insurance and those who have insurance will not be impacted at all.
To make things more clear for you and relieve any angst you may have about the ruling and how it relates to taxes, I have outlined the mandate’s two key provisions:
- One provision requires most Americans to obtain minimum health insurance coverage by 2014 or pay a penalty when tax year 2014 taxes are filed.
- The other provision is a Medicaid expansion, which gives funds to states who provide specified healthcare to all citizens whose income falls below certain limits.
Many other provisions have already gone into effect such as reductions in seniors’ prescription drug costs, help for children and some adults with preexisting conditions, and allowing children up to age 26 to remain on their parents’ health insurance.
So far there aren’t any other new details regarding the health care mandate, but rest assured you don’t have to worry about including anything related to this ruling on your 2012 or even 2013 taxes and we will continue to keep you informed and up to date with all of the latest information on this topic.