Health Care Reform and Your Taxes
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.