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” « Older Comments Newer Comments » Thanks for the information, I learned some things I wasn’t aware of, and it made me feel better about certain issues. Reply What, if any, changes to HSA will occur in 2014? Reply Hi Kevin, Changes to HSAs already occured and there are no other changes that will occur in 2014. Starting in 2011, the cost of over-the-counter medicine could not be reimbursed unless you get a prescription from your doctor. The penalty for using your HSA for noneligible medical expenses increased from 20% to 10%. For more answers to your specific health care questions please visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply I’m in a situation like Lisa’s above–do not have job and can’t find one but don’t qualify for medicaid (at least not up until now). I’m interested in acquiring insurance. Can I just speculate that I might find work next year and it might be in a certain range so that I can pick the entry level plan being offered? I’m single with no dependents and only managed to make around $10k this year; next year, who knows. Would I qualify for medicaid instead? Also, I share an apartment with my boyfriend (both of us on the lease) but I pay my half out of my savings. Is he considered part of “my household”? We share all expenses but have no relation to each other otherwise. Reply If you live in a state that has medicaid expansion, you may qualify now. Talk to a representative from the exhange. Reply My husband is under the impression that the amount his employer contributes to our insurance will now be considered income. Is that true? Is that something his employer can decide on? Reply Hi Janice, That is not true. Your employer provided benefits will remain the same as they were before. The Affordable Care Act only charges a tax penalty to those required to have health insurance in 2014 and don’t do so. For more specific questions regarding your health care needs, please visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply Does the subsidy go by your 2013 income or 2014 income? Also I have been laid off since June 2013 will this have an effect on the subsidy? How do I figure my annual income for this year? Reply Hi Judy, The subsidy is based off of your estimated 2014 income. https://ttlc.intuit.com/health-care/1897708-does-your-2013-income-matter-at-all-or-is-it-exclusively-2014-income-to-qualify-for-health-premium-subsidy Ashley Reply I am 60 and would like to retire at 62. I will not be eligible for Medicare yet, and my employer health insurance will stop. What are my options? I’m completely confused about the years between retiring at 62 and becoming eligible for Medicare. Reply Obamacare is a pile of trash. What more can we do to repeal it? Reply I have been under heath care from my creator for most of my 40+ years of adulthood thru faith in him and do not even have a doctor because of it. He does not push drugs nor hang me on them that compromise the immune system he gave me because his care is not a practice. I do not want to do this because it’s against the faith I have in him, and have not had any needs for it because they have been met by him. what’s the penalties I will face because of this? Reply I looked at the exchange and was in sticker shock and I was looking for my son, how can the cost be so high and for forced to buy I don’t understand and he was under a poverty guidline and it was still high, Reply If you live in a state that didn’t work to set up a good exchange, this can happen. Washington has great, affordable options for people who take silver plans and are truly middle class or lower. Reply With Obamacare being over 5,000 pages long and it only recently being made public, how can Turbo Tax assure its users that it understands the implications this bill will have on its users filing in different tax brackets? Also, what portions of the 5000 page bill is Turbo Tax most focused on when the Supreme Court has found the Bill a tax? Reply 5,000? It’s now over 18,000 pages of trash. Reply My employer contributes towards my medical insurance, will I be taxed on the amount they contribute? Reply Hi, No you will not be taxed on the amount your employer provides towards your medical insurance. You will see the amount they contribute on your W-2 for reporting purposes only. For more answers to your specific health care questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply My employer contributes towards my medical insurance, does this mean I will have to pay taxes on the part they contribute? Reply Thank you for your concise answers and information. My husband is in the electrical union and is considered in a cadillac health plan. Will we have to add the benefit into our income for tax purposes. The insurance is free but considered as part of his total hourly compensation. Reply How will the penalty be collected? 1040 line item that adjusts the total due? Or a separate tax form? Reply I have a 23yo that I still claim as a dependent on my taxes and I carry on my employer provided insurance. If she should opt to enroll on an insurance plan within the Market Place, does this mean I could no longer claim her as a dependent on my taxes? Would she get a tax break on her taxes when she files with me still carrying her as a dependent on mine due to her low income? Will I get a tax break under this scenerio? Reply I would think no. If she gets her own insurance there is no more break for her. As a dependent on your taxes yes. As far as medical for her no I don’t think so . My suggestion is to keep her under your plan til age 26 that’s the best bet at this point, unless your insurance plan is not very good coverage. Reply I am now 61 ins is way beyond what i can do, one co wanted 350 $ a month, with a very high deducatble.. (they are gonna get you with this) and only one of us is working, we need to pay rent and eat, so dont know what to do. yes we need to get ins,,,but at 61 its hard to find work, Reply Do you qualify for a silver plan that is subsidized? If your state set up an exchange of its own like mine did, you should find much cheaper options. Reply What if I make less than 20k a year and don’t want to participate in government subsidized health care – will I still be required to pay the $95 penalty? Reply Yep most likely. We will sure find out Reply Yeah, but you could qualify for catastrophic coverage for little to no annual premium. It would be irresponsible to not check and just stay uninsured. A risk if you have an accident. I had a terrible one in my 20s uninsured and went bankrupt. It cost the taxpayers a whole lot. Shame on me. Reply How will the government track whether you have health care insurance. Will you be sent an IRS form similar to a 1099 from your insurance company to file with your taxes???? Reply It states: The Affordable Care Act requires that all Americans (with a few exceptions) have health insurance starting in 2014. My question is: who are the exceptions? Why are those people or groups exempt? Reply Medicare recipients who qualify for medicaid are exceptions as are people with no income. Reply I mean medicare recipients, all. But people should check if they are low income on Medicare if their state expanded Medicaid. I currently buy insurance through my former employer (COBRA). If I buy through the exchange will I be eligible for the subsidy if my income is below the cutoff? Reply Yes, Cobra does not count unless it is a premium less than 9.5% of your income. Reply How do we prove that we have insurance? I have a private policy in Spain, where I’m living right now. I’m still paying taxes in the USA. Reply Hi Leslie, Those living outside the US are exempt from having to purchase insurance, so you will not need to prove you have coverage. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply I no that illegal immigrants are NOT qualified or need to apply under ACA, but my question is if they are illegal and still pay taxes will they be charged the penalty even though they are not allowed to apply under ACA? Reply Illegals will still get free health care like they always have . By going to the emergency room. It is illegal for a hospital to deny treatment to anyone if they have no insurance Reply Well, if they are illegal and paying taxes, they are under false papers. So they will be taxed according to their falsified work documents. If you are a legal immigrant, this won’t be a problem Reply Open enrollment at my place of employment is in January, which I will be signing up for, but what about children? I, like many, can barely afford to cover myself. My child already has coverage under his father’s insurance through court order. Will I be penalized on my taxes if do not cover him through my insurance? Reply Speak with your local health exchange representatives. You can find them if you live anywhere trying to help people. If not, it is worth the trip to a metro area. Even your premiums may be too high for you. So it is worth it to find out. Reply Hello, I am currenlty unemployed and looking to be reemployed….but uncertain how long it may take…I am starting my own business meanwhile… therefore, me and my family are not covered anymore by any employer insurance. While not re-employed I need some sort of temporary coverage, but if not reemployed will need to keep this long time, can I get an insurance “while unemployed?” Reply Hi, You can sign up now. If your state gov’t voted for medicaid expansion, they will just put you in that as of Jan 1. If your situation changes, go online and update your income right away and you will be shown the silver options you have. Washington state has great options! Reply I have visited the exchange for my state and the relatively affordable monthly policies have very high deductibles ($10,000/yr). and run around $200/month. I found nothing with the low $500) deductible I have now at any price. So let me get this straight – I pay a minimum of $2400/yr and STILL get NOTHING until I’ve forked out $10,000? I’ll stay with my employer plan even though I get no tax break for it although that seems rather unfair. Kinda makes it sound like just another government handout… Reply If your state did not create their own health exchange (like Washington and California) in time, you have only the federal plans for your state which had little competition. Washington has plans with higher monthly, low deductibles and very cheap with higher deductables and low to zero premiums depending on income. Reply I mean washington and cal did create them and have good prices. NOBODY should be forced to buy or have health insurance. Get it? Got it? Good! Reply My mother in-law lives with us and she does’nt have health insurance, she is 76 yrs old but she never worked in the US, how can we get health insurance for her? Reply I currently have very high cost health insurance, my employer does not offer it through work. I was informed that my premiums are going to increase almost $82 by next March which puts it too high to pay (over $300 per month with a $5000 deductible). Can I or should I, cancel what I have and sign up for this Obamacare? I am so confused! Please help! Reply You don’t need to cancel. If you are self insured, you can check the health exchange and see what they offer. Your insurance won’t change til January. I have Cobra and I qualify. When it asks if you have insurance, self paid plans don’t count. If you can find a better deal on the exchange, and if you are in a prepared state you will, you can take it and dump your insurance as of Jan 1. Reply My daughter and I have health care through the state (Badger Care). Does this count, or do I have to get additional health care? Reply Check with a local health exchange advisor. If Medicaid expanded in your state, you may have a completely different program to sign up for. It is better. Reply My mother-in-law (66 years old) has resently had many helth problems that caused her to quit working as a waitress. She has no money and can not live on her own.She dose collect $700 from SS. We have moved her in with us. Can I clam her on my taxes as a dependent? If so can I add her to my insurance? Reply Call a local health exchange advisor. She may qualify for Medicaid. Reply Does it affect people that go through the VA? Reply No, you are insured. Reply Hello! Im a single mom I have health insurance thru my work which is very expensive but my 3 children are covered under Medicare will I be penalized or made to get them other insurance? Reply You may qualify under the new medicaid expansion or get a lower subsidized insurance. Check with a local health exhgange advisor. Reply Good Morning, I am a mother of 4 children. My husband and I are losing our jobs because it is giong oversees. We are going to be just over the Family health plus, and we dont make enough to pay out of pocket. How taxes are going to be highly affected because of this decision in health care ? What do we do? Reply I have been covered by my husband’s insurance for years now. Now we are being told that if my employer offers insurance I will be required to take that or my husband will be charged additional money over and above the premiums for employee plus one. Would any of these extra charges be deductible if I/we itemize? Is this something that is going to be more common? Reply When on Medicare we need to purchase another insurance, will That one be able to get credit on the taxes? My husband and I have the insurance through my work. Thank you for the help. Reply My wife and I are not offered insurance threw work, we pay out of our pocket do we get a tax credit on our monthly payments to have insurance on our family? Reply Mark, Only insurance purchased through the Marketplace or exchange qualifies for the tax credits. If you keep your current policy, you will not qualify for the credit. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply This is the best information I have heard. I agree that you should help the government explain it to the masses. I think the part I don’t understand is why businesses are canceling insurance. Are they expecting premiums to rise because of the Affordable Care Act. Thanks for your help. Reply What is the dollar cut off for a high benefit or so called “Cadillac plans” to have to pay an additional federal tax on Reply Hi, My 20 year old grandson is unemployed and has been so far all year. His mom is employed and could add him to her policy which would cover him in 2014. It is not a good policy with a large deductible and she really cannot afford the additional large premium. Is he eligible to purchase through the exchange? Thank you. Reply I am under the care of an oncologist. How will I know when I choose a plan whether my doctors and prescriptions will be covered. Reply I am over 65 and enrolled in Medicare Part A only. Is this sufficient to avoid the tax for non-insureds? How will the government determine who does and who doesn’t have insurance? Reply Hi Alan, Yes, if you have Medicare, you are covered under the current law and will not receive a tax penalty. https://ttlc.intuit.com/health-care/1896241-i-have-medicare Ashley Reply We have insurance through an employer however it is VERY unaffordable. Can we purchase Marketplace Insurance? Reply Hi Amber, If you have employer provided insurance you can purchase in the Marketplace, but you may not get assistance with your premiums if your employer is offering affordable coverage meaning the share you pay for insurance is no more than 9.5% of annual household income and your employer provided plan meets minimum value (designed to pay at least 60% of the total cost of medical services). Your employer can tell you if the insurance provided meets these standards. To get more answers to your specific health care questions, you can go to TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply my daughter has 2 children one of them is 20 years and in Cosmetology through student loans… the other is in high school. she works for athe unified school district as a preschool teacher he incoe is 50K a year. Will she get subsidy payments Reply If you have cancer can you still get affordable insurance through the Marketplace? Reply Hi Robert, Under the Affordable Care Act, one of the protections under the act requires insurance companies to cover individuals even if they have a pre-existing condition. You can read more here https://www.healthcare.gov/how-does-the-health-care-law-protect-me/#part=1 If you have additional specific health care questions, you can visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply it only means they have to OFFER you coverage, however it doesn’t guarantee that it will have affordable premiums or good deductibles or out of pocket expenses.. this is turning out to not be the case. If you get cancer while on these plans they DO NOT cover the drugs needed to treat it. Reply I can get insurance through my employer for my entire family. But I cannot afford it. Their open enrollment doesn’t begin until jan with an effective date of feb 1. How for I determine if I can qualify to purchase through the marketplace and qualify for a subsidy. Thanks. Reply Hi Jon, You can go to TurboTaxAnswerXchange.com and answer a few questions and you will find out if you are eligible for insurance and a subsidy through the Marketplace. Thank you, Lisa Greene-Lewis Reply I currently do not have health insurance. However, I work for a large corporation that stated they will be giving health insurance to its employees a year later since the employer mandate got delayed a year. My question is, will I face a penalty if I simply wait for my job insurance? Or I am exempt since my job will be giving me healthcare a year from now? Reply Hi Jean, The employer mandate was extended giving employers another year to get health insurance, however the individual mandate was not extended, which requires uninsured individuals to have insurance by March 31, 2014 so you will not be exempt. For more answers to your specific health care questions, visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply I’m retired and buy health insurance through my former employer. It is still quite expensive though. Can I get assistance with premiums or in the form of a tax deduction? Reply Hi Mary, You will not be eligible for assistance unless you purchase health insurance in the Health Insurance Marketplace. You can deduct your health insurance premiums if you itemize your tax deductions and your medical expenses exceed 10% of your adjusted gross income (7.5% if 65 and over). If you have more questions on specific health care questions, you can also visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply I receive social security, plus took a withdrawal from an IRA, and in 2013 had some unemployment benefits. What counts as income? What’s exempt? Reply Hi Marjorie, The Marketplace will count unemployment, non-taxable social security and your income from your IRA withdrawl. For additional health care questions, please visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply what if I have VA health care? Reply Hey Tom, If you have VA health care, you are not required to purchase health insurance under the Affordable Care Act. For additional questions regarding your specific health care, please visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply Our small business (>10 employees) will only get the health insurance tax credit if we go through SHOP. (We get about $1000 credit annually right now) We pay well and cover the majority of our employees insurance premium (66%) It looks like we might as well drop coverage so that a couple of our employees who would be eligible for subsidies by going through the marketplace can save some money (large family, spouse’s jobs don’t provide health insurance, our employee is primary bread winner, and earns about 42K, which is well above average for the market, spouse earns less, about 24K) Am I misunderstanding? The premiums through SHOP will be higher than we currently pay, because our employees are older than 27. Our long time, older employees will have a $200+ a month increase in premium according to the listed rates, but will likely not be eligible for a subsidy. Looks like workers will pay more (taxes pay the subsidies) for insurance in the long run, no matter what. Do I misunderstand? Am I the only one in this dilemma? If I keep my plan, this one gets no subsidy and I get no tax credit (and as a majority they pay less overall) or I can drop my plan and let all employees face higher premiums! Reply If you get fired and lose your healthcare for any amount of time, will you have to pay the penalty for not having insurance. Because it takes 90 days for new insurance to kick in when switching jobs etc… Reply Hi Natalie, Since that is considered a life event or change, you are given a grace period and you can purchase insurance through the Health Insurance Marketplace outside of the open enrollment period (October 1, 2013 – March 31, 2014). If you have a gap in coverage of less than 3 months you are exempt from the penalty. For more answers to your specific health care questions please visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply « Older Comments 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! Health Care Affordable Care Act Update: Enrollment and Coverage Dea… Health Care Demystifying the Affordable Care Act
Thanks for the information, I learned some things I wasn’t aware of, and it made me feel better about certain issues. Reply
Hi Kevin, Changes to HSAs already occured and there are no other changes that will occur in 2014. Starting in 2011, the cost of over-the-counter medicine could not be reimbursed unless you get a prescription from your doctor. The penalty for using your HSA for noneligible medical expenses increased from 20% to 10%. For more answers to your specific health care questions please visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
I’m in a situation like Lisa’s above–do not have job and can’t find one but don’t qualify for medicaid (at least not up until now). I’m interested in acquiring insurance. Can I just speculate that I might find work next year and it might be in a certain range so that I can pick the entry level plan being offered? I’m single with no dependents and only managed to make around $10k this year; next year, who knows. Would I qualify for medicaid instead? Also, I share an apartment with my boyfriend (both of us on the lease) but I pay my half out of my savings. Is he considered part of “my household”? We share all expenses but have no relation to each other otherwise. Reply
If you live in a state that has medicaid expansion, you may qualify now. Talk to a representative from the exhange. Reply
My husband is under the impression that the amount his employer contributes to our insurance will now be considered income. Is that true? Is that something his employer can decide on? Reply
Hi Janice, That is not true. Your employer provided benefits will remain the same as they were before. The Affordable Care Act only charges a tax penalty to those required to have health insurance in 2014 and don’t do so. For more specific questions regarding your health care needs, please visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
Does the subsidy go by your 2013 income or 2014 income? Also I have been laid off since June 2013 will this have an effect on the subsidy? How do I figure my annual income for this year? Reply
Hi Judy, The subsidy is based off of your estimated 2014 income. https://ttlc.intuit.com/health-care/1897708-does-your-2013-income-matter-at-all-or-is-it-exclusively-2014-income-to-qualify-for-health-premium-subsidy Ashley Reply
I am 60 and would like to retire at 62. I will not be eligible for Medicare yet, and my employer health insurance will stop. What are my options? I’m completely confused about the years between retiring at 62 and becoming eligible for Medicare. Reply
I have been under heath care from my creator for most of my 40+ years of adulthood thru faith in him and do not even have a doctor because of it. He does not push drugs nor hang me on them that compromise the immune system he gave me because his care is not a practice. I do not want to do this because it’s against the faith I have in him, and have not had any needs for it because they have been met by him. what’s the penalties I will face because of this? Reply
I looked at the exchange and was in sticker shock and I was looking for my son, how can the cost be so high and for forced to buy I don’t understand and he was under a poverty guidline and it was still high, Reply
If you live in a state that didn’t work to set up a good exchange, this can happen. Washington has great, affordable options for people who take silver plans and are truly middle class or lower. Reply
With Obamacare being over 5,000 pages long and it only recently being made public, how can Turbo Tax assure its users that it understands the implications this bill will have on its users filing in different tax brackets? Also, what portions of the 5000 page bill is Turbo Tax most focused on when the Supreme Court has found the Bill a tax? Reply
My employer contributes towards my medical insurance, will I be taxed on the amount they contribute? Reply
Hi, No you will not be taxed on the amount your employer provides towards your medical insurance. You will see the amount they contribute on your W-2 for reporting purposes only. For more answers to your specific health care questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
My employer contributes towards my medical insurance, does this mean I will have to pay taxes on the part they contribute? Reply
Thank you for your concise answers and information. My husband is in the electrical union and is considered in a cadillac health plan. Will we have to add the benefit into our income for tax purposes. The insurance is free but considered as part of his total hourly compensation. Reply
How will the penalty be collected? 1040 line item that adjusts the total due? Or a separate tax form? Reply
I have a 23yo that I still claim as a dependent on my taxes and I carry on my employer provided insurance. If she should opt to enroll on an insurance plan within the Market Place, does this mean I could no longer claim her as a dependent on my taxes? Would she get a tax break on her taxes when she files with me still carrying her as a dependent on mine due to her low income? Will I get a tax break under this scenerio? Reply
I would think no. If she gets her own insurance there is no more break for her. As a dependent on your taxes yes. As far as medical for her no I don’t think so . My suggestion is to keep her under your plan til age 26 that’s the best bet at this point, unless your insurance plan is not very good coverage. Reply
I am now 61 ins is way beyond what i can do, one co wanted 350 $ a month, with a very high deducatble.. (they are gonna get you with this) and only one of us is working, we need to pay rent and eat, so dont know what to do. yes we need to get ins,,,but at 61 its hard to find work, Reply
Do you qualify for a silver plan that is subsidized? If your state set up an exchange of its own like mine did, you should find much cheaper options. Reply
What if I make less than 20k a year and don’t want to participate in government subsidized health care – will I still be required to pay the $95 penalty? Reply
Yeah, but you could qualify for catastrophic coverage for little to no annual premium. It would be irresponsible to not check and just stay uninsured. A risk if you have an accident. I had a terrible one in my 20s uninsured and went bankrupt. It cost the taxpayers a whole lot. Shame on me. Reply
How will the government track whether you have health care insurance. Will you be sent an IRS form similar to a 1099 from your insurance company to file with your taxes???? Reply
It states: The Affordable Care Act requires that all Americans (with a few exceptions) have health insurance starting in 2014. My question is: who are the exceptions? Why are those people or groups exempt? Reply
I mean medicare recipients, all. But people should check if they are low income on Medicare if their state expanded Medicaid.
I currently buy insurance through my former employer (COBRA). If I buy through the exchange will I be eligible for the subsidy if my income is below the cutoff? Reply
How do we prove that we have insurance? I have a private policy in Spain, where I’m living right now. I’m still paying taxes in the USA. Reply
Hi Leslie, Those living outside the US are exempt from having to purchase insurance, so you will not need to prove you have coverage. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
I no that illegal immigrants are NOT qualified or need to apply under ACA, but my question is if they are illegal and still pay taxes will they be charged the penalty even though they are not allowed to apply under ACA? Reply
Illegals will still get free health care like they always have . By going to the emergency room. It is illegal for a hospital to deny treatment to anyone if they have no insurance Reply
Well, if they are illegal and paying taxes, they are under false papers. So they will be taxed according to their falsified work documents. If you are a legal immigrant, this won’t be a problem Reply
Open enrollment at my place of employment is in January, which I will be signing up for, but what about children? I, like many, can barely afford to cover myself. My child already has coverage under his father’s insurance through court order. Will I be penalized on my taxes if do not cover him through my insurance? Reply
Speak with your local health exchange representatives. You can find them if you live anywhere trying to help people. If not, it is worth the trip to a metro area. Even your premiums may be too high for you. So it is worth it to find out. Reply
Hello, I am currenlty unemployed and looking to be reemployed….but uncertain how long it may take…I am starting my own business meanwhile… therefore, me and my family are not covered anymore by any employer insurance. While not re-employed I need some sort of temporary coverage, but if not reemployed will need to keep this long time, can I get an insurance “while unemployed?” Reply
Hi, You can sign up now. If your state gov’t voted for medicaid expansion, they will just put you in that as of Jan 1. If your situation changes, go online and update your income right away and you will be shown the silver options you have. Washington state has great options! Reply
I have visited the exchange for my state and the relatively affordable monthly policies have very high deductibles ($10,000/yr). and run around $200/month. I found nothing with the low $500) deductible I have now at any price. So let me get this straight – I pay a minimum of $2400/yr and STILL get NOTHING until I’ve forked out $10,000? I’ll stay with my employer plan even though I get no tax break for it although that seems rather unfair. Kinda makes it sound like just another government handout… Reply
If your state did not create their own health exchange (like Washington and California) in time, you have only the federal plans for your state which had little competition. Washington has plans with higher monthly, low deductibles and very cheap with higher deductables and low to zero premiums depending on income. Reply
My mother in-law lives with us and she does’nt have health insurance, she is 76 yrs old but she never worked in the US, how can we get health insurance for her? Reply
I currently have very high cost health insurance, my employer does not offer it through work. I was informed that my premiums are going to increase almost $82 by next March which puts it too high to pay (over $300 per month with a $5000 deductible). Can I or should I, cancel what I have and sign up for this Obamacare? I am so confused! Please help! Reply
You don’t need to cancel. If you are self insured, you can check the health exchange and see what they offer. Your insurance won’t change til January. I have Cobra and I qualify. When it asks if you have insurance, self paid plans don’t count. If you can find a better deal on the exchange, and if you are in a prepared state you will, you can take it and dump your insurance as of Jan 1. Reply
My daughter and I have health care through the state (Badger Care). Does this count, or do I have to get additional health care? Reply
Check with a local health exchange advisor. If Medicaid expanded in your state, you may have a completely different program to sign up for. It is better. Reply
My mother-in-law (66 years old) has resently had many helth problems that caused her to quit working as a waitress. She has no money and can not live on her own.She dose collect $700 from SS. We have moved her in with us. Can I clam her on my taxes as a dependent? If so can I add her to my insurance? Reply
Hello! Im a single mom I have health insurance thru my work which is very expensive but my 3 children are covered under Medicare will I be penalized or made to get them other insurance? Reply
You may qualify under the new medicaid expansion or get a lower subsidized insurance. Check with a local health exhgange advisor. Reply
Good Morning, I am a mother of 4 children. My husband and I are losing our jobs because it is giong oversees. We are going to be just over the Family health plus, and we dont make enough to pay out of pocket. How taxes are going to be highly affected because of this decision in health care ? What do we do? Reply
I have been covered by my husband’s insurance for years now. Now we are being told that if my employer offers insurance I will be required to take that or my husband will be charged additional money over and above the premiums for employee plus one. Would any of these extra charges be deductible if I/we itemize? Is this something that is going to be more common? Reply
When on Medicare we need to purchase another insurance, will That one be able to get credit on the taxes? My husband and I have the insurance through my work. Thank you for the help. Reply
My wife and I are not offered insurance threw work, we pay out of our pocket do we get a tax credit on our monthly payments to have insurance on our family? Reply
Mark, Only insurance purchased through the Marketplace or exchange qualifies for the tax credits. If you keep your current policy, you will not qualify for the credit. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
This is the best information I have heard. I agree that you should help the government explain it to the masses. I think the part I don’t understand is why businesses are canceling insurance. Are they expecting premiums to rise because of the Affordable Care Act. Thanks for your help. Reply
What is the dollar cut off for a high benefit or so called “Cadillac plans” to have to pay an additional federal tax on Reply
Hi, My 20 year old grandson is unemployed and has been so far all year. His mom is employed and could add him to her policy which would cover him in 2014. It is not a good policy with a large deductible and she really cannot afford the additional large premium. Is he eligible to purchase through the exchange? Thank you. Reply
I am under the care of an oncologist. How will I know when I choose a plan whether my doctors and prescriptions will be covered. Reply
I am over 65 and enrolled in Medicare Part A only. Is this sufficient to avoid the tax for non-insureds? How will the government determine who does and who doesn’t have insurance? Reply
Hi Alan, Yes, if you have Medicare, you are covered under the current law and will not receive a tax penalty. https://ttlc.intuit.com/health-care/1896241-i-have-medicare Ashley Reply
We have insurance through an employer however it is VERY unaffordable. Can we purchase Marketplace Insurance? Reply
Hi Amber, If you have employer provided insurance you can purchase in the Marketplace, but you may not get assistance with your premiums if your employer is offering affordable coverage meaning the share you pay for insurance is no more than 9.5% of annual household income and your employer provided plan meets minimum value (designed to pay at least 60% of the total cost of medical services). Your employer can tell you if the insurance provided meets these standards. To get more answers to your specific health care questions, you can go to TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
my daughter has 2 children one of them is 20 years and in Cosmetology through student loans… the other is in high school. she works for athe unified school district as a preschool teacher he incoe is 50K a year. Will she get subsidy payments Reply
Hi Robert, Under the Affordable Care Act, one of the protections under the act requires insurance companies to cover individuals even if they have a pre-existing condition. You can read more here https://www.healthcare.gov/how-does-the-health-care-law-protect-me/#part=1 If you have additional specific health care questions, you can visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
it only means they have to OFFER you coverage, however it doesn’t guarantee that it will have affordable premiums or good deductibles or out of pocket expenses.. this is turning out to not be the case.
I can get insurance through my employer for my entire family. But I cannot afford it. Their open enrollment doesn’t begin until jan with an effective date of feb 1. How for I determine if I can qualify to purchase through the marketplace and qualify for a subsidy. Thanks. Reply
Hi Jon, You can go to TurboTaxAnswerXchange.com and answer a few questions and you will find out if you are eligible for insurance and a subsidy through the Marketplace. Thank you, Lisa Greene-Lewis Reply
I currently do not have health insurance. However, I work for a large corporation that stated they will be giving health insurance to its employees a year later since the employer mandate got delayed a year. My question is, will I face a penalty if I simply wait for my job insurance? Or I am exempt since my job will be giving me healthcare a year from now? Reply
Hi Jean, The employer mandate was extended giving employers another year to get health insurance, however the individual mandate was not extended, which requires uninsured individuals to have insurance by March 31, 2014 so you will not be exempt. For more answers to your specific health care questions, visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
I’m retired and buy health insurance through my former employer. It is still quite expensive though. Can I get assistance with premiums or in the form of a tax deduction? Reply
Hi Mary, You will not be eligible for assistance unless you purchase health insurance in the Health Insurance Marketplace. You can deduct your health insurance premiums if you itemize your tax deductions and your medical expenses exceed 10% of your adjusted gross income (7.5% if 65 and over). If you have more questions on specific health care questions, you can also visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
I receive social security, plus took a withdrawal from an IRA, and in 2013 had some unemployment benefits. What counts as income? What’s exempt? Reply
Hi Marjorie, The Marketplace will count unemployment, non-taxable social security and your income from your IRA withdrawl. For additional health care questions, please visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
Hey Tom, If you have VA health care, you are not required to purchase health insurance under the Affordable Care Act. For additional questions regarding your specific health care, please visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
Our small business (>10 employees) will only get the health insurance tax credit if we go through SHOP. (We get about $1000 credit annually right now) We pay well and cover the majority of our employees insurance premium (66%) It looks like we might as well drop coverage so that a couple of our employees who would be eligible for subsidies by going through the marketplace can save some money (large family, spouse’s jobs don’t provide health insurance, our employee is primary bread winner, and earns about 42K, which is well above average for the market, spouse earns less, about 24K) Am I misunderstanding? The premiums through SHOP will be higher than we currently pay, because our employees are older than 27. Our long time, older employees will have a $200+ a month increase in premium according to the listed rates, but will likely not be eligible for a subsidy. Looks like workers will pay more (taxes pay the subsidies) for insurance in the long run, no matter what. Do I misunderstand? Am I the only one in this dilemma? If I keep my plan, this one gets no subsidy and I get no tax credit (and as a majority they pay less overall) or I can drop my plan and let all employees face higher premiums! Reply
If you get fired and lose your healthcare for any amount of time, will you have to pay the penalty for not having insurance. Because it takes 90 days for new insurance to kick in when switching jobs etc… Reply
Hi Natalie, Since that is considered a life event or change, you are given a grace period and you can purchase insurance through the Health Insurance Marketplace outside of the open enrollment period (October 1, 2013 – March 31, 2014). If you have a gap in coverage of less than 3 months you are exempt from the penalty. For more answers to your specific health care questions please visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply