Today the Supreme Court ruled to uphold the current Affordable Care Act law allowing millions of Americans to continue to have access to subsidies to help them pay for health insurance even if they purchase health insurance in the federally run Health Insurance Marketplace.
Tax season 2015 will be the second year you will be required to report your health insurance status on your tax return, and we expect that complying with the Affordable Care Act will be an even more straightforward process this time around.
Here are a few quick tips to help you maximize your tax return if you have Marketplace insurance:
- If you received an advanced premium tax credit or subsidy to help you pay for health insurance, you should update your financial information and status changes by contacting the Marketplace so your tax credit is kept as accurate as possible throughout the year. This will ensure you’re getting as much help as you’re eligible for and will also help you avoid having to pay back any extra tax credits.
- You may also only want to take only half of your subsidy upfront if you are able, so come tax season, you may get the rest of your subsidy back as a tax refund when you file your taxes and there is a substantially lower chance you will have to pay back.
- Finally, if you are uninsured and missed the 2015 open enrollment, under the Affordable Care Act, certain life changes can trigger what is considered a “qualifying life event” that may make you eligible to sign up for health insurance outside of the annual open enrollment period.
As with all tax laws, TurboTax is up to date and has you covered. If you still have questions about the Affordable Care Act and how it impacts you you can get answers at TurboTax Health.