Intuit TurboTax created a health care calculator to help you find out if you’re eligible for health insurance through a state or federal Marketplace, Medicaid, or Medicare or if you’re already set with your existing health insurance plan.  It will also let you know, if you qualify for a tax credit or subsidy from the government to help you purchase your health insurance.

Check it out to learn how health care reform impacts you so that you can make the best decisions for your health and your wallet.

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2014 is the first year the health care reform law requires you to have health insurance coverage. Most individuals who do not have health insurance will owe a penalty, to be collected by the IRS via your tax return. The penalty starts at $95 in 2014 and increases to $325 in 2015 and to $695 per person by 2016.

On the bright side, individuals who purchase insurance through a health insurance Exchange will be eligible for a tax credit claimed on their 2014 taxes. In order to receive the tax credit for purchasing health insurance from an exchange, you must file a 2014 tax return.

People who have insurance provided by their employer may see that information reported on their W-2 in box 12. If your 2012 W-2 includes this information, don’t worry.  This is for reporting purposes only and does not impact your taxes.

Health insurance exchanges and employers will report information about health insurance coverage to the IRS, so you won’t have to worry about it. In 2014, this reporting requirement will help the IRS figure out if you are eligible for the tax credit in 2014.

You can be sure that TurboTax will be up-to-date with all these healthcare law changes. 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 answer your questions and help you get started on your return. Only TurboTax lets you talk to CPAs, enrolled agents and tax attorneys while you prepare your return, free.

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.

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.

Affordable Care Act

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.

• Small Business Health Care Tax Credit: 4 million small businesses are eligible for a tax credit to help fund insurance for their workers. A small business is defined as those employing 25 or fewer people, and the credit is up to 35% of the coverage cost.
• Changes to the Flexible Spending Account: In 2011 one change that may impact you is that non-prescription (i.e. over the counter) medicines are no longer allowed to be reimbursed by the FSA or you Health Savings Account (HSA). There is a specific waiver that permits insulin to be covered without prescriptions, and eyeglasses, contact lenses, and co-pays/deductibles remain approved.
• Health Coverage for Older Children: Companies are now permitted to cover employee’s children up to age 27. This may appear a bit old at first, but given the job market and students taking time off during their college years, many were left uninsured. This provision helps close that gap.
• Indoor Tanning: A 10% excise tax went into effect July 1,2010. Licensed medical professionals treating skin disorders are exempt from this ‘vanity’ tax.
• Employer-Provided Health Coverage: While not taxable, employers are encouraged to report the value of this benefit to their employees. This is optional for 2011, but required next year.
• The Adoption Credit: The tax credit you can receive for the expenses associated with the adoption of a child is now up to $13,170 per child. Further, this credit is refundable, meaning if your total tax bill was otherwise lower than the credit you qualify for, you will get a check for the amount owed to you. Form 8839 will walk you through the income restrictions and other details to better understand this benefit.

Overall the intent of the Affordable Care Act is to live up to its own name, to reduce and one day eliminate the high numbers of us who are counted as uninsured.