The Truth About Healthcare Reform
Starting to hear more about health care reform? You’re not alone. And you may be hearing some conflicting information about what you need to do and when you need to do it.
At TurboTax, we’re here for you every step of the way so we’ve got the basic facts that you need to know.
What is health care reform?
Today, there are an estimated 48 million Americans without health care coverage. The Affordable Care Act, or health care reform, is designed to provide cost-effective health insurance to those who are uninsured.
Health care reform includes a new tax credit for an estimated 20 million low-to-middle income Americans. The tax credit will help people purchase affordable health care who otherwise would be unable to afford it.
Here’s what you need to know right now:
- The requirement to purchase healthcare does not impact your 2012 tax return. Phew! You don’t need to do anything right now.
- But you should know that your 2012 tax return will help determine your eligibility for an insurance subsidy from the government, which will help you purchase health insurance under the health care law..
- When you file your 2013 tax return you still don’t need to do anything. The requirement to purchase healthcare does not impact your 2013 tax return.
- Beginning in Oct. 2013, uninsured Americans will be able to enroll in a health plan through state and federal exchanges.
- In 2014 everyone, except for a few, will be required to purchase health insurance or face a tax penalty.
There are a few groups of people who will not be required to get health care coverage or pay a penalty. This includes those with income below the IRS requirements for filing taxes, those who qualify for religious exemptions, and members of Indian tribes.
You can rest assured that TurboTax is always up-to-date with the latest tax laws. We’ll let you know what you need to do in the future to help you keep more of your hard earned money.
And if you have questions, call us and an experienced TurboTax tax pro will take care of you. Only TurboTax lets you talk to CPAs, enrolled agents and tax attorneys while you prepare your tax return, free.
Have product questions? We have your answers.
WICH FORM SHOULD I USE FOR CLAIM MY RACING HORSES?
I have still not gotten any answer that even comes close to my question.
I file property and heating tax cedit only.
I have two Daughters with dibilities.
They recieve SS and Disibilty monthly plus they both work.
I being the Payee and them being the beneficiaries of what they recieve from the State…who’s tax form do I put that income on…mine or theirs.
Hi Lanette,
I’m sorry you didn’t receive your answer. I remember answering your comment. If you have legal right to receive the benefits and the checks are made out to you, you may have to include part of the benefits with your other income to see if it is taxable.
One-half of the part that belongs to your child must be added to your child’s other income to see whether any of benefits are taxable to your child.
TurboTax software will help you and ask you the appropriate questions to figure out if any of the income is taxable to you. Also, don’t forget if you have further questions, you can speak with our tax experts for free at 1.800.4.intuit.
Also, please see IRS publication 915 under who is taxed on page 4 http://www.irs.gov/pub/irs-pdf/p915.pdf
I hope this helped you.
Thank you,
Lisa Greene-Lewis
Lisa; Both the Social Security and the disiblity money has both my name as Payee and the Girls name as beneficiaries. They have no taxes taken out of the checks. That’s why I’m puzzled about who claims what. My only income is caregiving which also is not taxed…only Union Dues are taken out. That is why I only file Property Tax and Heating Tax Credit. I did go to the sight you gave me and read page 4 like you said…and it only confused me more.