Health Care Health Care Reform and Your Taxes Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by TurboTaxLisa Published Sep 30, 2013 - [Updated Oct 4, 2013] 2 min read 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. Previous Post TurboTax AnswerXchange Gives You Personalized Answers to Your Affordable Care… Next Post Health Insurance Marketplace Opens Today! Written by Lisa Greene-Lewis Lisa has over 20 years of experience in tax preparation. Her success is attributed to being able to interpret tax laws and help clients better understand them. She has held positions as a public auditor, controller, and operations manager. Lisa has appeared on the Steve Harvey Show, the Ellen Show, and major news broadcast to break down tax laws and help taxpayers understand what tax laws mean to them. For Lisa, getting timely and accurate information out to taxpayers to help them keep more of their money is paramount. More from Lisa Greene-Lewis Follow Lisa Greene-Lewis on Twitter. 1,052 responses to “Health Care Reform and Your Taxes” Newer Comments » Can you please attach the link to the marketplace, I currently dont have the link thank you Reply Alan, You can go to http://www.healthcare.gov and get the links to your state Marketplace. You can also find links and additional answers to your specific health insurance questions on http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply If I am a senior and just have medicare, do I have to other insurance? Reply Hi Kathleen, No you do not. If you have Medicare you are covered under the law. Thank you, Lisa Greene-Lewis Reply Hi Lisa , I have 1099 income only . I will buy insurance from exchange without any financial aid . So question is health insurance premium are tax-deductible ? Reply Medical expenses are deductible if they exceed 10% of your adjusted gross income (7.5% if you are 65 or older). As a self-employed individual, you may qualify to deduct your medical insurance premiums even if you don’t itemize deductions. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply Does your age or your health status effect how much your premiums will be? Reply Hi Karen, When you purchase health insurance through the Health Insurance Marketplace lower premiums are based on your income and family size and not on your health or age unless you smoke. For more answers to your specific health insurance questions, go to TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply Im shocked at how much higher the new plans cost. I just used one of the turbotax links for the healthcare calculator and subsidies calculator – and we will qualify for a $300 tax credit if we buy $600/mo insurance. 2 years ago when I priced insurance it was only $200/mo. I think its safe to say this ACA is not at all affordable. Thank you for providing information and links, but this is certainly looking dismal. If I am covered under the Veterens Hospital do I recieve a Tax break Reply Hi Andrew, Sorry if you already covered by a health insurance plan you would not receive a tax credit. This tax credit is only available to those who purchase health insurance in the Health Insurance Marketplace. For more answers to your specific health insurance questions go to TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply thank you for being so informative and helpful. Very well done video- could you pass it along to our government please? Reply What if my agi is only 13500 and I qualify for medical can I still choose a plan that costs more Reply If I live outside of the USA, but I am a USA citizen and don’t receive a W-2 as I am paid in the local countries currency, what do I need to do to avoid a penalty? Reply Hi Jeff, People who live outside the US are not required to have medical insurance and are exempt from the penalty. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply Will I be paying for this insurance monthly or will be taken out of my check Reply So now, I have to pay taxes, pay child support, pay for othe rpeople to sit and get free health insurance, and now I have to pay for health insurance, communism. Reply What if I am married, living seperately, uninsured and my child is on CHIPS medicaid texas?? Reply Hello Lisa, I have a brother that I claim as a dependent. He has no income whatsoever. Does this make me responsible for providing him healthcare? Reply Hi Jim, If your brother is a dependent on your tax return, he is considered a member of your household. You will be responsible for the penalty if he is not covered. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply For adult children (over 26) living with parents, are the parents’ income included in household income for tax subsidy qualifacation for the adult child? Reply If the adult children are dependents on your tax return, they are members of your household and your income will be part of their application. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply Family of two; Ages: 70 & 60; Income: 45000, with half from SS. Does the SS degraded the amount of assistance of the 60 yr. Is coverage firgured after deductions? Reply You can get an estimate of your benefits and answers to your specific health insurance questions at http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply I have a 58 year old sibling who’s been unemployed for years. Doesn’t have any health insurance and doesn’t file taxes. How do I advise him? Reply Without income, he should qualify for Medicaid. He should go to the Marketplace for his state and apply there. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply If in 2014 my employer lays me off in March and my health insurance is covered up till June, will i have to pay a penalty for the other 6 months without health insurance? Reply Hi Dan, You will probably have to pay a penalty for not securing insurance after you are laid off. The exchange will be open to those who have changes in their situations such as lay-offs, births and the like. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply I do not have health insurance because I have been denied a few times because of my health now. Im low income and can’t afford anything to high. How will this affect my taxes? Reply Hi Kyle, I would try again. Part of the expansion under the Affordable Care Act is you cannot be denied coverage for a pre-existing condition. In addition, you may be eligible for Medicaid. You can check insurance eligibility by going to Healthcare.gov. Hopefully you will be able to get insurance and your taxes will not be impacted at all. Those who are required to purchase health insurance and do not by March 31, 2014, will receive a penalty of $95 per adult per year, capping out at $285 per family and about 1% of income if your income is more than $20,000. For more answers to your specific health care questions, visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply i am a disable vet and get my coverage through the veterans admin. how does it affect this Reply Hi Stephen, The Affordable Care Act will not impact you if you already have insurance. It’s only for those who are uninsured. For more answers to your specific health insurance questions, visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply Family of 2; Ages 70 and 60; Family Income: 45000; Since SS is part of the family income, wouldn’t that be penalizing the under 60’s insurance payment? Will the insurance payment be figured before or after deductions? Thanks for any clarification you can give! ! Reply In 2011, Obamacare eliminated my ability to use my health savings account to purchase over-the-counter medication. In 2012 Obamacare slashed my health savings account limit by 50%. As more Obamacare rules roll out, are further cuts to health savings accounts on the way? Reply I do not have insurance through my employer but my daughter has been covered in CHIPS for the past few years. Will she continue to recieve CHIPS or do I need to apply for her under the affordable healthcare act? Will I have the option to choose between the two for her? Reply My wife and I both have insurance offered through our employers. However, my coverage is far superior to what her employer offers, so we don’t utilize hers and I cover her on mine. I have heard this could have penalty repercussions because she isn’t utilizing her companies policy and using mine instead. Is this correct? Reply What is tax credit? Reply Thanks for this excellent info ! Reply WHAT PERCENTAGE OF COPAY’S AND CO INSURANCE CAN BE DED ON MY TAXES? Reply Hi Nanc, Co-pays and co-insurance that you pay can be deducted on your taxes if you itemize your deductions. For 2013, your medical expenses need to exceed 10% of your adjusted gross income, so if your AGI is for example $50,000 then your medical expenses need to be more than $5,000. Individuals 65 and over can still claim medical expenses over 7.5% of adjusted gross income. If you have more health insurance questions you can go to our social community at TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Thank you, Lisa Greene-Lewis Reply will i be able to put my disabled girlfriend on my insurance? she is not on SSDI,still fighting thru a lawyer for. i do claim her on my taxes. Reply Hi George, If you are able to claim her as a dependent on your taxes, you should be able to add her on your insurance. For more answers to your specific health insurance questions, go to TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply My wife is on Medicaid. She is in a nursing Home. She has Medical Insurance from her employment before she retired in 1990 from the Social Security Administration. That coverage is by the Mail Handlers Benefit Plan. The Medical Insurance covered her before she was on Medicaid and I think she still is covered. Medicare automatically put her on United Health Care coverage, as of Nov. 1, 2013. Should she drop the coverage from United Health Care? Reply Hi Lewis, That would be up to you and dependent on if they provide all of the health services your wife requires. Please visit the TurboTaxAnswerXchange.com to get more answers to your specific health insurance questions. Thank you, Lisa Greene-Lewis CPA Reply What is the penalty if I do not get health insurance? Reply Hi Cindy, If you do not get health insurance by March 31, 2014, in 2014 the penalty is $95 per adult in the household and caps at $285 per family for the year or it may be about 1% of your income if the household income is more than $20,000 if single and more than $55,000 for married couples. If you have more questions, please visit our social community at TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply Why is there a penalty? I thought the Supreme Court deemed it a tax? How do you tax something if you do not buy it? I will qualify for financial assistance to afford health care as I work full time but don’t make enough money. Seeing as I will get assistance, will that affect my taxes in the future? Should I expect less back because I’m not paying full price for health insurance? Reply Hi Arin, The amounts applied to your insurance premiums in 2014 will be reconciled on your 2015 taxes. As long as your income that determined your eligibility for the tax credit is not different in 2014, you will not see anything different on your taxes. If your income is less than expected you may receive a bigger credit when you file your 2014 taxes in 2015. If your income is more than expected, you may have to pay some of the credit back when you file in 2015. TurboTax software will be up to date and like with all tax laws will figure out the tax calculations for you so you will not have to worry about figuring this out. If you have more questions, please visit our social community at TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply What if I am native American and my health care is covered by my tribe? Reply Hi John, If you are native American and your health care is covered you don’t need to purchase health insurance and you will not receive a penalty. Thank you, Lisa Greene-Lewis Reply I opened an HSA through my local bank and have a high deductible health policy through my wife’s employer. Are the contributions that I make to the HSA deductible or just the qualifying expenditures that are paid from the account? Reply How is it that you have to buy insurance when you do not have a job and can’t find one and you do not qualify for Medicaid. Reply Hi Lisa, There are exceptions. If you make under the IRS filing requirement (about $10,000) or if the lowest priced plan is more than 8% of your household income you will not be required to purchase health insurance. Read more here https://www.healthcare.gov/exemptions/ If you have additional health care questions, please visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply I currently have insurance through my employer and they pay a portion of my premium which is a benefit. Under the Affordable Care Act will I be taxed on this amount my employer contributes? I understand the amount the employer contributes will now be on my W-2. Reply Hi Brian, No you will not pay taxes on the amount your employer contributes. That amount is an employee benefit provided by your employer. The amount your employer contributes is now reported on your W-2, but it is for reporting purposes only. Thank you, Lisa Greene-Lewis Reply If i am covered by the Veterens Hospital do i still need to purchase health insurance Reply Hi Katherine, If you are already covered, you don’t need to purchase health insurance. Thank you, Lisa Greene-Lewis Reply This is a joke it only told me about programs that have been around for years, this stuff you could already get Reply My husband is covered by Medicare; I am not eligible for Medicare coverage until 2015 and will consider using ACA exchange to purchase however, if I opt not to purchase coverage will both my husband and I face a penalty on our IRS return filed jointly? Reply Hi Christine, Your husband is already considered covered if he continues his Medicare coverage and will not receive a penalty, however you would receive a penalty if you do not purchase health insurance by March 31, 2014. You would pay your penalty when you file your 2014 taxes in 2015. If you have more questions, you can go to our social community at TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply Thank you, Lisa. Clear answer to my vague question! Do we need to save all our receipts if we have an HSA? We also use it for optical and dental, as well as prescriptions. All medical insurance gap items are paid from that account. I fear a lost 11mo. receipt could cause a problem Reply What about if I haven’t worked in this year and I have been a fulltime student in college? My husband has worked parttime and is a fulltime student at the same college I attend. We have earnings of 2,500 for this year for the YTD and well, we don’t have insurance of any kind for our financial struggle. Our kids are covered by Medicaid for the low income we have and well I have a worry about this since I have always had a YTD of 30,000 or more in my joint tax return. This year I am so sad to say this but it is not something to wish upon anyone. If anyone can let me know what penalty I am going to be facing it would be greatly appreciated. Thanks. Reply I am covered by the VA, will I need any other insurance? Reply My parents are on Medicare and do not have a supplement insurance. Will they be required to purchase insurance? Reply Does Turbo Tax know when individuals will begin being taxed on the overall value of their healthcare, employer sponsored or otherwise? Reply I will pay a penalty because this was a free country and should not have to choose between bills and that. Reply If you don’t have insurance and don’t check your exchange, you may be sorry to hear about all the insured people who are paying $70 monthly premiums in states like Washington where we worked hard to set up a great exchange with lots of options. Reply If I already pay for my own health insurance, will I be able to get a tax credit on my 2014 taxes? Thanks, Sharon Reply As a self-employed individual, will the health insurance still be deductible in the same way as it is now or will that change? Reply Is it true all real estate sales beginning in 2014 will be subject to a 3.8% tax? Is this based on the profit, like a capital gain or on the gross sales price. Either way, how did this get into health care? The real estate owners are already hammered paying for public education. Thanks, Scott Reply I want to get coverage, but have not been able to afford it. If I find that I still can’t afford it under the new system, how do I avoid being penalized in my taxes? Reply Check the exchange before you worry. Also, if your state did not proactively set up a health exchange a while back, call your senators and rep and complain. Prices are very competetive for even very low income, older people who are middle income or below. Reply I am an expat living full time in Mexico. I have my health insurance through the Mexican government called Seguro Social. Does this type of insurance meet the new requirements or will I be subject to penalties or fines? Reply Citizens living outside the US are not subject to penalties. The Marketplace only carries insurance for those living in the US and for medical expenses incurred in the US. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply I am covered under the State retirement plan, but the premiums cost me more than my monthly benefit. Am I eligible for a subsidy? Alternately, am I eligible to shop in the Marketplace for new, less expensive coverage? Reply Hi TTL I’m thinking about NOT signing up for ACA! what is my penalty for income of $26,750 per year? Gary B. Reply You should sign up…if you live in a state with a healthy exchange, you may find affordable options. You will likely qualify for a subsidy. What if I am getting married 4/26/14 do I still have to get the insurance? Reply Hi Joy, If you are uninsured and don’t meet exemption requirements, you are required to have health insurance by 3/31/2014. For more answers to your specific health care questions visit http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply If I already have insurance and will not be purchasing through the exchange, will I be able to get a tax credit based on my income? Family of 3 making 55K. Thanks, Jereom Reply Hi Jerome, Unfortunatley, the tax credit is only for those who are eligible and purchase insurance through the Health Insurance Marketplace. If your insurance is self provided and not provided by an employer you can check your options and purchase health insurance through the marketplace and you may be eligible for the tax credit. Thank you, Lisa Greene-Lewis Reply Newer Comments » Leave a ReplyCancel reply Browse Related Articles Health Care The Affordable Care Act Timeline for Individuals and Fa… Health Care What is Obamacare? Health Care Healthcare Reform – Glossary: Key Terms Explained Health Care White House Delays Affordable Care Act Employer Mandate… Health Care Health Reform Law Has New Implications for Consumers an… Health Care What is a Health Care Reform Tax Penalty [Calculator]? Health Care Health Care Reform Timeline: Important Dates You Need … Health Care Health Insurance Marketplace Opens Today! 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Alan, You can go to http://www.healthcare.gov and get the links to your state Marketplace. You can also find links and additional answers to your specific health insurance questions on http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
Hi Kathleen, No you do not. If you have Medicare you are covered under the law. Thank you, Lisa Greene-Lewis Reply
Hi Lisa , I have 1099 income only . I will buy insurance from exchange without any financial aid . So question is health insurance premium are tax-deductible ? Reply
Medical expenses are deductible if they exceed 10% of your adjusted gross income (7.5% if you are 65 or older). As a self-employed individual, you may qualify to deduct your medical insurance premiums even if you don’t itemize deductions. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
Hi Karen, When you purchase health insurance through the Health Insurance Marketplace lower premiums are based on your income and family size and not on your health or age unless you smoke. For more answers to your specific health insurance questions, go to TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
Im shocked at how much higher the new plans cost. I just used one of the turbotax links for the healthcare calculator and subsidies calculator – and we will qualify for a $300 tax credit if we buy $600/mo insurance. 2 years ago when I priced insurance it was only $200/mo. I think its safe to say this ACA is not at all affordable. Thank you for providing information and links, but this is certainly looking dismal.
Hi Andrew, Sorry if you already covered by a health insurance plan you would not receive a tax credit. This tax credit is only available to those who purchase health insurance in the Health Insurance Marketplace. For more answers to your specific health insurance questions go to TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
thank you for being so informative and helpful. Very well done video- could you pass it along to our government please? Reply
What if my agi is only 13500 and I qualify for medical can I still choose a plan that costs more Reply
If I live outside of the USA, but I am a USA citizen and don’t receive a W-2 as I am paid in the local countries currency, what do I need to do to avoid a penalty? Reply
Hi Jeff, People who live outside the US are not required to have medical insurance and are exempt from the penalty. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
So now, I have to pay taxes, pay child support, pay for othe rpeople to sit and get free health insurance, and now I have to pay for health insurance, communism. Reply
Hello Lisa, I have a brother that I claim as a dependent. He has no income whatsoever. Does this make me responsible for providing him healthcare? Reply
Hi Jim, If your brother is a dependent on your tax return, he is considered a member of your household. You will be responsible for the penalty if he is not covered. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
For adult children (over 26) living with parents, are the parents’ income included in household income for tax subsidy qualifacation for the adult child? Reply
If the adult children are dependents on your tax return, they are members of your household and your income will be part of their application. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
Family of two; Ages: 70 & 60; Income: 45000, with half from SS. Does the SS degraded the amount of assistance of the 60 yr. Is coverage firgured after deductions? Reply
You can get an estimate of your benefits and answers to your specific health insurance questions at http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
I have a 58 year old sibling who’s been unemployed for years. Doesn’t have any health insurance and doesn’t file taxes. How do I advise him? Reply
Without income, he should qualify for Medicaid. He should go to the Marketplace for his state and apply there. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
If in 2014 my employer lays me off in March and my health insurance is covered up till June, will i have to pay a penalty for the other 6 months without health insurance? Reply
Hi Dan, You will probably have to pay a penalty for not securing insurance after you are laid off. The exchange will be open to those who have changes in their situations such as lay-offs, births and the like. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
I do not have health insurance because I have been denied a few times because of my health now. Im low income and can’t afford anything to high. How will this affect my taxes? Reply
Hi Kyle, I would try again. Part of the expansion under the Affordable Care Act is you cannot be denied coverage for a pre-existing condition. In addition, you may be eligible for Medicaid. You can check insurance eligibility by going to Healthcare.gov. Hopefully you will be able to get insurance and your taxes will not be impacted at all. Those who are required to purchase health insurance and do not by March 31, 2014, will receive a penalty of $95 per adult per year, capping out at $285 per family and about 1% of income if your income is more than $20,000. For more answers to your specific health care questions, visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
Hi Stephen, The Affordable Care Act will not impact you if you already have insurance. It’s only for those who are uninsured. For more answers to your specific health insurance questions, visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
Family of 2; Ages 70 and 60; Family Income: 45000; Since SS is part of the family income, wouldn’t that be penalizing the under 60’s insurance payment? Will the insurance payment be figured before or after deductions? Thanks for any clarification you can give! ! Reply
In 2011, Obamacare eliminated my ability to use my health savings account to purchase over-the-counter medication. In 2012 Obamacare slashed my health savings account limit by 50%. As more Obamacare rules roll out, are further cuts to health savings accounts on the way? Reply
I do not have insurance through my employer but my daughter has been covered in CHIPS for the past few years. Will she continue to recieve CHIPS or do I need to apply for her under the affordable healthcare act? Will I have the option to choose between the two for her? Reply
My wife and I both have insurance offered through our employers. However, my coverage is far superior to what her employer offers, so we don’t utilize hers and I cover her on mine. I have heard this could have penalty repercussions because she isn’t utilizing her companies policy and using mine instead. Is this correct? Reply
Hi Nanc, Co-pays and co-insurance that you pay can be deducted on your taxes if you itemize your deductions. For 2013, your medical expenses need to exceed 10% of your adjusted gross income, so if your AGI is for example $50,000 then your medical expenses need to be more than $5,000. Individuals 65 and over can still claim medical expenses over 7.5% of adjusted gross income. If you have more health insurance questions you can go to our social community at TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Thank you, Lisa Greene-Lewis Reply
will i be able to put my disabled girlfriend on my insurance? she is not on SSDI,still fighting thru a lawyer for. i do claim her on my taxes. Reply
Hi George, If you are able to claim her as a dependent on your taxes, you should be able to add her on your insurance. For more answers to your specific health insurance questions, go to TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
My wife is on Medicaid. She is in a nursing Home. She has Medical Insurance from her employment before she retired in 1990 from the Social Security Administration. That coverage is by the Mail Handlers Benefit Plan. The Medical Insurance covered her before she was on Medicaid and I think she still is covered. Medicare automatically put her on United Health Care coverage, as of Nov. 1, 2013. Should she drop the coverage from United Health Care? Reply
Hi Lewis, That would be up to you and dependent on if they provide all of the health services your wife requires. Please visit the TurboTaxAnswerXchange.com to get more answers to your specific health insurance questions. Thank you, Lisa Greene-Lewis CPA Reply
Hi Cindy, If you do not get health insurance by March 31, 2014, in 2014 the penalty is $95 per adult in the household and caps at $285 per family for the year or it may be about 1% of your income if the household income is more than $20,000 if single and more than $55,000 for married couples. If you have more questions, please visit our social community at TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
Why is there a penalty? I thought the Supreme Court deemed it a tax? How do you tax something if you do not buy it?
I will qualify for financial assistance to afford health care as I work full time but don’t make enough money. Seeing as I will get assistance, will that affect my taxes in the future? Should I expect less back because I’m not paying full price for health insurance? Reply
Hi Arin, The amounts applied to your insurance premiums in 2014 will be reconciled on your 2015 taxes. As long as your income that determined your eligibility for the tax credit is not different in 2014, you will not see anything different on your taxes. If your income is less than expected you may receive a bigger credit when you file your 2014 taxes in 2015. If your income is more than expected, you may have to pay some of the credit back when you file in 2015. TurboTax software will be up to date and like with all tax laws will figure out the tax calculations for you so you will not have to worry about figuring this out. If you have more questions, please visit our social community at TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
Hi John, If you are native American and your health care is covered you don’t need to purchase health insurance and you will not receive a penalty. Thank you, Lisa Greene-Lewis Reply
I opened an HSA through my local bank and have a high deductible health policy through my wife’s employer. Are the contributions that I make to the HSA deductible or just the qualifying expenditures that are paid from the account? Reply
How is it that you have to buy insurance when you do not have a job and can’t find one and you do not qualify for Medicaid. Reply
Hi Lisa, There are exceptions. If you make under the IRS filing requirement (about $10,000) or if the lowest priced plan is more than 8% of your household income you will not be required to purchase health insurance. Read more here https://www.healthcare.gov/exemptions/ If you have additional health care questions, please visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
I currently have insurance through my employer and they pay a portion of my premium which is a benefit. Under the Affordable Care Act will I be taxed on this amount my employer contributes? I understand the amount the employer contributes will now be on my W-2. Reply
Hi Brian, No you will not pay taxes on the amount your employer contributes. That amount is an employee benefit provided by your employer. The amount your employer contributes is now reported on your W-2, but it is for reporting purposes only. Thank you, Lisa Greene-Lewis Reply
Hi Katherine, If you are already covered, you don’t need to purchase health insurance. Thank you, Lisa Greene-Lewis Reply
This is a joke it only told me about programs that have been around for years, this stuff you could already get Reply
My husband is covered by Medicare; I am not eligible for Medicare coverage until 2015 and will consider using ACA exchange to purchase however, if I opt not to purchase coverage will both my husband and I face a penalty on our IRS return filed jointly? Reply
Hi Christine, Your husband is already considered covered if he continues his Medicare coverage and will not receive a penalty, however you would receive a penalty if you do not purchase health insurance by March 31, 2014. You would pay your penalty when you file your 2014 taxes in 2015. If you have more questions, you can go to our social community at TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
Do we need to save all our receipts if we have an HSA? We also use it for optical and dental, as well as prescriptions. All medical insurance gap items are paid from that account. I fear a lost 11mo. receipt could cause a problem Reply
What about if I haven’t worked in this year and I have been a fulltime student in college? My husband has worked parttime and is a fulltime student at the same college I attend. We have earnings of 2,500 for this year for the YTD and well, we don’t have insurance of any kind for our financial struggle. Our kids are covered by Medicaid for the low income we have and well I have a worry about this since I have always had a YTD of 30,000 or more in my joint tax return. This year I am so sad to say this but it is not something to wish upon anyone. If anyone can let me know what penalty I am going to be facing it would be greatly appreciated. Thanks. Reply
My parents are on Medicare and do not have a supplement insurance. Will they be required to purchase insurance? Reply
Does Turbo Tax know when individuals will begin being taxed on the overall value of their healthcare, employer sponsored or otherwise? Reply
I will pay a penalty because this was a free country and should not have to choose between bills and that. Reply
If you don’t have insurance and don’t check your exchange, you may be sorry to hear about all the insured people who are paying $70 monthly premiums in states like Washington where we worked hard to set up a great exchange with lots of options. Reply
If I already pay for my own health insurance, will I be able to get a tax credit on my 2014 taxes? Thanks, Sharon Reply
As a self-employed individual, will the health insurance still be deductible in the same way as it is now or will that change? Reply
Is it true all real estate sales beginning in 2014 will be subject to a 3.8% tax? Is this based on the profit, like a capital gain or on the gross sales price. Either way, how did this get into health care? The real estate owners are already hammered paying for public education. Thanks, Scott Reply
I want to get coverage, but have not been able to afford it. If I find that I still can’t afford it under the new system, how do I avoid being penalized in my taxes? Reply
Check the exchange before you worry. Also, if your state did not proactively set up a health exchange a while back, call your senators and rep and complain. Prices are very competetive for even very low income, older people who are middle income or below. Reply
I am an expat living full time in Mexico. I have my health insurance through the Mexican government called Seguro Social. Does this type of insurance meet the new requirements or will I be subject to penalties or fines? Reply
Citizens living outside the US are not subject to penalties. The Marketplace only carries insurance for those living in the US and for medical expenses incurred in the US. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
I am covered under the State retirement plan, but the premiums cost me more than my monthly benefit. Am I eligible for a subsidy? Alternately, am I eligible to shop in the Marketplace for new, less expensive coverage? Reply
Hi TTL I’m thinking about NOT signing up for ACA! what is my penalty for income of $26,750 per year? Gary B. Reply
You should sign up…if you live in a state with a healthy exchange, you may find affordable options. You will likely qualify for a subsidy.
Hi Joy, If you are uninsured and don’t meet exemption requirements, you are required to have health insurance by 3/31/2014. For more answers to your specific health care questions visit http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
If I already have insurance and will not be purchasing through the exchange, will I be able to get a tax credit based on my income? Family of 3 making 55K. Thanks, Jereom Reply
Hi Jerome, Unfortunatley, the tax credit is only for those who are eligible and purchase insurance through the Health Insurance Marketplace. If your insurance is self provided and not provided by an employer you can check your options and purchase health insurance through the marketplace and you may be eligible for the tax credit. Thank you, Lisa Greene-Lewis Reply