Getting married is a major life milestone. And it’s a milestone that involves a lot of big changes – from your last name to your finances, taxes, and most importantly this year, to your health care plan.
Under the Affordable Care Act, most uninsured Americans were required to have health insurance coverage by March 31, 2014 or risk facing a tax penalty on their 2014 tax return when they file next year, however a life event as big as marriage may allow you to purchase health insurance outside of the open enrollment period.
If you just tied the knot or are planning to, here are some things you need to know about health insurance under the new health care law.
What if my spouse already has coverage through an employer?
After you get married, you have two basic options for obtaining health insurance: you can gain coverage through your spouse’s employer or purchase an individual plan inside or outside the Marketplace. As long as your spouse’s employer offers health coverage that meets the minimum requirements, you should be able to join your spouse’s existing health plan.
What if I am already insured in the Marketplace?
If you, or your spouse, are already covered through the Marketplace, your tax credit or subsidy may change. When you purchased health insurance in the marketplace, you likely received a subsidy or premium tax credit based on your income and family size to help you pay your monthly insurance premiums.
If your family size or household income at your time of enrollment differs from when you file your 2014 tax return, then your actual premium tax credit for the year may differ from the advanced tax credit estimated by the Marketplace.
So when you file your 2014 taxes in 2015, your projections will be compared with your actual income and family size, giving you either more or less premium tax credit.
Neither of us have coverage options through our employer. What are our options?
If neither you nor your spouse has coverage available through an employer, you have a few options:
- Under Age 26 – If you are under the age of 26, you can remain on or enroll in your parent’s health insurance plan. Even if you’re married. This rule applies to both job-based plans and an individual plan purchased inside or outside the Marketplace.
- File for Special Enrollment – If you are over the age of 26 but missed the open enrollment period, there are certain life events, including getting married, that will qualify you to file for a special open enrollment period. This means, the government will grant you a special 60-day window to shop for a plan in the Marketplace. However, if you do choose to go this route, act fast. The enrollment period begins on the day of your life event, not on the day you file.
With wedding season in full swing, TurboTax has you covered. If you are getting married or are newly married, TurboTax Health can help you understand what the Affordable Care Act means for you and your taxes.