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 » Both of my kids are on arkids does it qualify under the ACA? Or do I need to add them to my insurance? Reply Hi Alicia, You can check with ARKids to see if it qualifies. You can also check the AR Marketplace to find coverage if ARKids does not qualify. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply I currently have a PPO plan through BCBS of NC. Will the new laws affect BCBS coverage or will they stay the same—-as in Will I be denied coverage because of my age –50– or will diagnostics and surgeries be limited because of the increased demand for services? You might tell me to check with BCBS…they haven’t offered explanations yet. Thanks for any info you can give….general info is helpful too.:-) Reply Hi Diane, All policies must meet minimum requirements, bet they don’t have to cover everything. You cannot be charged more than someone else your age for the same coverage, and cannot be denied coverage due to preexisting conditions. You may be able to find more information on the Marketplace for NC – HealthCare.gov For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply You left out a very IMPORTANT item. While insurance companies can not deny coverage due to pre-existing conditions, then can deny coverage due to your credit score. So, what if your credit score prevent you from getting insurance, what if all avenues are exhausted and you are denied coverage, are you still fined (taxed)? Present that fact please. Reply Omgosh I hope that’s not true although, sadly I do believe it. :'( Reply Thanks for this short and sweet explanation of Obama Care and how it affects us and taxes. Appreciate your interest in helping us understand. 🙂 Reply This is the best description that I have seen and it was presented in basic terms. Thank you Turbo Tax. Reply My son is not employed, and has no insurance. Would it be more beneficial for him to sign up for the affordable act, or should I add him to mine thru my employer? Reply If he is under 26, he can go onto your policy right now. That was a requirement of ACA which is already in force. Reply When figuring our income LTD and Social Security Disability doi put both totals or do I put our taxable income? We are only taxed on the LTD . Reply Hi Donele, Your household income will include the LTD and the Social Security Disability, even though it is not taxable income for you. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply I am a 45 yr old widow with 2 kids at home, currently going to college on pell grant and not employed. We have only S.S. survivors benefits for myself and one child under 18, the other child is 18 and going to college full time on pell grants, We live in Texas and have never had insurance and would love the chance to have the kids covered but CHIPS turned us down last year and I was wanting to know if I could qualify for any help on the premiums? Also we are Native Americans of the Cherokee tribe but do not live in the territory of Okla so therefore we cant get medical coverage unless we travel there, Reply Hi Cheryl, You can check out your options at HealthCare.gov. Enter your family size and income to see what policies and help is available to you and your children. Your household income will include the Social Security Survivors Benefits, but not the Pell Grants. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply POST #2 Just saw Your answer to Heather 3 or 4 posts from here. went on the link for the American Indian/ Alaskan Native. Very good site for Cheryl to go to.. On that link page, go through the question box at bottom of page… Will the Affordable Care Act (which we do not have to purchase-covered through employer) cause we middle class folks to pay even more taxes? Reply I live in LA. Since governor Jindal refused the obamacare package does that make Louisiana residents exempt? Reply Hi Cassandra, Residents of LA are not exempt from the requirement to have insurance. Your state does not have a state specific exchange, so you can shop for coverage at https://www.healthcare.gov/marketplace/individual/#state=louisiana For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply My children and self are Native American. We do not have insurance but we get coverage through Indian Health Services. Do we need to apply for ObamaCare or are we exempt? Reply Hi Heather, Under the Affordable Care Act, you are exempt from purchasing health care through the Health Insurance Marketplace and you will not receive a penalty. Please see the below articles. https://www.healthcare.gov/if-im-an-american-indian-or-alaska-native-what-do-i-need-to-know-about-the-marketplace/ https://www.healthcare.gov/exemptions/ For more answers to your specific health care questions, please visit TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply Really?! Need more information please Reply Hi Sue, For answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply Article. 1. Section. 1. Of our Constitution says that (All legislative Powers herein granted shall be vested in a Congress of the United States, which shall consist of a Senate and house of Representatives.) It never gave the power to write laws to the Judicial or the Executive branches which includes the President so by calling it a law you are really miss informing yourselves and no wear in the Constitution dose it give the Federal government power to involve themselves in healthcare. Inform Yourselves of the Constitution which is supreme Law!! Reply Are you serious Ben? Do you know how a bill becomes law? Maybe you should Google it. The ACA was voted on and approved by Congress. Wow. Reply Ben, you are misinformed. Not only was the Affordable Care Act voted into law by congress it was upheld as constitutional by the U.S, supreme court. Reply Article 1, Section 8 of the US Constitution says: “The Congress shall have power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States”. Many people, including myself, strongly believe that the Affordable Care Act is helping provide for the general welfare of the United States. Reply regarding ‘lay and collect’, Obama even disagrees with you, http://youtu.be/608aMT5-TYk; regarding ‘helping provide’, it’s a private insurance mandate, where does ‘general welfare’ even belong in this argument much less the same sentence? Let me guess, you can avoid insurance? I used to be able to before all the cut backs and lay offs. It’s not that I don’t want medical insurance. I grieve the loss of it every day. In a beautiful socialist way… Hi I have health insurance through my employer but I pay $202.00 a month for premium coverage..I’m on disability through my employer and only earn $1987 a month now..will I be able to claim any of my insurance on my taxes? I’ve been paying this for 1.5 years now.. Reply Hi Brandi, I’m not sure exactly what you mean by “claim any of my insurance on my taxes”. If your premiums are not paid through a cafeteria plan of your employers (they get deducted from your pay before taxes are calculated), you are already getting a deduction. If there is no cafeteria plan, then your premiums will qualify as a medical expense for itemizing deductions on Schedule A. The tax credits for assistance in paying are only available for policies purchased from the Marketplace. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply No they aren’t taken out of my pay..I’m on long term disability through my employer so every month I write a check for my health insurance.. Thank you Hi.. I am 64 and will be 65 in January.. When I get Medicare it only covers 80%.. I will need a supplement to cover the extra 20%.. I am also low income approximately 15 thousand a year or less..do I qualify for any help with the extra 20% insurance needed to cover all my care? Also I am a Citizen of the Chickasaw Nation in Ada Okla…but I live in Texas.. Reply Hi, The Marketplace does not offer Medicare supplement (Medigap) insurance or Part D drug plans. For information on these programs, visit Medicare.gov. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply My question pertains to income limitations to qualify for subsidies on health care premiums. I am looking for the definition for income as it pertains to these limitations as I am recently retired and receiving distributions from money that I earned / invested over many years. Do these distributions fall under the category of “income?” Reply Hi Rick, Income for purposes of the Marketplace is your adjusted gross income plus non-taxable interest, non-taxed social security and non-taxable foreign income. If your distributions are taxable income and not return of investment, then they are income. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply I am unemployed and my wife’s employer does not offer a insurance plan. Our income is about $42,000. Would be able to get a tax credit? Reply Hi Mark, There is a simple calculator to help you with this and other specific health insurance questions. Please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply Hi.. I’m a bit confused. I’m reading about a tax credit? is this for people who buy into the obamacare or for those individual that already have insurance? I pay about 5K in health insurance a year, with a household of 4 and only one paycheck it would be nice to know that there is a credit that can be applied for having private insurance. thanks, Jackie Reply This government is biggest crooks eet only way yuo get or country back is to stop voting for democrats and republicans Reply My family is presently members of Samaritan’s Ministries Sharing plan(a non profit health sharing group). My understanding is that the IRS will recognize us as exempt from the mandate of forcing us to purchase insurance from health insurance companies that support abortions. Is this the true? Or do I need to be concerned of the state in which I live (WV). Reply Members of a Qualified nonprofit health care sharing ministry will be exempt from the requirement to purchase health insurance. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply You may currently have health insurance, but it probably does not cover all of the additional coverage items required by the ACA. That would mean that, although you’re covered now, you may not be covered on January 1, 2014. And, if the coverage continues, it’s highly likely that the premium will be increased for the additional coverages required by the ACA. Employers are likely to pass all or part of the increased premium to the employees, resulting in a reduction in the employees’ net income. So, “what, me worry”? Reply My son works part time and buys very bare bones insurance through his employer. Can he drop the coverage and get a plan through the state exchange? Reply My wife and I file jointly she has no income does that make a difference she is my dependent Reply Your wife is NEVER your dependent. You are married filing JOINTLY. Reply What if you marry in 2014 and you file income tax separately,whose the dependent Hi Cheryl, To determine health insurance eligibility in the Marketplace, the Marketplace will take your total household income of you and your spouse. Your spouse is never considered a dependent. Please see http://www.irs.gov/uac/Six-Important-Facts-about-Dependents-and-Exemptions-1 For more answers to your specific health insurance questions, please visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Members of a Qualified nonprofit health care sharing ministry will be exempt from the requirement to purchase health insurance. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply We are quasi retired and living off of savings and taxable investments. In 2012 our taxable income was over $100K, and this year my income may be less than $50K. In 2014, it is anybody’s guess. My point is it is highly variable. So can you please tell me how the tax subsidies are calculated and if there are any strategies that i should deploy to get the maximum subsidy. My wife and I are 53 with no dependents. We have been buying high deductible, HSA qualified health insurance, and it looks like our premiums will be skyrocketing by 80% next year based on what the insurance company has suggested for us, and how it is in line with other programs being offered on our state’s insurance exchange. So it is critical that we understand how the subsidies work. Please advise. Reply Hi Mike, The credit is estimated when you purchase your insurance through the exchange. When you file your 2014 tax return in 2015, there will be a form for calculating the actual amount of the credit. You will then pay back any excess credit or receive a refund if your estimated credit was short of the actual. There are limits on how much you can be required to pay back. You can go back to the Marketplace and change your estimates throughout the year if your income is variable, adjusting your credit estimate as you go. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply I pay for Tricare prime. Does it qualify under the PPACA? Reply Hi Bob, Yes, Tricare is considered affordable insurance and is qualified under the PPACA. Reply I will turn 65 in February 2014. How will the fine affect me if I do not take the insurance for two months. Reply Hi Elizabeth, You are allowed three month of no insurance, so you should have no penalty as long as your Medicare starts covering you by April 1, 2014. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply Thank goodness. At least there’s some time to think, research, learn about all this. And I can hope for a miracle before March 31st. I currently have insurance through my employer with a high-deductible HSA plan, and I have been working to build up my HSA balance over several years. Thankfully, I have been healthy and have not needed medicare care since I’ve been on the HSA plan. My question is, if I were to lose or leave my job and had to purchase coverage through the federal exchange (my state doesn’t have a state-based exchange), are the plans HSA-eligible? I think the law says that plans with a certain level of deductible are eligible, so I would think so, but I guess I”m worndering if I’d still have access to the savings in the HSA account to pay premiums and health expenses if I were participating in an exchange plan? Reply Hi JJ, From http://www.healthcare.gov – If you have an HDHP (High Deductible Health Plan), you can use a health savings account or a health reimbursement arrangement to pay for qualified out-of-pocket medical costs. For more answers to your specific health insurance questions, visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply Okay, everybody, get out and vote! Government is only what you make of it. If you don’t want all of these regulations, let’s put a better person in the presidency and let your senators and representatives know how you expect them to vote. Reply Your right Carol! This is a disaster and people better wake up.Govt healthcare doesn’t work,just ask Canada.Our freedoms are being infringed upon by this government. Reply Government Health Care doesn’t work? You have got to be kidding me Medicare gives the biggest bang for the buck and is the cheapest insurance you can purchase! Open your eyes and quit repeating all this “Tea Party” gobble de gook. uh….actually, Canadian government health care DOES work. Maybe you have a ‘Cadillac’ health plan. In which case you would probably have lost it soon. (Or maybe you are in Congress?) You should get the facts before making statements that don’t reflect reality. Canada’s system works just fine (I’ve lived with it, and used it, and it puts to shame any program available in the US, including the ACA). Canadians may complain, but they would revolt if their single-payer system were taken away! The most freedom infringing piece of legislation is recent history was The Patriot Act, and just who’s idea was THAT? or vote out the GOP bums. Reply We did vote. Remember Nov 2011? Reply I meant 2012, sorry We will be voting but not for those who want to deny me the ability to purchase health insurance from an insurance company! If you are successful at taking away my one chance at getting health care my husband and I will be forced to get a divorce so that all of our assets will be his name. That way if something happens to me, you the tax payers will have to pay for it. As it is now we would be wiped out financially giving us nothing to live on in our senior years. Give Affordable Health Care a chance! Reply Right now, employers can deduct health care premiums so that health care is “tax free” benefit. What happens if my employer cancels the employee group policy, pays us what it used to cost him, and tell us to go get Obamacare? Will we now get taxed on the benefit with both employment and income taxes, not to mention state and local taxes? Reply Hi, Yes, if your paycheck is increased, you will have to pay higher income and employment taxes. Your employer can set up a Flex Spending Account for out of pocket costs so those can be tax free, but not for the insurance premiums. For more answers to your specific health insurance questions, visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply Do you know where it is written that employer policies currently are tax deductible for providing insurance? Thank you! Reply I work for Walmart in Kansas, and with what I make and less than 40hrs. a week, I cannot afford their insurance, and my husbands boss does not provide insurance for his employers because of the price to cover them. what about people like us who cannot afford health insurance because of our income. neither me nor my husband make enough money to afford to be covered, even though we would like to have health insurance. Reply Hi Sonia, You can see if you’re eligible for Medicaid or Catastrophic Health Insurance. Medicaid is a free or low cost health insurance. You can see if you qualify for both at https://www.healthcare.gov/ For more answers to your specific health insurance questions, visit http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply My employer pays 100% of my premium. My husband gets somewhat decent insurance (we still can’t afford the deductible, but if anything major happens, we won’t be homeless). However adding our son is really expensive, over $350 per month on either of our plans. Can I get coverage through the exchange for him? Our income is decent, but after child support my husband pays, our income drops significantly. Would they consider our gross income, AGI, or net after child support, daycare, health care costs? Reply Hi Kara, You would be able to shop for your son’s insurance in the Marketplace. He may also qualify for insurance through CHIP https://www.healthcare.gov/are-my-children-eligible-for-chip/#state=california The Health Insurance Marketplace would use your Modified Adjusted Gross Income (Wages, salaries, any unemployment income, other sources of income, social security payments) less the child support paid. They would not deduct daycare or health care cost. For more answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply Would my 28 year old daughter who is a full time student and works part time be better of taking the medical insurance through Florida Atlantic University or should she go with Obamacare? Reply Probably Florida Atlantic University. Review & compare the cost, the benefits and the costs your daughter or you will pay out of pocket for co-pays and deductibles. Make sure you look at the website http://www.healthcare.gov (that ends in .gov not .com). Reply My husband and I have insurance through his employer. I have guardianship of my grandson, but they won’t cover him because my husband is not his guardian. I have no income of my own, but we file joint taxes, and I claim my grandson on our taxes. Will they use household income to determine the cost for my grandson’s insurance? Seems unfair to do so since his employers seems to think he, and so they, are not responsible for him. Reply Hi Dawn, Since your grandson is claimed as a dependent on you and your husbands tax return the Marketplace would use household income to determine your grandson’s health insurance. For more answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply If you already have coverage as I have and paid for individually; YOU ARE NOT ALL SET! that is an untrue statement. I was recently notified by my health insurance company that because of ACA they were dropping my coverage as of Dec. 31st. I cannot keep my current insurance and I’m worried I will not be able to see my regular doctor and what this Obamacare policy will cost. Reply Hi Shirley, Yes, that is true if your insurance company drops your coverage then you would have to visit the Marketplace and purchase there. Those that already have coverage and remain covered don’t have to do anything. Thank you, Lisa Greene-Lewis Reply I am a veteran and covered by my Va benefits. How does this impact my taxes and filling out taxes online? Reply Hi Donald, Because you have coverage through your VA benefits, you don’t need to do anything more, and your taxes will not be impacted by this. For more answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply I am in the same boat I have insurance mykids have chip my wife has none but she has no income of her own will I get fined Reply Hi Clinton, If your wife does not get insurance coverage, she will be fined when she files her personal income tax return in 2015. For more answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply How can rhey fine someome who dosent have an income they wont get paid My wife and I file jointly she has no income does that make a difference she is my dependent Clinton. It is my understanding that if your wife has no income and you file jointly then you should probably put your wife on your insurance plan. If she goes without, then you would be “fined” on your taxes. If that is not an option then she would have to get her insurance through the ACA based on the joint income status, which you probably would get tax credits for Reply The video was great,very helpful. The background music however was terrible and distracting. Try to tone it down a bit. Thanks. Reply I am a USA citizen living in Mexico fro the past 3 years and have my own USA health policy but want to drop it it and buy Mexican insurance, which is much lower in cost. If i do this, will I be required to USA insurance as well? Reply Hi, According to http://www.healthcare.gov – U.S. citizens living in a foreign country are not required to get health insurance coverage under the Affordable Care Act. If you’re uninsured and living abroad, you don’t have to pay the fee that other uninsured U.S. citizens may have to pay. Generally, health insurance coverage in the Marketplace covers health care provided by doctors, hospitals, and medical services within the United States. If you’re living abroad, it’s important to know this before you consider buying Marketplace insurance. For more answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply I still have a USA residence where my two sons live and they both have jobs. I am in Mexico, but have USA private insurance. One son is insured by his employer, but the other age (26) has no insurance. How would He calculate “house hold income”? The only income that I have amounts to about $12000/yr. from investments. Also: how does the government know that I have my own USA insurance(which I may cancel) and if I do cancel and get Mexico insurance, how do they know that I live outside of the USA, when I still file taxes with my USA address where my son’s live? Thanks you for this information!! Turbo-Tax rocks and this clear explanation answered all of my questions….keep up the good work! Reply My husband has insurance threw his company and my kids get chips but I have no insurance what are my options I live in Texas and we make about 29k a year Reply You can check out the Marketplace for Texas here – https://www.healthcare.gov/pre-registration.html It will let you know what policies you qualify for and what benefits are available to help you pay for your policy. Reply Who are the few exceptions? I heard that ordained ministers could opt out like they can with social security, is this true? Reply There are exemptions for those who can’t afford coverage, those with low household income, members of federally recognized Indian tribes, individuals who experience a hardship, individuals who experience a short (3 months or less) coverage gap, incarcerated individuals and individuals who are not lawfully present in the US. There are also exemptions for the members of q Qualified nonprofit health care sharing ministry and for members of certain religious sects. The certain religious sect must be recognized by the Social Security Administration, so it isn’t quite like ministers who just file the form to be exempt from Social Security. There is more to it. I would start with your state Marketplace to see if you qualify for exemption. Reply wow, thanks for the informative response! I am employed by a local Electrical Utility Company. My wife recently started working for an insurance firm as a 1099 employee. What expenses are allowable for deduction? Mileage to and from her office? Client Luncheons/Dinners? Equipment such as tools, computers, laptops. For example she just made cookies for an open house her firm is sponsoring. Can that be claimed and to what degree…the natural gas stove used to bake the cookies, etc, etc,,,, Reply Hi Thomas, The answers to your question depend on particular circumstances. If your wife is required to work at the insurance company office, here mileage will not be deductible. If she is required to provide a home office, and meets all of the qualifications for deducting a home office, then the mileage may be deductible. If she is paying out of her pocket for client luncheons/dinners and keeps the proper documentation – who, why, how much – she can deduct those on her schedule C. The cookies for the open house – just the ingredients, unless you have some handy-dandy way to calculate the amount of fuel she used in baking the cookies. If so, add that in. Other supplies are deductible, but computers, laptops, and cell phones will need to be depreciated, and you need to separate personal use from business use of the computers unless they are in a qualified home office. You can find additional information at this blog – http://blog.turbotax.intuit.com/2011/03/08/tax-tips-for-startups-and-entrepreneurs/ Reply Thanks for the information. It was very helpful. Seems like most of the answers lie in the fact that we really just need to use common sense and logic. Another question for you in reference to my wife working as a 1099 employee! We’re in Pennsylvania(residence). We have a local E.I.T. (Earned Income Tax) rate of 1.5%, State income Tax of 3.07% and then her federal portion. I’m figuring on socking away 30% of her salary to cover all those taxes. Is this too much? Thomas, Self employment tax rate (social security and medicare) is 15% (after the deduction) on net business income, plus your federal income tax rate. If your federal tax bracket is more than 10%, you may need to save a bit more for taxes. Obamacare is an unconstitutional law. the best thing for everyone to do is to refuse obamacare, refuse to pay the fine, refuse to be bullied by obama and the irs. fight, to the death if necessary this illegal, communist, so called law. Reply Strange how the US Supreme Court didn’t think it was unconstitutional. In fact they ruled just the opposite. Guess you know more than they do. Reply They ruled on the mandate, not the law. Generally speaking. Once the SCOTUS rules a law constitutional they do not revisit it. So PPACA is constitutional. The abrogation of duty in regard to Congress powers of disbursement however may be putting Boehner in jeopardy. I do believe he is on the verge of violating the constitutions 14th amendment. Reply You forgot to say refuse the Supreme Court, who found the law Constitutional. Oh….wait. But hey, if you fight to the death that means more room for normal people. Reply I agree Reply I do not have insurance so what will the penalty amount be Reply The fee for not having insurance in 2014 is $95 per person or about 1% if single and your income is over $20,000 or over $55,000 if married . There are additional fees for uninsured children. For 2016, it will be about 3 times higher. Plus you are responsible for paying for all of your medical expenses if you do not have insurance. You can find more information at https://turbotax.intuit.com/health-care/ or https://www.healthcare.gov/what-if-someone-doesnt-have-health-coverage-in-2014/ Reply Screw obamacare! Single 25 guy with 40k income not qualified for any subsidy..and the cheapest plan in NY is $3500 out of my own pocket because my company doesn`t provide any assistance with health insurance. In which way this is an “affordable” and how it`s now going to benefit me? Reply I am self employed and have no health insurance. Last year my AGI was 23k (on about $98k of income). This year my income will hit approximately $150k so my AGI will be around 50k I presume. My Fiance, who I fully support has no job, no insurance, and no income. Am I better off making her an employee and providing insurance for both of us? Will tax credits help either of us? Are the credits better as a business than as an individual? Also, I live in one state but my official residency is in another. Do I have a choice where I get my insurance? Do I have to treat in the state that I have my coverage in? I work all over the country…. Thanks. Reply Hi Mike, You can check out your options by going to the Marketplace to see which plan will be of the most benefit – hiring your fiance and providing insurance through your business, or claiming her as part of your household and getting insurance through the Marketplace. I would look at both your resident state and your non-resident state and see which doctors and hospitals are included, and which costs are covered. For more answers to your specific health insurance questions, visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply No health insurance? Uncovered health care costs are one of the biggest causes of bankruptcy. You are playing with fire. Talk to a financial planner immediately. Reply It’s not entirely true that you will not have to do anything if you already have individual insurance. We were notified by our insurance carrier that we are required to purchase our policy from the marketplace because our current policy does not meet the new standards. Already our insurance has gone up 57% two years ago because of the requirement for our children to be able to stay on our policy until 26 years old. So our carrier began charging a “per child” cost instead of a “family” cost. Last year our policy went up another 28% because we did not carry maternity insurance since we already have children and do not plan on having more. Because of ACA, we not only have to pay maternity on my wife, but now it is on my portion as well! I am not sure what is being “upgraded” now, but I have this haunting feeling that my rates are going up once again… So this is the third time that I am not able to keep my insurance even though I liked it better the way it was. But apparently there was no for Obama to know that when he said we could keep our insurance if we liked it! Reply Hi Frank, If your insurance carrier drops your policy, you will need to get insurance from another source, either the Marketplace or a private carrier. But if your policy is continuing, you do not need to make any additional changes. For more answers to your specific health insurance questions, visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply I am retired and on a fixed income. My wife works part time. No children at home. We are both in good health and carry high deductable policies. I was notified that our current health insurance policies would end on Dec. 31 and we can continue coverage under a policy that is similar and complies with ACA requirements. My premium is increasing by 83.8% and my wife’s premium is increasing by78.9%. I am very frustrated with this entire health care change. Reply Appreciate the information. Reply I have health insurance thru my employer. My ex lost job 5 yrs ago & is required to have health benefits for my 16yr old daughter but doesn’t. I claim her on my taxes. So exactly who will get penalized??? Reply You should consider insuring your child. My ex was suppose to insure my son but hasn’t the entire 12 years of his existence but anything could happen so I insured my child versus him going uncovered. Your child should not be uncovered because of lack of responsibility of the other parent. Since you claim her on your taxes you will be penalized because you are the one getting the credit for claiming her. Be safe and insure your child or take your ex to court. Reply I agree TBC. But, the sad part is, even with a court order the other parent does not ‘have’ to get the insurance. My advice to Theresa would be to get the insurance for your child and have it added into the child support calculation. how do i estimate my 2014 income? my situation is kinda complicated. now my wife and i are both attending school and expect to graduate next year. so starting 2014, both of us will be looking for jobs. right now our annual income is around 15k which is qualified for the medicaid bracket, but most likely we will have jobs in 2014 and our real income for 2014 is much higher, lets say 60k for the year of 2014. so how are we gonna apply for the obamacare? what income are we suppose to estimate? what if we use medicaid for the entire year of 2014, and the real income end up being much higher when we file 2014 tax return in 2015? please help me. thank you Reply Daniel, You can start with Medicaid, then go back to the Marketplace when you begin working to adjust your income. Hopefully you will have coverage through your new employer and will not have to buy insurance. If you qualify for Medicaid, you are not receiving the tax credit, so there will be no repayment if your income goes up. Reply So i have until march31st 2014 to sign up- I turn 65 May16,2014 and will then be on medicare. What penalty will i incure? And should i sign up for this insurance? I am confused Reply The penalty for not having insurance can be as high as 1% of your income. You can get insurance for the five months prior to being eligible for Medicare through your state Marketplace. As you are talking with Social Security, they may have more information for you, or you can ask questions on your state Marketplace. Reply « Older Comments Newer Comments » Leave a ReplyCancel reply Browse Related Articles Tax Planning TurboTax Enables Refund Advance to Taxpayers Investments Tax Benefits of Real Estate Investing Self-Employed Business Tax Checklist: What You’ll Need When Filing Uncategorized What Is Deferred Compensation & How Is It Taxed? Investments How Does an Inherited IRA Work? Work Choosing Your Business Structure: 5 Types of Businesses… Tax Deductions and Credits Are HOA Fees Tax Deductible? What You Need to Know Crypto Understanding Crypto and Capital Gains Work 7 Things You Need to Know About the New Business Report… Work Using Form 8829 to Write-Off Business Use of Your Home
Both of my kids are on arkids does it qualify under the ACA? Or do I need to add them to my insurance? Reply
Hi Alicia, You can check with ARKids to see if it qualifies. You can also check the AR Marketplace to find coverage if ARKids does not qualify. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
I currently have a PPO plan through BCBS of NC. Will the new laws affect BCBS coverage or will they stay the same—-as in Will I be denied coverage because of my age –50– or will diagnostics and surgeries be limited because of the increased demand for services? You might tell me to check with BCBS…they haven’t offered explanations yet. Thanks for any info you can give….general info is helpful too.:-) Reply
Hi Diane, All policies must meet minimum requirements, bet they don’t have to cover everything. You cannot be charged more than someone else your age for the same coverage, and cannot be denied coverage due to preexisting conditions. You may be able to find more information on the Marketplace for NC – HealthCare.gov For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
You left out a very IMPORTANT item. While insurance companies can not deny coverage due to pre-existing conditions, then can deny coverage due to your credit score. So, what if your credit score prevent you from getting insurance, what if all avenues are exhausted and you are denied coverage, are you still fined (taxed)? Present that fact please. Reply
Thanks for this short and sweet explanation of Obama Care and how it affects us and taxes. Appreciate your interest in helping us understand. 🙂 Reply
This is the best description that I have seen and it was presented in basic terms. Thank you Turbo Tax. Reply
My son is not employed, and has no insurance. Would it be more beneficial for him to sign up for the affordable act, or should I add him to mine thru my employer? Reply
If he is under 26, he can go onto your policy right now. That was a requirement of ACA which is already in force. Reply
When figuring our income LTD and Social Security Disability doi put both totals or do I put our taxable income? We are only taxed on the LTD . Reply
Hi Donele, Your household income will include the LTD and the Social Security Disability, even though it is not taxable income for you. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
I am a 45 yr old widow with 2 kids at home, currently going to college on pell grant and not employed. We have only S.S. survivors benefits for myself and one child under 18, the other child is 18 and going to college full time on pell grants, We live in Texas and have never had insurance and would love the chance to have the kids covered but CHIPS turned us down last year and I was wanting to know if I could qualify for any help on the premiums? Also we are Native Americans of the Cherokee tribe but do not live in the territory of Okla so therefore we cant get medical coverage unless we travel there, Reply
Hi Cheryl, You can check out your options at HealthCare.gov. Enter your family size and income to see what policies and help is available to you and your children. Your household income will include the Social Security Survivors Benefits, but not the Pell Grants. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
POST #2 Just saw Your answer to Heather 3 or 4 posts from here. went on the link for the American Indian/ Alaskan Native. Very good site for Cheryl to go to.. On that link page, go through the question box at bottom of page…
Will the Affordable Care Act (which we do not have to purchase-covered through employer) cause we middle class folks to pay even more taxes? Reply
I live in LA. Since governor Jindal refused the obamacare package does that make Louisiana residents exempt? Reply
Hi Cassandra, Residents of LA are not exempt from the requirement to have insurance. Your state does not have a state specific exchange, so you can shop for coverage at https://www.healthcare.gov/marketplace/individual/#state=louisiana For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
My children and self are Native American. We do not have insurance but we get coverage through Indian Health Services. Do we need to apply for ObamaCare or are we exempt? Reply
Hi Heather, Under the Affordable Care Act, you are exempt from purchasing health care through the Health Insurance Marketplace and you will not receive a penalty. Please see the below articles. https://www.healthcare.gov/if-im-an-american-indian-or-alaska-native-what-do-i-need-to-know-about-the-marketplace/ https://www.healthcare.gov/exemptions/ For more answers to your specific health care questions, please visit TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
Hi Sue, For answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
Article. 1. Section. 1. Of our Constitution says that (All legislative Powers herein granted shall be vested in a Congress of the United States, which shall consist of a Senate and house of Representatives.) It never gave the power to write laws to the Judicial or the Executive branches which includes the President so by calling it a law you are really miss informing yourselves and no wear in the Constitution dose it give the Federal government power to involve themselves in healthcare. Inform Yourselves of the Constitution which is supreme Law!! Reply
Are you serious Ben? Do you know how a bill becomes law? Maybe you should Google it. The ACA was voted on and approved by Congress. Wow. Reply
Ben, you are misinformed. Not only was the Affordable Care Act voted into law by congress it was upheld as constitutional by the U.S, supreme court. Reply
Article 1, Section 8 of the US Constitution says: “The Congress shall have power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States”. Many people, including myself, strongly believe that the Affordable Care Act is helping provide for the general welfare of the United States. Reply
regarding ‘lay and collect’, Obama even disagrees with you, http://youtu.be/608aMT5-TYk; regarding ‘helping provide’, it’s a private insurance mandate, where does ‘general welfare’ even belong in this argument much less the same sentence?
Let me guess, you can avoid insurance? I used to be able to before all the cut backs and lay offs. It’s not that I don’t want medical insurance. I grieve the loss of it every day.
Hi I have health insurance through my employer but I pay $202.00 a month for premium coverage..I’m on disability through my employer and only earn $1987 a month now..will I be able to claim any of my insurance on my taxes? I’ve been paying this for 1.5 years now.. Reply
Hi Brandi, I’m not sure exactly what you mean by “claim any of my insurance on my taxes”. If your premiums are not paid through a cafeteria plan of your employers (they get deducted from your pay before taxes are calculated), you are already getting a deduction. If there is no cafeteria plan, then your premiums will qualify as a medical expense for itemizing deductions on Schedule A. The tax credits for assistance in paying are only available for policies purchased from the Marketplace. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
No they aren’t taken out of my pay..I’m on long term disability through my employer so every month I write a check for my health insurance.. Thank you
Hi.. I am 64 and will be 65 in January.. When I get Medicare it only covers 80%.. I will need a supplement to cover the extra 20%.. I am also low income approximately 15 thousand a year or less..do I qualify for any help with the extra 20% insurance needed to cover all my care? Also I am a Citizen of the Chickasaw Nation in Ada Okla…but I live in Texas.. Reply
Hi, The Marketplace does not offer Medicare supplement (Medigap) insurance or Part D drug plans. For information on these programs, visit Medicare.gov. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
My question pertains to income limitations to qualify for subsidies on health care premiums. I am looking for the definition for income as it pertains to these limitations as I am recently retired and receiving distributions from money that I earned / invested over many years. Do these distributions fall under the category of “income?” Reply
Hi Rick, Income for purposes of the Marketplace is your adjusted gross income plus non-taxable interest, non-taxed social security and non-taxable foreign income. If your distributions are taxable income and not return of investment, then they are income. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
I am unemployed and my wife’s employer does not offer a insurance plan. Our income is about $42,000. Would be able to get a tax credit? Reply
Hi Mark, There is a simple calculator to help you with this and other specific health insurance questions. Please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
Hi.. I’m a bit confused. I’m reading about a tax credit? is this for people who buy into the obamacare or for those individual that already have insurance? I pay about 5K in health insurance a year, with a household of 4 and only one paycheck it would be nice to know that there is a credit that can be applied for having private insurance. thanks, Jackie Reply
This government is biggest crooks eet only way yuo get or country back is to stop voting for democrats and republicans Reply
My family is presently members of Samaritan’s Ministries Sharing plan(a non profit health sharing group). My understanding is that the IRS will recognize us as exempt from the mandate of forcing us to purchase insurance from health insurance companies that support abortions. Is this the true? Or do I need to be concerned of the state in which I live (WV). Reply
Members of a Qualified nonprofit health care sharing ministry will be exempt from the requirement to purchase health insurance. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
You may currently have health insurance, but it probably does not cover all of the additional coverage items required by the ACA. That would mean that, although you’re covered now, you may not be covered on January 1, 2014. And, if the coverage continues, it’s highly likely that the premium will be increased for the additional coverages required by the ACA. Employers are likely to pass all or part of the increased premium to the employees, resulting in a reduction in the employees’ net income. So, “what, me worry”? Reply
My son works part time and buys very bare bones insurance through his employer. Can he drop the coverage and get a plan through the state exchange? Reply
Hi Cheryl, To determine health insurance eligibility in the Marketplace, the Marketplace will take your total household income of you and your spouse. Your spouse is never considered a dependent. Please see http://www.irs.gov/uac/Six-Important-Facts-about-Dependents-and-Exemptions-1 For more answers to your specific health insurance questions, please visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis
Members of a Qualified nonprofit health care sharing ministry will be exempt from the requirement to purchase health insurance. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
We are quasi retired and living off of savings and taxable investments. In 2012 our taxable income was over $100K, and this year my income may be less than $50K. In 2014, it is anybody’s guess. My point is it is highly variable. So can you please tell me how the tax subsidies are calculated and if there are any strategies that i should deploy to get the maximum subsidy. My wife and I are 53 with no dependents. We have been buying high deductible, HSA qualified health insurance, and it looks like our premiums will be skyrocketing by 80% next year based on what the insurance company has suggested for us, and how it is in line with other programs being offered on our state’s insurance exchange. So it is critical that we understand how the subsidies work. Please advise. Reply
Hi Mike, The credit is estimated when you purchase your insurance through the exchange. When you file your 2014 tax return in 2015, there will be a form for calculating the actual amount of the credit. You will then pay back any excess credit or receive a refund if your estimated credit was short of the actual. There are limits on how much you can be required to pay back. You can go back to the Marketplace and change your estimates throughout the year if your income is variable, adjusting your credit estimate as you go. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
I will turn 65 in February 2014. How will the fine affect me if I do not take the insurance for two months. Reply
Hi Elizabeth, You are allowed three month of no insurance, so you should have no penalty as long as your Medicare starts covering you by April 1, 2014. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
Thank goodness. At least there’s some time to think, research, learn about all this. And I can hope for a miracle before March 31st.
I currently have insurance through my employer with a high-deductible HSA plan, and I have been working to build up my HSA balance over several years. Thankfully, I have been healthy and have not needed medicare care since I’ve been on the HSA plan. My question is, if I were to lose or leave my job and had to purchase coverage through the federal exchange (my state doesn’t have a state-based exchange), are the plans HSA-eligible? I think the law says that plans with a certain level of deductible are eligible, so I would think so, but I guess I”m worndering if I’d still have access to the savings in the HSA account to pay premiums and health expenses if I were participating in an exchange plan? Reply
Hi JJ, From http://www.healthcare.gov – If you have an HDHP (High Deductible Health Plan), you can use a health savings account or a health reimbursement arrangement to pay for qualified out-of-pocket medical costs. For more answers to your specific health insurance questions, visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
Okay, everybody, get out and vote! Government is only what you make of it. If you don’t want all of these regulations, let’s put a better person in the presidency and let your senators and representatives know how you expect them to vote. Reply
Your right Carol! This is a disaster and people better wake up.Govt healthcare doesn’t work,just ask Canada.Our freedoms are being infringed upon by this government. Reply
Government Health Care doesn’t work? You have got to be kidding me Medicare gives the biggest bang for the buck and is the cheapest insurance you can purchase! Open your eyes and quit repeating all this “Tea Party” gobble de gook.
uh….actually, Canadian government health care DOES work. Maybe you have a ‘Cadillac’ health plan. In which case you would probably have lost it soon. (Or maybe you are in Congress?)
You should get the facts before making statements that don’t reflect reality. Canada’s system works just fine (I’ve lived with it, and used it, and it puts to shame any program available in the US, including the ACA). Canadians may complain, but they would revolt if their single-payer system were taken away!
The most freedom infringing piece of legislation is recent history was The Patriot Act, and just who’s idea was THAT?
We will be voting but not for those who want to deny me the ability to purchase health insurance from an insurance company! If you are successful at taking away my one chance at getting health care my husband and I will be forced to get a divorce so that all of our assets will be his name. That way if something happens to me, you the tax payers will have to pay for it. As it is now we would be wiped out financially giving us nothing to live on in our senior years. Give Affordable Health Care a chance! Reply
Right now, employers can deduct health care premiums so that health care is “tax free” benefit. What happens if my employer cancels the employee group policy, pays us what it used to cost him, and tell us to go get Obamacare? Will we now get taxed on the benefit with both employment and income taxes, not to mention state and local taxes? Reply
Hi, Yes, if your paycheck is increased, you will have to pay higher income and employment taxes. Your employer can set up a Flex Spending Account for out of pocket costs so those can be tax free, but not for the insurance premiums. For more answers to your specific health insurance questions, visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
Do you know where it is written that employer policies currently are tax deductible for providing insurance? Thank you! Reply
I work for Walmart in Kansas, and with what I make and less than 40hrs. a week, I cannot afford their insurance, and my husbands boss does not provide insurance for his employers because of the price to cover them. what about people like us who cannot afford health insurance because of our income. neither me nor my husband make enough money to afford to be covered, even though we would like to have health insurance. Reply
Hi Sonia, You can see if you’re eligible for Medicaid or Catastrophic Health Insurance. Medicaid is a free or low cost health insurance. You can see if you qualify for both at https://www.healthcare.gov/ For more answers to your specific health insurance questions, visit http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
My employer pays 100% of my premium. My husband gets somewhat decent insurance (we still can’t afford the deductible, but if anything major happens, we won’t be homeless). However adding our son is really expensive, over $350 per month on either of our plans. Can I get coverage through the exchange for him? Our income is decent, but after child support my husband pays, our income drops significantly. Would they consider our gross income, AGI, or net after child support, daycare, health care costs? Reply
Hi Kara, You would be able to shop for your son’s insurance in the Marketplace. He may also qualify for insurance through CHIP https://www.healthcare.gov/are-my-children-eligible-for-chip/#state=california The Health Insurance Marketplace would use your Modified Adjusted Gross Income (Wages, salaries, any unemployment income, other sources of income, social security payments) less the child support paid. They would not deduct daycare or health care cost. For more answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
Would my 28 year old daughter who is a full time student and works part time be better of taking the medical insurance through Florida Atlantic University or should she go with Obamacare? Reply
Probably Florida Atlantic University. Review & compare the cost, the benefits and the costs your daughter or you will pay out of pocket for co-pays and deductibles. Make sure you look at the website http://www.healthcare.gov (that ends in .gov not .com). Reply
My husband and I have insurance through his employer. I have guardianship of my grandson, but they won’t cover him because my husband is not his guardian. I have no income of my own, but we file joint taxes, and I claim my grandson on our taxes. Will they use household income to determine the cost for my grandson’s insurance? Seems unfair to do so since his employers seems to think he, and so they, are not responsible for him. Reply
Hi Dawn, Since your grandson is claimed as a dependent on you and your husbands tax return the Marketplace would use household income to determine your grandson’s health insurance. For more answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
If you already have coverage as I have and paid for individually; YOU ARE NOT ALL SET! that is an untrue statement. I was recently notified by my health insurance company that because of ACA they were dropping my coverage as of Dec. 31st. I cannot keep my current insurance and I’m worried I will not be able to see my regular doctor and what this Obamacare policy will cost. Reply
Hi Shirley, Yes, that is true if your insurance company drops your coverage then you would have to visit the Marketplace and purchase there. Those that already have coverage and remain covered don’t have to do anything. Thank you, Lisa Greene-Lewis Reply
I am a veteran and covered by my Va benefits. How does this impact my taxes and filling out taxes online? Reply
Hi Donald, Because you have coverage through your VA benefits, you don’t need to do anything more, and your taxes will not be impacted by this. For more answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
I am in the same boat I have insurance mykids have chip my wife has none but she has no income of her own will I get fined Reply
Hi Clinton, If your wife does not get insurance coverage, she will be fined when she files her personal income tax return in 2015. For more answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
Clinton. It is my understanding that if your wife has no income and you file jointly then you should probably put your wife on your insurance plan. If she goes without, then you would be “fined” on your taxes. If that is not an option then she would have to get her insurance through the ACA based on the joint income status, which you probably would get tax credits for Reply
The video was great,very helpful. The background music however was terrible and distracting. Try to tone it down a bit. Thanks. Reply
I am a USA citizen living in Mexico fro the past 3 years and have my own USA health policy but want to drop it it and buy Mexican insurance, which is much lower in cost. If i do this, will I be required to USA insurance as well? Reply
Hi, According to http://www.healthcare.gov – U.S. citizens living in a foreign country are not required to get health insurance coverage under the Affordable Care Act. If you’re uninsured and living abroad, you don’t have to pay the fee that other uninsured U.S. citizens may have to pay. Generally, health insurance coverage in the Marketplace covers health care provided by doctors, hospitals, and medical services within the United States. If you’re living abroad, it’s important to know this before you consider buying Marketplace insurance. For more answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
I still have a USA residence where my two sons live and they both have jobs. I am in Mexico, but have USA private insurance. One son is insured by his employer, but the other age (26) has no insurance. How would He calculate “house hold income”? The only income that I have amounts to about $12000/yr. from investments. Also: how does the government know that I have my own USA insurance(which I may cancel) and if I do cancel and get Mexico insurance, how do they know that I live outside of the USA, when I still file taxes with my USA address where my son’s live?
Thanks you for this information!! Turbo-Tax rocks and this clear explanation answered all of my questions….keep up the good work! Reply
My husband has insurance threw his company and my kids get chips but I have no insurance what are my options I live in Texas and we make about 29k a year Reply
You can check out the Marketplace for Texas here – https://www.healthcare.gov/pre-registration.html It will let you know what policies you qualify for and what benefits are available to help you pay for your policy. Reply
Who are the few exceptions? I heard that ordained ministers could opt out like they can with social security, is this true? Reply
There are exemptions for those who can’t afford coverage, those with low household income, members of federally recognized Indian tribes, individuals who experience a hardship, individuals who experience a short (3 months or less) coverage gap, incarcerated individuals and individuals who are not lawfully present in the US. There are also exemptions for the members of q Qualified nonprofit health care sharing ministry and for members of certain religious sects. The certain religious sect must be recognized by the Social Security Administration, so it isn’t quite like ministers who just file the form to be exempt from Social Security. There is more to it. I would start with your state Marketplace to see if you qualify for exemption. Reply
I am employed by a local Electrical Utility Company. My wife recently started working for an insurance firm as a 1099 employee. What expenses are allowable for deduction? Mileage to and from her office? Client Luncheons/Dinners? Equipment such as tools, computers, laptops. For example she just made cookies for an open house her firm is sponsoring. Can that be claimed and to what degree…the natural gas stove used to bake the cookies, etc, etc,,,, Reply
Hi Thomas, The answers to your question depend on particular circumstances. If your wife is required to work at the insurance company office, here mileage will not be deductible. If she is required to provide a home office, and meets all of the qualifications for deducting a home office, then the mileage may be deductible. If she is paying out of her pocket for client luncheons/dinners and keeps the proper documentation – who, why, how much – she can deduct those on her schedule C. The cookies for the open house – just the ingredients, unless you have some handy-dandy way to calculate the amount of fuel she used in baking the cookies. If so, add that in. Other supplies are deductible, but computers, laptops, and cell phones will need to be depreciated, and you need to separate personal use from business use of the computers unless they are in a qualified home office. You can find additional information at this blog – http://blog.turbotax.intuit.com/2011/03/08/tax-tips-for-startups-and-entrepreneurs/ Reply
Thanks for the information. It was very helpful. Seems like most of the answers lie in the fact that we really just need to use common sense and logic.
Another question for you in reference to my wife working as a 1099 employee! We’re in Pennsylvania(residence). We have a local E.I.T. (Earned Income Tax) rate of 1.5%, State income Tax of 3.07% and then her federal portion. I’m figuring on socking away 30% of her salary to cover all those taxes. Is this too much?
Thomas, Self employment tax rate (social security and medicare) is 15% (after the deduction) on net business income, plus your federal income tax rate. If your federal tax bracket is more than 10%, you may need to save a bit more for taxes.
Obamacare is an unconstitutional law. the best thing for everyone to do is to refuse obamacare, refuse to pay the fine, refuse to be bullied by obama and the irs. fight, to the death if necessary this illegal, communist, so called law. Reply
Strange how the US Supreme Court didn’t think it was unconstitutional. In fact they ruled just the opposite. Guess you know more than they do. Reply
Generally speaking. Once the SCOTUS rules a law constitutional they do not revisit it. So PPACA is constitutional. The abrogation of duty in regard to Congress powers of disbursement however may be putting Boehner in jeopardy. I do believe he is on the verge of violating the constitutions 14th amendment. Reply
You forgot to say refuse the Supreme Court, who found the law Constitutional. Oh….wait. But hey, if you fight to the death that means more room for normal people. Reply
The fee for not having insurance in 2014 is $95 per person or about 1% if single and your income is over $20,000 or over $55,000 if married . There are additional fees for uninsured children. For 2016, it will be about 3 times higher. Plus you are responsible for paying for all of your medical expenses if you do not have insurance. You can find more information at https://turbotax.intuit.com/health-care/ or https://www.healthcare.gov/what-if-someone-doesnt-have-health-coverage-in-2014/ Reply
Screw obamacare! Single 25 guy with 40k income not qualified for any subsidy..and the cheapest plan in NY is $3500 out of my own pocket because my company doesn`t provide any assistance with health insurance. In which way this is an “affordable” and how it`s now going to benefit me? Reply
I am self employed and have no health insurance. Last year my AGI was 23k (on about $98k of income). This year my income will hit approximately $150k so my AGI will be around 50k I presume. My Fiance, who I fully support has no job, no insurance, and no income. Am I better off making her an employee and providing insurance for both of us? Will tax credits help either of us? Are the credits better as a business than as an individual? Also, I live in one state but my official residency is in another. Do I have a choice where I get my insurance? Do I have to treat in the state that I have my coverage in? I work all over the country…. Thanks. Reply
Hi Mike, You can check out your options by going to the Marketplace to see which plan will be of the most benefit – hiring your fiance and providing insurance through your business, or claiming her as part of your household and getting insurance through the Marketplace. I would look at both your resident state and your non-resident state and see which doctors and hospitals are included, and which costs are covered. For more answers to your specific health insurance questions, visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
No health insurance? Uncovered health care costs are one of the biggest causes of bankruptcy. You are playing with fire. Talk to a financial planner immediately. Reply
It’s not entirely true that you will not have to do anything if you already have individual insurance. We were notified by our insurance carrier that we are required to purchase our policy from the marketplace because our current policy does not meet the new standards. Already our insurance has gone up 57% two years ago because of the requirement for our children to be able to stay on our policy until 26 years old. So our carrier began charging a “per child” cost instead of a “family” cost. Last year our policy went up another 28% because we did not carry maternity insurance since we already have children and do not plan on having more. Because of ACA, we not only have to pay maternity on my wife, but now it is on my portion as well! I am not sure what is being “upgraded” now, but I have this haunting feeling that my rates are going up once again… So this is the third time that I am not able to keep my insurance even though I liked it better the way it was. But apparently there was no for Obama to know that when he said we could keep our insurance if we liked it! Reply
Hi Frank, If your insurance carrier drops your policy, you will need to get insurance from another source, either the Marketplace or a private carrier. But if your policy is continuing, you do not need to make any additional changes. For more answers to your specific health insurance questions, visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
I am retired and on a fixed income. My wife works part time. No children at home. We are both in good health and carry high deductable policies. I was notified that our current health insurance policies would end on Dec. 31 and we can continue coverage under a policy that is similar and complies with ACA requirements. My premium is increasing by 83.8% and my wife’s premium is increasing by78.9%. I am very frustrated with this entire health care change. Reply
I have health insurance thru my employer. My ex lost job 5 yrs ago & is required to have health benefits for my 16yr old daughter but doesn’t. I claim her on my taxes. So exactly who will get penalized??? Reply
You should consider insuring your child. My ex was suppose to insure my son but hasn’t the entire 12 years of his existence but anything could happen so I insured my child versus him going uncovered. Your child should not be uncovered because of lack of responsibility of the other parent. Since you claim her on your taxes you will be penalized because you are the one getting the credit for claiming her. Be safe and insure your child or take your ex to court. Reply
I agree TBC. But, the sad part is, even with a court order the other parent does not ‘have’ to get the insurance. My advice to Theresa would be to get the insurance for your child and have it added into the child support calculation.
how do i estimate my 2014 income? my situation is kinda complicated. now my wife and i are both attending school and expect to graduate next year. so starting 2014, both of us will be looking for jobs. right now our annual income is around 15k which is qualified for the medicaid bracket, but most likely we will have jobs in 2014 and our real income for 2014 is much higher, lets say 60k for the year of 2014. so how are we gonna apply for the obamacare? what income are we suppose to estimate? what if we use medicaid for the entire year of 2014, and the real income end up being much higher when we file 2014 tax return in 2015? please help me. thank you Reply
Daniel, You can start with Medicaid, then go back to the Marketplace when you begin working to adjust your income. Hopefully you will have coverage through your new employer and will not have to buy insurance. If you qualify for Medicaid, you are not receiving the tax credit, so there will be no repayment if your income goes up. Reply
So i have until march31st 2014 to sign up- I turn 65 May16,2014 and will then be on medicare. What penalty will i incure? And should i sign up for this insurance? I am confused Reply
The penalty for not having insurance can be as high as 1% of your income. You can get insurance for the five months prior to being eligible for Medicare through your state Marketplace. As you are talking with Social Security, they may have more information for you, or you can ask questions on your state Marketplace. Reply