Affordable Care Act Update: New Hardship Exemption Announced

Just days before the new December 24 deadline to enroll in health care coverage to start January 1, the Obama administration announced on December 20th, that it will waive the individual mandate under the Affordable Care Act for those individuals who receive cancellation notices due to their health plans not meeting minimum requirements under the Affordable Care Act.

What Does This Mean for You if Your Insurance Was Cancelled?

  • You may now qualify for the Cancellation Hardship Exemption.
  • You will not pay a tax penalty for 2014 if you don’t purchase health insurance.
  • You may be able to buy a Catastrophic policy in the Health Insurance Marketplace.  These plans were once only available to individuals under 30 or individuals who meet an affordability exemption.

How Do You Qualify for a Policy Cancellation Exemption?

  • To qualify, you can complete a hardship application, which when approved will let you purchase a catastrophic plan or receive a penalty waiver.

Check back with the blog for more up to date information regarding the health care law.

TurboTax is here to help explain health care reform and how it affects you and your taxes, so that you can make the best decision for your health and finances.

Have specific questions about how this impacts you?  Get  health care answers at TurboTax Health

TurboTaxLisa

Lisa Lewis is a CPA and the TurboTax Blog Editor. Lisa has 15 years of experience in tax preparation. Her success is attributed to being able to interpret tax laws and help clients better understand them. Lisa also has been a TurboTax product user for many years and understands how the software program works. In addition to extensive tax experience, Lisa also has a very well-rounded professional background. She has held positions as a public auditor, controller, and operations manager. Prior to becoming the TurboTax Blog Editor, she was a Technical Writer for the TurboTax Consumer Group and worked on a project to write new FAQs to help customers better understand tax laws. She could also be seen helping TurboTax customers with tax questions during Lifeline. For Lisa, getting timely and accurate information out to customers to help them is paramount.

Comments (2) Leave your comment

  1. I am 63 and retired. How do I establish my annual income? I get just over $1260 social which covers my home expenses. I will probably work part time and withdraw from an IRA. Do, I overestimate combining the social security and that I’ll earn maximum dollars allowed by social security? My medical expenses are high as I had breast cancer surgery two years ago and go every three months for testing plus I’m still paying off debt. .

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