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” hello!,I love your writing very a lot! percentage we be in contact extra approximately your article on AOL? I require a specialist in this house to solve my problem. May be that’s you! Taking a look forward to look you. Reply We had to send my grandson to a school camp for troubled boys. He left in March, 2015 and will be there past Dec. The insurance only took care of part of it. Can we deduct the rest? The gas to take him and back home? We live in IN and we took him to UT Reply I purchased health insurance through the Marketplace. Can I still file a Health Coverage Exemption because I belong to an Federally Recognized Indian Tribe? Reply My sister and husband received ACA but now the husband refuses to file together because he thinks he can get a better refund on his own. He doesn’t understand that he can’t do that. Will my sister have to pay all the ACA subsidy? Reply From my experience, filing separate tax returns does not result in lower taxes, especially if they live in a community property state. He can certainly choose to file his tax return separately. If he does so, he will have to repay any subsidy he received. Your sister will only have to repay her share of the subsidy. If they have dependents, the individual claiming the dependent will repay that subsidy. Reply When my son was doing my taxes he put in my I insurance info and it said my household income changed or the household number changed but they didn’t . It also said they gave me to much money for my insurance. I don’t know what to do Reply My return was filed without line 61 being checked off. I don’t see a penalty being assessed. I tried preparing an amendment and none of the numbers for taxes owed/refund due changed. Is this correct? does the IRS assess the penalty separately from my 1040 filing? Should my 1040 has assessed a penalty? And if so, where would I see that? Thanks Reply Hi! I used 1040 tax and checked box 38A for full coverage but I remembered that I only have 11 months health coverage for 2014 (no coverage for November only) and my husband only started his medical health insurance through covered CA on March to Dec 2014. Do I need to prepare 1040x to correct the information? Thanks! Reply Hi, My wife entered US in the last week of December 2014. Shes is a non resident but I’m a resident for tax purposes. She doesn’t have any income for the year 2014. I am filing the tax as Married filing jointly. She doesn’t have any coverage for 2014 as she was practically here for 3 days in the year but has a coverage from Jan 1st 2015. Is she exempted. If so, how do I file for an exemption? Reply Atun, Go to the Health Insurance tab of the product, choose We were partially covered. On the next screen, you should see a series of check boxes for each person on your return. Mark the appropriate boxes, leaving all the boxes for your wife blank. On the next screen, scroll down to Wasn’t required to get insurance, and check the box for spent 330 days or more outside U.S., or Resident of foreign country or U.S. territory., whichever seems most appropriate for your situation. After you check the box, choose This only applied to, and then select your spouse from the drop down list. Answer the rest of the questions as they come up until you get to the Other tax situations screen and you will be done with all the issues related to health insurance. Thank you, Mary Ellen Reply Mary Ellen, I need to change my schedule c health care insurance amount on turbo tax 2014 home and business. The easy step procedure tells me to go back to schedule C, but when I do, I have to override the amount in item 15 to make the change. Isn’t there some place in the step by step process I can take it naturally without need for an override? Pat Reply This question about schedule C is for Turbo Tax Lisa as well. Thanks. Reply Pat, If you have already filed your tax return, you will need to prepare an amended return. Otherwise, you should be able to just change the original entry. You should go to your business entry point (Business Income and Expenses > Select [Edit] for your business > Select [Update] for Other Common Business Expenses > Select [Update] for Insurance Payments > Select [Update] for Health Insurance Premiums > Enter the correct amount on this screen. It will flow to the Self-Employed Health Insurance deduction on Form 1040, Page 1, Line 29. Reply Mary Ellen, Thankfully, I haven’t filed yet. Thank you for this very helpful information. The trick was finding that the self employment insurance amount was under “Other Common Business Expenses” since it showed $0 until I hit the tab, and it then brought up Insurance. You saved the day! Best Regards, Pat I have medi-cal starting March,2014. Do I have to file for exemptions? Reply Hi Susan, No, since you were uninsured for less than 3 months you would automatically be exempt through your tax return. You don’t have to file for an exemption. Thank you, Lisa Greene-Lewis Reply I had to call marketplace a dozen times to get tax form? I was on call for an hour and lady tells me I should never have gotten a subsidies bc I made too little and she sent something to medicad and told me I had to pay back the $6000 to its now? I told her I reciev Workcomp pay and called marketplace about that and the 2 month job I took before 2 surgeries.She said that Workcomp (TYD) doesn’t count! I Believe it was about $10500 I made between 1 month of unemployment, 2 month job & now Workcomp pay that ends next month! How am I to pay it all back and do they take my student loan money too? I go to college part time to try and get a degree. I’m now 57 years old. Thanks Reply I am a stay at home mom with two uninsured children. My boyfriend supports our family but he can’t cover the children under his insurance since we aren’t married. My ex husband was ordered to provide insurance for the kids but he continued to give me the run around for months. Making me believe he had them under his insurance and then changing jobs and phone numbers. Now that I need to file my taxes I was wanting to know if I will be penalized. Reply Felecia, The penalty will be assessed against whomever claims the children as dependents. If your boyfriend is claiming you and the children as dependents on his tax return, he will be penalized if you should have been covered. If you are filing a tax return and claiming the children, you will receive the penalties. If your ex-husband is claiming the children, he will be penalized. The penalty will be based on income. The minimum penalty for you is $95 and for each child is $47.50. Reply I am self employed. I have always paid for my own health insurance. I was able to keep my insurance until the end of August 2014. I enrolled in the Market place at that time. Do I still take all my premiums for the whole year for “self-employed health insurance” on line 29 of the 1040? Reply I must include non taxable income from property settlement (divorce) to my tax reurn. Where do I show this? Reply My wife turn 65 in July 2014, She had Private Health Insurance for the first 6 months and has a 1099 that reflects half the year coverage. She applied and received Medicare from July to December of 2014. How do I enter my wife’s half year with private health insurance and the other half covered by Medicare with Turbo Tax. I have been unable to have Turbo Tax accept my entry allow me to file via E File. Reply I got my 401k money out in 2014 and paid the 20% taxes. my wife is on Obama care insurance at a lower rate but the 401k money made our earned amount for her to get the reduced rate to high for the amount she had been paying so when we filed we had to pay the full rate that was taken out of what our tax return would have been. Reply My parents are retired and do not file a tax return because their income falls below the minimum amount. Do they need to file a return for 2014 so that they can check the Health Care box to show that they have coverage? Do they need to complete any other parts of the 1040EZ – Income, Payments, Credits and Tax??? besides their identification part and signature part? Thanks. Reply There is no need for them to file a tax return just to show they have coverage. Reply what is the hold up on taxes that has already been filed concerning the obama health care. This year is the first year that i had to filed it on my taxes and now thaey say it is a hold up on many people tax refund beacause of the health care act can you clear this up for me please. Reply I like your ideas about reducing costs in the health care system is too good Reply good post for health friends Reply My husband and I have insurance through Obama Care. We are both employed but i slso have a side business (which makes me self-employed). My question is this…..can i deduct the premiums we made to purchase the insurance on my 2014 taxes? Thank you! Reply Lisa, Can anyone explain why the exemption application form won’t create after all data is entered in turbotax? Many people (including myself) have posted this issue on the site, but none of the questions have been answered, after several weeks now. Reply if granted exemption can i go ahead and tick the full coverage box on line 61? As said before my husband has full coverage and I have exemption based on the fact that I had no coverage in 2014 for the months leading to enrollment and I enrolled before May 2014. Reply My husband has Medicare benefits and so did not have to apply in the affordable healthcare plan. I am under 65 and had no coverage . In 2014, I applied for a health care plan in the Marketplace and paid the first premium in April so my insurance started May 1, 2014. WHen filing taxes, I was asked to pay a penalty 0f $413. But I checked the Affordable Care Act and found that since I was without coverage in 2014 only in the months prior to enrolling in coverage that was effective before May 2014, I could apply for an exemption and I had to complete part III in form 8965. My accountant submitted the form but I still have to pay the $431. Why is that ? I do not know whether I am missing some thing somewhere. Reply Hi Pearl, Yes you can qualify for an exemption if you are uninsured for under 3 consecutive months. Since the deadline for 2014 enrollment was March 31, 2014 it looks like you should get the exemption. TurboTax automatically fills out the forms for you and gives you the exemption if you are eligible when you prepare your taxes with TurboTax. Here’s more information on exemptions https://blog.turbotax.intuit.com/2014/12/30/6-top-affordable-care-act-exemptions/ Thank you, Lisa Greene-Lewis Reply I signed up for health insurance through the marketplace in March of 2014 because with my income I qualified for a tax credit to help cover the cost. In October 2014 I cancelled through the marketplace because I secured employment with my a new employer that provided health insurance. In late November and early December I received two bonuses from a company that had laid me off in 2013 and they were now completely closed (reason we received bonuses). I was going through process of filing my income tax and completed the 1095 form for the tax credit and my refund went from 2600 to 300 because now the government wants me to pay back the credit I received. I’m confused? How could they expect me to pay back the credit? When I was getting the credit I wasn’t making enough money to pay the full premium. When I got a better job, I immediately cancelled the marketplace coverage because my employer offered me coverage. And the bonus came after I had cancelled the coverage through the marketplace. Reply Jlynn, The premium tax credit is based on annual income, not monthly income, so the credit you received based on your income before the new job and the bonuses is being recalculated. Mary Ellen Reply I was off work last year for 6 weeks and had to pay for my own healthcare out of my pocket and was wondering if that would be tax deductible ? Reply Steve, Medical insurance premiums and co-pays are deductible medical expenses. Mary Ellen Reply I want to claim my friend as a dependent. He has no income and no health insurance. I have health insurance thru my employer, do I have to pay a penalty because he did not have health insurance or would he qualify for a exemption because of the income threshold and if so how do I report that on my tax return? Reply Sue, If you claim your friend as a dependent, he is considered a member of your household and you would be responsible for the penalty if he is not insured and does not qualify for an exemption. He would need to include your income in applying for coverage on the exchange. Mary Ellen Reply I support an adult child who does not live with me. They do not have insurance. Will this affect me If I claim them on my taxes? Reply Jen Bo, If you claim someone as a dependent on your tax return, they are a member of your household for purposes of the ADA and you would receive the penalty if a member of your household is not covered by insurance. Mary Ellen Reply My husband and I are separated and have been for many years. However; he is military and the children and I are covered under tricare. Are there any forms that I need for filing my taxes for healthcare. How does affect our taxes as we both file head of household? (We were advised that was legal as we both maintain different households and have only remained married for the health care.) Reply As long as you do not live together, and you each provide the home for a qualifying child, you can both file as head of household, and not married filing separately. You will only need to provide the information that you and your dependents are covered by employer-provided insurance. Reply Does a dependent need to claim the market place tax credit when filing a tax return? Or just the head of household? Thank you. Reply Beck, The head of household, or the person claiming the dependent, is the one required to ensure that all the members of their household are covered and they will claim the premium tax credit on their return when they file. The dependent will not need to report anything on their separately filed tax return. Reply I signed up with Healthcare.gov at the beginning, Alaska does not have a state exchange. We are self-employed (wife and myself, no one else in household), run a business that is intertwined with our personal taxes. Our income on paper varies a lot year to year, depending upon depreciation and business projects/write-offs, and has gone above and below the $77,000 cut-off for tax credits for a couple in Alaska. For upcoming year, we need to provide income varification, and I don’t have any of what is listed by the exchange as documentation they accept. What’s the best way/best paperwork to submit to show income, but also indicate that upcoming year may vary a lot? We do not collect paychecks, just work the business. Also, if we went over for 2014, will we need to pay all of the credits back? If so, that makes our health insurance back to unaffordable, the cost would be 25% of our net income. Reply Jon, You can use your income tax return to verify your income, although it doesn’t show the monthly fluctuations. And you could add a schedule of your self-employment income for the last several years to show the annual fluctuation. If your income exceeds 400% of the poverty level for your family and state, you will have to repay any advance premium tax credit you received. You can use the cost of the insurance exceeding 8% of your income to request an exemption for 2015. Mary Ellen Reply If you as a married filing jointly made 1900 but your spouse made much more, do you have to add your income to the total. I always assumed that if it was under 3000-5000 it did not need to be added Reply Theresaa, All income, no matter how small, is supposed to be reported unless it meets certain tax rules for being tax free, like insurance pay-outs, or some social security benefits. Your $1,900 of income should be reported on your joint tax return and will be considered as part of your household income in determining eligibility for premium tax credits. Mary Ellen Reply Does a disability settlement count as income we waited two years for it to settle Mike, The amount of time you waited for the disability settlement will not have an impact on whether or not it is taxable. What will impact it is who paid it. If you were paid by an insurance policy you purchased, it would be tax free. If it is Social Security Disability, it is treated just like Social Security Retirement benefits and may be taxable depending on the total income from all sources. Workers Compensation disability payments are usually tax free, as are military retirement disability payments. If you receive a 1099 or W-2 reporting the disability income, the most likely reason is that it is taxable. Under the state section it offers an area on turbo tax where you can enter medical insurance premiums…see pasted example….Enter Any Health Insurance Premiums Enter the total, if any, you paid in 2014 for all qualified long-term care insurance premiums and health insurance premiums. Do not include self-employed health insurance premiums or Medicare premiums. My question is I have marketplace insurance because I am not married and my employer does not offer insurance. I took a monthly advance payment, but still had to pay 709.56 out of pocket to pay for the premium? Do I put this 709.56 in the state section or not? I noticed in the federal portion is said do not list marketplace info under the medical expenses section. Thank you for your time. Reply Beth, Yes, you would put your out of pocket premium in the state section. The marketplace info they mention in the federal portion is who your provider is and information of that nature, not the premiums paid. Mary Ellen Reply What happens if filing married jointly and the main income earner has no insurance but the second and children do? We can’t file seperate because we won’t get the child tax credit if seperate. Reply Hi Jeni, There will be a penalty on the one person without insurance, but not on the others, unless there is an exemption for the one without insurance. TurboTax will help you through all the appropriate forms and questions to calculate the right amount of penalty. Mary Ellen Reply My husband and i had health insurance together all last year . We received the subsidy from the affordable care act. We normally file seperate. How can we file”besides joint”, that neither of us will be penalized. Reply Evely, If you were covered all year, you won’t have penalties for non-coverage. If you live together all year, then filing jointly is the only way to qualify for subsidies. If you are not going to file a joint return, you should not request advance premium tax credits in the future. Mary Ellen Reply And what happens when the Supreme Court later this year rules that the wording of the law really is the wording of the law and disallows the subsidies in the 30+ states that did not set up their own exchanges ? i have a live-in lady friend who has no income and is completely dependent on me. she has several mental conditions that make it impossible to work. she has many outstanding medical bills that she has no means to pay. in the stste of tn. she has been denied any coverage thru medicaid. i also pay for her doctors. office visits and her medications. she filed for disability in october 2013 with ssa and has been denied several times. her claim is under appeal and she is waiting on a hearing with an ssa judge i also have two adult sons that are not working and are completely dependent on me. i’m 74 and i get my ssa benefits and also have to work full time to make ends meet. i have medicare and a supplemental policy for my self, no coverage thru my employer. i will be claiming them all as dependents, as they were dependent on me the entire year. when i file my return will i be taxed for the fact that they have no health coverage? Reply John, You are responsible for seeing that everyone in your household is covered by insurance, and by claiming your sons and lady friend a dependents, they are part of your household. You will be penalized for anyone who doesn’t have coverage when you file your tax return, unless they qualify for one or more of the exclusions. You can learn more about the exclusions at https://blog.turbotax.intuit.com/2014/06/03/who-qualifies-for-a-penalty-exemption-under-the-affordable-care-act/ Mary Ellen Reply John, You will be assessed a penalty for every member of your household who does not have medical insurance or does not qualify for an exemption. For more information about exemptions – https://blog.turbotax.intuit.com/2014/06/03/who-qualifies-for-a-penalty-exemption-under-the-affordable-care-act/ Mary Ellen Reply I had health insurance as of may 1rst which I was told I would be good and not have to pay any penalties’. I recently tried doing my taxes online at turbo tax. When I entered my health care coverage. It took $500 + from my refund therefore I did not file them. I am really thinking about doing my taxes elsewhere because I cant take that big of a hit. Why is it penalizing me? Reply Mark, Be sure you go through the exemptions to the penalty section. You could have a small penalty. Are you having to repay some of the advanced premium credit because your income is higher than you projected when you applied for the credit last year? Mary Ellen Reply The ACA law says the penalty for no insurance can only be taken from excess withholding. I will have no excess withholding. Will I still owe and have to pay the penalty? Reply Greg, Although they cannot enforce the collection of the penalty, it will remain as a liability on your account, and in the event you ever have a refund due in the future, not just from withholding, but from estimated tax payments as well, they will apply that refund to the liability. Reply Thanks to my father who informed me regarding this web site, this weblog is really remarkable. Reply how will 1099-R forms affect the subsidy? I may be facing a situation to cover my children’s education costs, healthcare premiums, and save my home from potential foreclosure and will need to withdraw from my 401k to stay afloat. will that count as income and cause even more penalties and fines by the government just to keep my head above water next year (2015)? Reply In my experience, any monies received from a 401k is counted towards your gross income and will be taxed. Depending on the servicer, you may opt to have taxes taken out when you cash out. The servicer will send you a form to file with your taxes that indicates how much has been taken out and any taxes withheld. If you use turbo tax, it is easy to add all the information in and calculate everything accurately. I had to do this in 2013. (401k’s are not taxed when contributed, but are taxed when cashed out). Reply I am married and covered by insurance at work. My husband has no income and does not have insurance. If he gets the so-called affordable care, does my income count as his? Reply If I have medical insurance but I do not have dental insurance (pediatric dental) will I be subject to a penalty when I file my taxes for not having pediatric dental? Thanks Reply yes Reply Very nice article. I certainly love this site. Continue the good work! Reply Thanks regarding offering these sort of fantastic articles. Reply My employer only pays 50% of the group premium. In lieu of a salary increase they want to add the additional 50% to my gross wages and then deduct it pre tax to pay my share. What are the advantages to me rather than them just paying the 100% and not run it thru my payroll check. Reply Hi Helen, It sounds to me as though your employer currently pays 50% of your premium and you pay the remaining 50% as a payroll deduction. So if you are making $500/week and your share of the premium is $25/week, you have all your payroll taxes withheld on $500, and then the $25 premium is deducted. If your employer wants to add the additional 50% as wages and then deduct pre-tax, your gross wages will be $525, your premium will be deducted, then your payroll taxes withheld will still be based on $500 wages. Under your current plan, if the taxes are $50, you would take home $425. Under the new plan, you would take home $450. Thank you, Mary Ellen Reply Hi Turbo TaxLisa, Is the amount that I receive from the tax credit subsidy considered Taxable Income in the state of PA.? Thank you, Geoff Reply Does anyone monitor these questions? I posted this almost 2 months ago and no reply Reply I have posted numerous questions over the last couple of months to which I have received no answers. I have no idea whether the folks at TurboTax monitor this blog or not. If so, then they are just very picky about what they want to answer. Geoff, The tax credit subsidy will not be taxable income in any state. Mary Ellen Reply We receive the affordable health care tax credit for low income earners. If we file our taxes late what effect will this have on us receiving the tax credit? Reply Hi Gideon, If you receive an advance premium tax credit or are eligible to claim the tax credit on your taxes that you received in 2014 on your 2015 taxes then you would have to file your taxes. In addition, anyone that has a tax filing requirement for example income over $10,000 if single and $20,000 if married filing jointly has to file their taxes in order to receive the credit. Thank you, Lisa Greene-Lewis Reply If you receive a tax credit that pays for your health ins each month under obamacare does that mean I will no longer receive my tax return ? Reply Janice, When you prepare your 2014 tax return next year, you will calculate the exact amount of subsidy you are entitled to. If the subsidy you actually applied to your premiums is more than the subsidy calculated, the difference can reduce your refund. If your calculated subsidy is more than you received, you will increase your refund. Reply Hello. I just do not understand. I am self employed and for 2014 I average a little over 14,000 for my business due to the fact that I did not open and operate until the 4th or th month lastyear. I recently signed up on the market place and I was approved for a tax credit of $239.oo for a family of 3. The qualification for a family of 3 is 19,000 and above. Will I be penalized if I make less than 19,ooo. For tax year 2014, if I am self employed and purchase a policy through the marketplace paying 100% of the premium, can I deducted the premium as an expense on my taxes in 2014? Currently in 2013 if I am paying 100% of my premiums and show a profit, these premiums are deductible to reduce my income. I can not find anything that answers this question for me. Reply Hi Michelle, The Self-employed health insurance deduction is still available. If you receive a subsidy from the marketplace, you will need to reduce your deduction by the amount of the subsidy. Reply My only income is from social security disability but I have only been on it for one year and can’t get medicare until I have been on ssd for two years . The ssd is not taxable income .I make $1200a month on ssd and can’t afford to pay the premium on the healthcare and still pay my bills and utilities .the healthcare marketplace said I could not get a tax credit discount ,I make just over the limit for medicaid in my state of tn.This affordble healthcare is not affordable at all. Reply Hello, My wife and I now receive medical benefits under the affordable care act. My question is that we cannot file tax returns “married filing jointly”, and must file “married filing separately” due to the fact that my refund is always kept by the federal government due to a large legal debt that I incurred long before our marriage. Does the ACA demand that we file jointly in CA, or can we still file “married filing separately” without losing the medical benefits? I am not concerned with paying higher taxes, but I am very concerned about affecting my wife financially. I don’t want to file an innocent spouse claim after the fact, as I just don’t want to effect her with this. Reply File 8379 Injured spouse with your federal tax return and you can file together and it wont affect her portion at all. Reply Chris, If you file Married, Filing Separately, you will not quality for any of the premium tax credits available. Mary Ellen Reply File the injured spouse at the same time as your taxes. You don’t have to wait after the fact. Although CA will still take a portion but not all of what you owe because its a state that does that. I cant remember exactly why or what it officially is called. But it is what happened to us last year. Reply My husband and I are at about 300% poverty level. I m not insured, my husband will start medicare from june. Our adult son is unemployed, files his own tax return, and is depended on us, and is covered under medicaid. If we include him as dependent on our tax return, will he loose his medicaid coverage ? And if we include him in our tax return, it will bring our income below 250%, will i be eligble for medicaid or any other subsidy ? Thank you. Reply I make $32,000 a year. After taxes it figures out to about $1900 a month. By the time I pay rent, food, car insurance, water, electric, gas heat, gas car…. I barely have $250 left over. How am I supposed to pay $325 a month for insurance, what happens if my car breaks down. I’m being asked to pay over 15% of my take home pay for insurance, that has a hefty $2500 I have to pay before the insurance actually starts paying for anything. Thats all add’s up to nearly 25% of my take home pay. How is this considered Affordable? I see who its affordable for, not me thats for sure. I suppose Obama wants me to eat Ramen for breakfast lunch dinner. Tell the truth Lisa, or are you afraid to tell people the real truth and the real math. Reply Hi, my wife and I are both covered under insurance by her employer. However her’s is free and mine is $100 per pay period. I’m retired and and should receive free medical, but why does the IRS require us to file married, when in fact we could file separately. When I ran my numbers through the Gov site, it said I was eligble for a $8000 a year credit. Our current insurance is 70/30 and $2500 out of pocket. This insurance is in case you get ill or something major, not for basic health, there is no copay allowed. Isn’t that just a little bit criminal. Why won’t the Government post the numbers on what people will be paying based on their estimated incomes so they can see whether to deny Insurance from their company when they can get a much better deal from the Afforadable Plans. Reply Can an employer cover medical insurance on an employees child every year if the employee is divorced and only gets to claim the child as a dependent every other year? Reply if an employee pays 50% of medical insurance of an employees child (dependent) and the employee is divorced and claims the child as a dependent every other year, can the employee still cover 50% of the childs medical insurance on the years the employee does not claim the child on their income tax as a deduction? Reply Hi Lena, Yes the fact that the employer covers 50% of a child’s medical expenses does not relate to the employee claiming their child on their taxes every other year. It is still their child and can qualify to be covered on the insurance plan. Thank you, Lisa Greene-Lewis Reply I have insurance under the Marketplace and pay $81.00 per month. I was informed by my tax person that my refund is being help up because the IRS will be taking some of my refund to offset the additional cost of the insurance., The total cost of the insurance I have is $160 a month but I only pay $81.00. Have you heard of anyone else going through this Reply My boss wants to reimburse me for the health insurance costs. I have gone to healthcare.gov and submitted the costs to him and he wants me to pay and he will reimburse. Wouldn’t this be considered income and be taxable to me? Reply Kim, As long as your employer has a Section 105 plan in place, the premium reimbursement will be deductible to him and not taxable to you. Setting up and maintaining any benefit plan can be complex and he may want to consult with his accountant or payroll service for the requirements. Mary Ellen Reply can therealkim still get premium tax credits from ACA? sounds like that would be too good of a deal? employer writes it off, not income to employee, and employee can get tax credit for health care premiums?? I posted a question on 3/10/14 but I do not see mine and any questions here after 2/28/14. Please advise when the answer will be available. Thank you Reply I am unemployed and cannot afford health insurance. If i am put onto my parents taxes, Will my penalty of not having health insurance come out of their income? Reply We claim my parents as dependents, they are 73 & 76, green card holders ( not citizens), no income at all or Medicaid. I am unemployed now and cannot afford to buy insurance for both of them and cannot push my husband to buy insurance for my pants ( he already supports them and me now, since I am not receiving unemployment benefits). I am covered by my husband’s company insurance. Will we get fine if parents do not have coverage? Is there any subsidy for them in our case? What if we will not claim them as dependents in 2015- any penalties for them for not to be insured? They have NO income! What is the solution??? Reply If they are claimed on your tax return as dependents, you are required to see that they have insurance or pay the penalty. The penalty for each uninsured individual will be $95 or 1% of income, whichever is greater. In determining if they qualify for a subsidy, they will have to use your husband’s income. If they are not your dependents, they may qualify for assistance in obtaining insurance. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com. Mary Ellen Reply Can me and my husband file our taxes separately for 2013 or should it be filed jointly? Obamacare needs married couples to file jointly to receive the benefits. Does it include 2013 tax return ? Reply Megan, You can file jointly or separately, whichever is the right filing status for your personal situation. When it comes time to determine if you or your husband are entitled to a subsidy for health insurance premiums, you will need to use your household income, which will include both of your incomes, even if you choose to file separate returns. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com. Mary Ellen Reply As Mary Ellen indicates, whichever way you and your husband file, you will be using your household income as long as you are married. Divorced and co-habitating, neither you nor your ex would have a spouse and so filing separately, you each would use your individual incomes. As long as you are under the 400% of the Fed Poverty Line, the latter course is the way to maximize your subsidies. Reply My employer recorded the amount we put into our healthcare savings account (HSA) on my W-2. They’ve never done that before. It used to only be reported but not as income. Now it is code W. It’s pre-tax dollars but now it’s being taxed. What changed in the way that my HSA is reported to the government? Reply Jeff, According to IRS Pub 969, “An HSA may receive contributions from an eligible individual or any other person, including an employer or a family member, on behalf of an eligible individual. Contributions, other than employer contributions, are deductible on the eligible individual’s return whether or not the individual itemizes deductions. Employer contributions are not included in income. Distributions from an HSA that are used to pay qualified medical expenses are not taxed.” Even though you are seeing the amount of the contribution on your W-2, that does not mean it is being included in your taxable income. The amount is used to determine the amount of deduction you can receive for HSA contributions you make on your own behalf. It should be entered on Form 8889, Part 1, Line 9. TurboTax will take care of that for you. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com. Mary Ellen Reply Reading several comments here, contrary to my belief, it seems that a married couple, that always filed as “Married Filing Jointly”, cant simply choose to file federal tax returns as “Married Filing Separately” starting from 2014 — just so that a low earning spouse can get maximum/or greater tax credits for health insurance premiums thru the new marketplace system. is that true ? Expert advice on this will be sincerely appreciated. Thanks. Specifically, retired husband, who has Medicare coverage, has 60,000 in income from social security, interest & mainly from IRA draw downs/distributions. Wife who has no health insurance coverage at present, has a small variable business income & interest income in her name — both collectively totalling say about $ 12,000. If wife files her tax returns separately, she can get the maximum/or much larger tax subsidy for health insurance coverage. Is that permissible ? Or for subsidy determination purposes the joint incomes of husband & wife will/must be considered in lieu of just the wife’s income since she filed as a single person ? Thanks agin for the wisdom. Reply Jeeti, For purposes of the subsidy for health care, your household income is used. That will be the income of you and your spouse, even if you use the Married, filing separately status when you file your return. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com. Thank you, Mary Ellen Reply With you on Medicare, your wife with your combined household income (as Mary Ellen has explained) would put you two over the 400% of the Fed Poverty Line and so allow your wife zero subsidy to pay for health insurance through your exchange. In applying, she would be obliged to use your combined household income because you are her “spouse.” Now, if you divorced and there was no longer a spousal relationship, she could apply on her own. But with only about $12K in income, she would be assigned to Medicaid. Now, Medicare is gradually becoming Medicaid Plus, and so the both of you could find yourselves in the same doctor’s office with essentially the same “healthcare” going forward. But if that is not desired, then after a divorce, you would need to get some of your income-producing assets into her name to raise her income above the 133% of the Fed Poverty Line so that she could get a subsidy to bring down the high cost of a healthcare plan better than Medicaid. Reply My son who will turn 19 mid march will lose insurance under my husband 3/31/14. He will not be claimed on our tax return for 2014 because he is not a full time student. Husbands employer wont allow us to pick him up on COBRA with the rest of the family when we start COBRA 4/1/14. He would have to purchase his own COBRA plan at the same price they are charging us (approx 16K for the year). I applied on marketplace for him and put he was filing his own return and couldnt be claimed as a dependent. It then asked if he lived with parents and other brother/sisters then proceeded to ask all the income for everyone. He is not working right now so he has no income. The results came back he was eligible to purchase through marketplace but was not eligible for subsidies. Total family income is below 50K. My question, should he have applied on his own or should i have applied and asked for coverage under my application? I’ve called the marketplace and they said they can’t give me how the income numbers were run just what the results are. Does anyone have any suggestions for this scenario or have similar situation? Why should he have to include our income if he isn’t our dependent? Reply Hi, I’m so confused, I can’t find a straight up answer to whether or not I will get my refund without being covered yet. I can’t afford to start paying for healthcare WITHOUT my refund, so it’s a catch22. So, without healthcare, I should be expecting my refund in my bank account soon still, correct? I have been tracking my refund for over a week, over half the people who filed on my same day have received theirs, and now there isn’t an option to track it which leads me to believe I should be receiving it, yet it’s not in my bank account right now, but there’s still a button for “get coverage.” Is choosing a healthplan required before receiving my refund. I’ll pay the fine if I have to, I just need my refund! Thank you. Reply Matt, There is no penalty to be paid for 2013. It starts with 2014. The IRS states that 90% of all refunds were received within 21 days last year, and they expect the same results this year. Your refund should be deposited to your bank account within about 3 weeks of filing your tax return. You need to be covered by March 31 of 2014 to avoid any penalties when you file your tax return in 2015. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Mary Ellen Reply What is the penalty for not having insurance in the following case. 2 Adults and 3 Kids. Only Husband has insurance (thru company) Wife and kids does not (company provides but declined) Only Husband earns – 80k A friend said only penalty is $95 for wife. As per my reading, it is 1% of family income or $95 per adult plus 50% for kids whichever is greater. Here since wife does not have income does it matter. So the final penalty is 800 or 237.5 (95+47.5+47.5+47.5) ? Reply Just make sure you have no refund due when filing next year. The Unaffordable Uncaring Act provides no legal recourse for the IRS to collect any penalty from you except by withholding any refunds due. Reply Joseph, Your penalty could be as much as $2,000. 1% of 80K for spouse and .5% of 80K for each child, a total of 2.5% of your income. The insurance credits are based on the household income, not just the income of the uncovered individual. Mary Ellen Reply Now that the White House has effectively killed the individual mandate, just claim an unaffordability or hardship exemption and forget the penalties. Reply In the year 2013, I got health insurance through my job, and they stated they will give health insurance to the dependent (spouse) but it was delayed finally she covered in the month of Jan 2014. She had DNC (dilation and curettage.) due to miscarriage in the year 2013, the medical expenses around $15000 were paid by myself as she did not have insurance. Our Household income is $60,000. Are these Medical expenses Tax deductible? What will my penalty be (now she has Insurance)? Thanks in advance Reply Hi Chetan, The expenses you paid for your wife’s DNC are deductible medical expenses. You should include them in your itemized deductions. You should not have any penalties for not having insurance for you wife in 2013. The requirement started in 2014. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Mary Ellen Reply I think that I am in a catch 22 situation. My wife and I have an income slightly above $50k but our MAGI will come in around -$500,000 carried forward from my past business losses. Does this mean that although I can apply though the market place I will not get a tax credit? It is a truly ridiculous situation as I can not afford $1100 per month that was quoted. Only other option that I can see is to get a divorce that way at least my wife will be covered. Thanks Reply These are presumably non-passive losses, and the carry forward and recognition provisions of the IRS Code may give you little leeway with the result you indicate for your 2013 MAGI. The divorce option, such that you and your wife could file separately, is one way to improve your situation. Staying married, with a negative MAGI, you both would presumably be placed within the Medicaid system. Divorced, with your wife declaring enough of the $50K income to get her above the 133% of Fed poverty line, she could presumably qualify for a subsidized health insurance plan, leaving you to find out how wonderful Medicaid is. Good luck to us all. Reply I had health insurance all the way up until the end of January 2014. I am getting estimates on new health insurance but don’t currently have any. If I do my taxes now, without having any health insurance, will there be a penalty or will it affect my refund? Reply Hi Dustin, There is no penalty calculation with your 2013 taxes. For 2014, you have the possibility of penalties if you are without insurance for more than three months of the year. That penalty will be calculated when you file your 2014 taxes in 2015. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Mary Ellen Reply My question is for this year in filing your 2013 taxes, will you receive a credit for having insurance with your refund because I heard you would, but I did not see that on my taxes when I filed? Then, how is the government going to find out who has insurance and does not in order to penalize them? Reply Charay, There are no insurance premium credits for 2013. They will be in the 2014 tax filings. Insurance companies will be reporting who they covered to the IRS for assessing the penalties and calculating credits. Mary Ellen Reply I’ve had a pricey individual insur. policy for past few years (in CA) but am about to complete an ACA app. today. However I have yet to file my 2013 taxes but will next week – just after the ACA 3/31 deadline. When the online CoveredCA app asks if I filed taxes “last year” 1) does this mean 2013? Or do they mean ’12? 2) And since the technical answer is “no, but I will by 4/15” how should this be answered on the form before 3/31? Related question: I’m checking with a parent tomorrow, but I MAY have been claimed as a “dependent” in 2012 (no earned income, thus no tax return filed) – but will be filing in 2013 (though income was on the lower end). Given these last 2 years of varying tax status, will this in any way affect my eligibility for a Silver Enhanced (subsidized) plan? My thinking on the above is that the application is asking me if I filed taxes in 2013 (my intention is to say “yes” and get them within the week after the ACA deadline) AND my hope is that the past “dependent” status won’t affect my subsidy eligibility since I’m filing a 2013 tax return (and since by most “am I eligible” calculators I seem to qualify for some subsidy based on income). Am I right re: these 2 assumptions? Any considerations I should . . . consider . . . as I finish my app with these issues on my mind? Much obliged – I’d just like to be accurate while finishing the app. What is wrong with ur website for filing? I got finished doing my taxes and now it wont let me get past choosing a healthcare plan! Very angry!!!! No more turbotax for me. Reply Are the insurance premiums that I pay monthly (via payroll deduction) totally at my expense eligible for a deduction on schedule A under medical? My employer does not cover any of this cost at all. Reply Debbie, Insurance premiums you pay through a payroll deduction are eligible for deduction on Schedule A, provided they are not part of a pre-tax benefit plan. Mary Ellen Reply I qualify for a large subsidy since my income is not that high and I am 62. A recent letter to our local paper suggested that we will have to declare our ACA subsidy as income when filling out our 2014 tax forms next year. This would add 30% to 40% to our annual income and would double (at least) taxes owed. Is this true? Reply Tom, You will not have to declare your subsidy as income when you file your taxes. You will need to reconcile your actual 2014 income with the amount of projected income you reported when you signed up for your insurance. If your actual income is substantially higher than your projected income, you could have to repay part or all of the subsidy you received. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Mary Ellen Reply I make less than 18000 a year and purchased insurance through obamacare. I file an ez form and get a refund every year. Will I no longer be receiving a refund. And also, my employer wants to reimburse me for my premiums that are about 70 a month. Any reason why I shouldn’t do this? Reply NO reason what so ever. Supposedly it’s not taxable and separate form anything that would normally be on a W2 at the end of the year. Read this: http://www.zanebenefits.com/blog/bid/315671/New-Guidance-on-Tax-Free-Reimbursement-of-Individual-Health-Insurance Reply Chelle, Your employer needs to be sure that his reimbursing your premium does not qualify as an employer provided health care plan. As long as it doesn’t qualify, you can qualify for subsidies. The reimbursement will never be taxable income to you under the current tax laws. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Mary Ellen Reply Much of this discussion seems predicated on entering the government website to apply. But just yesterday there was further testimony that healthcare.gov lacks any reasonable security against hackers. So while you would be a fool to enter your personal information on this website, what other options are there to apply for health insurance on one of the exchanges (State, where the subsidies are eligible OK, and Federal, where the subsidies are … wait and see) ?? Reply My understanding is that THE ONLY WAY you can qualify for and get a subsidy or tax credit at the end of the year is if you purchase your insurance through the exchange. You can call them and deal with a person that will help you which is what I did because I wanted to eliminate the possibility of hacking my personal computer. When you do this — you need to give them your SS#. Not too thrilling but..pretty standard for insurance purposes. Since the functionality isn’t working at this time, they actually have you deal with the insurance company from that point on. In other words, you go through the market to pick your insurance company, they let you know if you are ‘entitled’ to a subsidy which you can take OR wait until the end of the year and reconcile via your 1040 to get credit. If you have any questions about your income passing muster, that would be the way to go. However, unless you go through the market place and get a ‘marketplace number’ you won’t get the subsidy at the end of the year. I just did this and I’m in NC. Once they were able to get my account set up, I called BCBS (took 2 days for them to get the information) and paid them directly. The insurance companies will bill you directly going forward as well. Short of the long, Yes the site IS vulnerable but there’s no medical information involved and….what you do give them is really out there anyway, I guess you have to have a little faith — and when I say that, I don’t mean in the government! Reply Thanks, Karen, for your detailed account. Given all that has been reported about the hack-ability of the gov’t website and gov’t information databases in general, you are a brave woman ! The “marketplace number” is an interesting new piece of info. I am wondering if TurboTax knows about this ? Actually, I found out from them that it’s really not ‘their’ reference number — it’s Blue’s Cross Blue Shield’s…maybe it’s their new id for me Also..I’m not really ‘brave’ — I was stressing out so much about this and really need insurance. I thought about taking advantage and skipping a few months to save money but..with my luck..I thought it wasn’t worth it. I thought I had it all figured out — was going to go around the market place, buy outside reconcile at year end. Once I found out that wasn’t an option…I wasn’t really left with any alternative. I may or may not be able to qualify for credit at the end of the year but if I do, I’m probably going to need it. Who couldn’t use a tax credit? In any case, once I finally got it out of the way, I felt better — it’s out of my hands and I’m going to let the chip’s fall and hope for the best. I have a lot of faith — and NOT in the government! Good morning, Karen, I wish you all the luck for this year ! Returning to the “marketplace number,” if this number is Blue Shield’s id for you, what did you get from talking with the exchange to verify that you had gone through the exchange to be eligible for the subsidy ? Or did BCBS, after you talked with them,then inquire about you with the exchange personnel ? When I called the marketplace and finally got someone who was really able to help me — he saw that my premium was high and wanted to see if he could get it down…I told him not to waste his time. Based upon the 2012 return and even last years earnings, I wouldn’t qualify. But I do expect a change in circumstance as far as income goes and I have no clue what my income will be. With that said, he just proceeded to get me entered into the marketplace under the policy I picked and told me I needed to call them back (even if I don’t want to take the subsidy at the time) when/if I have a change in circumstance. Once I was done with him and my application was complete — he gave me an application number and the customer service number to BCBS to make payment. I’m assuming the reason you need to call in the case of a change would be 1) if you are actually receiving a subsidy now and your situation improves thus you no longer qualify or 2) your situation deteriorates (which will be me) and for budgetary purposes (ha ha) they want to be aware. He also said, that in that case, I might qualify for cost sharing saving (something like that) — ie even though I may have a $3500 deductible now and a 30/70 cost share — I could get my deductible, copay and co share lowered — THAT money would not have to be paid back and would not be reflected on the 1040. However, someone is paying for that… Best wishes to for the New Year too Bruce! So it seems that one way to deal with the problem of our income exceeding the 400% of poverty level (with the resultant loss of our entire subsidy) is to file separately instead of jointly. Will the IRS ask to see our divorce papers since we have been filing jointly for years ? And does TurboTax make it easy to do a what-if analysis of this ? Reply I will be interested to see if Mary Ellen can provide you with an easy way to do this analysis within one tax return. My guess is you will have to do at least two or three separate tax returns and then compare the results TurboTax produces. Reply I’m not a turbo tax person and I don’t even want to know if you are actually going to get divorce over this but…that’s always a possibility on an audit and then…will you be able to provide them? again, I don’t really want to know. I also think Bruce was correct and that the only way you’ll be able to figure it out is to run separate returns — I’ve done that before and just name them different things. You can always open up a saved return and before changing any of the information to run another scenario, save it as something else and make changes to it so you don’t have to re-enter ALL the information again. With regard to the ‘divorce’ thing…depending upon where you live and their laws, I think some states allow you to file separately if you are legally separated — i.e if there are children involved, one could file as head of house maybe the other single? Although some states require a filed agreement, some states recognize an agreement drawn up between the parties and notarized — I believe the federal government recognizes state law…something to consider and/or look into — cheaper than divorce I would think…. I think I’d rather spend the legal fees on a discrimination case than on a divorce over this! Reply Thanks, Karen, for your input and I understand. It will be interesting to see if Mary Ellen of TurboTax has any further clarifying info. The “divorce thing” seems to be one avenue that this law left open to manage the subsidy nullification effect of making just a little too much money in a year. So we might as well understand the requirements, though I can see why a lot of people would just dismiss it out of hand. I hear you but…could you imagine if everyone got divorced over this! Then of course once everyone went through the expense, they’d just figure out a way to nail you for being single. Sort of like the benefits of having an electric car and solar panels. Now that people have gotten on board, they want to tax them as well. They want to tax you for using the sun to generate your own electricity! I suspect, they’ll figure out a way around this a lot quicker than the solar panels and electric cars! too many people impacted. also…for some reason I don’t think ‘Turbo Tax’ is going to weigh in on the filing as divorced thing…at least I wouldn’t hold my breath on that one. We’ll see. Well, Karen, Reno could be a happening place going forward ! 😉 But I just ran some numbers for my family on the kff.org subsidy calculator, and if we filed separately and applied separately for health insurance, with me taking 2/3 of our joint income and our little one, and my husband taking 1/3 of joint income, net of the subsidies we each would then get, we would for a Silver Plan pay just a little more than HALF of what we would have to pay if we apply jointly which gets us NO subsidy. And that is several thousand dollars PER YEAR to be saved by divorcing. I would agree that it would be far better to fire the idiot politicians who put this law on the books and then wipe the books clean of it. But it looks like the ACA makes divorce a serious financial consideration. As for TurboTax weighing in, as you say, we’ll see. Reply No sign that TurboTax is going to reply, and I think I am with Karen … don’t hold your breath! But the marriage penalty has been known for some time. Here is an interesting quote from Mark Duggan, a health economist at the University of Pennsylvania’s Wharton School: “The ACA, like the tax code, is complicated, and it sometimes provides a marriage subsidy and a penalty. Will it encourage some weird stuff like some people getting divorced? Yeah,” Duggan said. “That was the challenge of this thing. Where do you draw the line?” So you may be right about Reno ! I am self employed, my spouse is W-2 employee. We file married, jointly. His employer offers him insurance at about $100 a month. (I suppose it will go up now with the health care reform) His employer also offers family insurance but the rate is an additional $500 a month. So I opt to stay on my own private insurance for about the same price. Can I deduct my insurance premiums on my business return (I make a profit) or can I only deduct co-pays. Or neither? This question is for both 2013 and 2014. Reply Or- as another option can I deduct my premiums from our joint return instead of my schedule C? Which is better? Reply I just went to the obamacarefacts.com site and it says: “ObamaCare gives states and the federal government the option of charging insurance companies a 3.5% fee, on the cost of the premium, to sell insurance on the exchange. States also have the option of using grants and other forms of assistance from the federal government; however, states that refuse setting up a state run exchange will not get the subsides, therefore their constituents will purchase insurance at what will most likely be a higher rate.” With all that said, I’m from a state that did not set up their own exchange – most states did not. If I read this correctly, it is stating that the subsidies won’t be available to those states. So…am I reading it correctly and if so, is that true — are most of us just spinning our wheels worrying about this credit and/or subsidy because we won’t get it anyway? The site is definitely a liberal bias site because it more or less slams the GOP for fighting this law but…it is suppose to contain the FACTS. Again, are we all entitled to the subsidy if we meet the financial guidelines or not? Reply Hi Karen, What you have is a federal-run state marketplace, and you can still qualify for the subsidies if you purchase your insurance through your marketplace. Mary Ellen Reply OK — Thanks. So basically what you are saying is that the obamacare facts site is politically fueled – not fact fueled. As long as you enroll through the marketplace and qualify financially, you are entitled to a subsidiary regardless of what your state government opted to do. Correct? Thanks! Karen, Yes, if you purchase insurance through the marketplace and qualify financially, you can get the subsidy. It does not matter if your state runs their marketplace or the federal government runs it. Mary Ellen Is there any way to block out Bruce and Karen’s constant blogging of their mutual “chicken-little” love affair? Now, now, Craig, you wouldn’t want TurboTax to sink to Obama silencing tactics, would you ? Caveat emptor when viewing any FACTS or fact-checking website, as they have no less political bias than any other. Mary Ellen’s response to you below may or may not be true. Just taking the language of the ACA, as it was written, it provides that tax credits are available for months in which an individual is enrolled in a qualified health plan “through an Exchange established by the State under 1311” of the ACA. There is no explicit recognition of the eligibility of the premium tax credits (subsidies) for an individual acquiring insurance through a Federal exchange. Now, yesterday, a Federal judge in the liberal D.C. Circuit ruled that it surely was the intent of the law to include everyone in this eligibility whether applying to a State or Federal exchange. This ruling is now under appeal, and there are several similar legal challenges in other jurisdictions. So we will have to wait and see whether the power of certain judicial interpretation and imperial edict from the Executive Branch and its agencies trumps the the law as it was written by the Congress. The Unaffordable Uncaring Act is one big mess to be sure, but we do live in interesting times, n’est-ce pas ! Reply I know we all have our own political preferences either way…However, it ceases to amaze me how Washington (both parties) continually appear to have their heads stuck in the sand as if the rest of the country out side of that belt way is a virtual experience and not the REAL world. Politicians shouldn’t be allowed to play Russian roulette with our lives for political gain or interest like that… particularly our healthcare. We should know what we can expect and exactly what it is going to cost. The rest of us can’t operate like DC does. Thank GOD most of us don’t! If my spouse has healthcare through his employer and it can also cover me, but is too expensive, will I still get a tax credt when I purchase healthcare through the marketplace? Reply I don’t understand why that would be my fault and she also told me ro call someone to make sure they’re taking enough this year but I don’t know who to call. Reply I made arou $ 14,000 last year and when I went to file my taxes the lady said I owe money because they didn’t take out enough from my checks in the federal. I’m a single person and I really don’t understand that because how was I suppose to kno where they should be taken more money from. All I see is that they were takin largw amounts from my checks every pay day. Reply I have health insurance through my employer which is a cafeteria plan so it is not taxed and my daughter is also on my plan. The premium is taken out of my check but then my ex-husband pays me for the premium. Can he deduct that on his taxes? Reply Are new questions being taken here ? Reply Cathy, We are still monitoring and answering questions on this post. Mary Ellen Reply Thanks, Mary Ellen. I have heard that income verification for receiving a subsidy has been delayed until 2015. Is this correct ? If so, it would seem to invite fraud this year since if the IRS somehow finds that an applicant has a higher income than he/she reported, it can only re-claim the amount of the subsidy fraudulently received from his or her tax refund. And if you use TurboTax wisely as a planning tool, you should not have a refund for them to snatch. Could you look at my question about documentation requirements for filing separately above – January 16, 2014 at 4:38 pm Thanks and good weekend ! Why is it that the subsidies offered for a household (say 2 adults and 2 children) are so much greater if the adults are divorced and apply separately (each with one of the children) than if they are married and apply jointly as a family ? CathyH, there was an interesting article in the Seattle Times about a Washington state couple who are on the flip side of the marriage problem you have asked about. They were unmarried, and each had low income which meant having to enter Medicaid. Not wanting to do that, they got married, and their then joint income was enough to avoid Medicaid and get a big subsidy on their exchange for OBummercare insurance. So both the exchanging and shredding of nuptial vows is a tool to consider under the “Unaffordable Uncaring Act” ! Good morning, Craig, By “shredding of nuptial vows” I meant divorce. In other words, the way this obamidable law was written, one’s marital status can have a very significant impact on what health insurance the government will allow you to have and at what price net of any subsidies. But in your comment you stated they “had to get married”. How is this shredding? you said quote”They were unmarried, and each had low income which meant having to enter Medicaid. Not wanting to do that, they got married, and their then joint income was enough ” You are such a defeatist and right-winger. The exact problem in this country. You believe mostly hear-say and never fully research anything in depth to support your old-fashioned live in the past views. Please do not respond to me, I have to deal with unread knuckleheads like you on a daily basis. The knuckle, dear Craig, would seem to be in your head. You can read the Seattle Times piece for yourself and you can perform the same analysis using the TurboTax, Kaiser Foundation or other subsidy calculators. The results are the results. Cathy, Verifying income is part of the Premium tax credit calculation that will be part of your 2014 tax return filed in 2015. The premium tax credit can be assessed and collected regardless of the refund on your tax return. It is only the penalty for not being covered that can only be recovered from your tax refund. Please read more here https://www.healthcare.gov/how-does-the-affordable-care-act-affect-me/ Also visit http://www.TurboTaxAnswerXchange.com for more answers to your specific health care questions. Mary Ellen Reply I have been using the TurboTax subsidy calculator to explore what somebody told me was a dramatic breakpoint after hearing the following on CNBC: a family of three in New York earning $78,120 will pay $7,421 in premiums for a mid-level “silver” health plan, after taking their subsidy into account. But if they make just one extra dollar, they’ll have to fork out $12,784 for insurance — an increase of $5,363. Unless people are very careful, they could experience a huge hike in their marginal tax rates ! Reply The ACA is largely a giant case of fraud, and so it would only be poetic justice if people played the system for all it is worth this year (presuming it lasts that long.) Another aspect to consider would be that if you are married, you might consider a divorce as the combined subsidy level of you and you spouse (then ex) would be appreciably larger than the subsidy you could get as a married couple. It’s just how this “law” was written ! Reply So, the government (as represented by the politicians who passed this law in 2009) wants to inflict a big penalty on me for making more than 400% of the poverty level and for being married. And what country is this ?!!!!!!! If Im under 26 married and filing my own taxes can i get under my parents family plan through obamacare? Reply RB, Anyone under the age of 27 can be covered by their parent’s plan. Your spouse or children cannot be covered on their plan. Mary Ellen Reply If I am under 26 married and filing my own taxes can i get onto the family plan of my parents through obamacare? Reply I have been looking at the subsidies using the TurboTax subsidy calculator, and there seems to be a huge breakpoint. I heard, for example, recently on CNBC that a family of three in New York earning about $78,000 will pay $7,421 in premiums for a mid-level “silver” health plan, after taking their subsidy into account. But if they make just one extra dollar, their premiums will rise to $12,784 for insurance — an increase of $5,363 — because they will have lost any subsidy at all. Can’t imagine what the implicit marginal tax rate is around these subsidy breakpoint levels ! Reply Do my parents have to claim me on their taxes for me to remain on their healthcare? Reply Rudy, You do not have to be a dependent on your parents’ tax return to be covered by their health insurance, as long as you are under the age of 27. Mary Ellen Reply Mary Ellen, I just spoke with someone off the federal healthcare website and they said the only way my wife (who is 22) will be covered is if she files her taxes with her parents and is listed as a dependent. From what you are saying, is this not true? I’m self employed and my income varies year to year. I’m on the cusp of being eligible for a subsidy, however if I make a little LESS it says I can’t get the subsidy. So, what happens if I apply using higher income criteria, get insurance through the marketplace and accept the subsidy, but then something happens (catastrophic illness?) and my income is below the threshold for qualifying for the subsidy? Will I have to pay that money back because I am too poor? Reply Kristina, If you receive a subsidy, you will need to calculate the actual premium tax credit when you file your 2014 tax return. If you received more credit than you are entitled to, you will need to repay it (with limits). If you received less, you will receive the credit on your return. It will increase your refund, or decrease your tax due. Mary Ellen Reply You probably thought I’m at the upper levels of income. That part is perfectly understandable, but what if income goes too LOW? People under the poverty level are NOT eligible for a subsidy. Will they really be required to pay subsidies back when income is so low? Or will the standard repayment caps apply requiring a partial repayment? We are in the same style boat (self-employed with income varying year to year), though from what you say your boat may be smaller than mine. You are worried about remaining above the 133% of the Federal poverty level (FPL) threshold, and I am worried about remaining below the 400% of the FPL threshold. First to your worry, I would think that if you are close to the 133% of FPL, you would want to over-estimate your 2014 income for the simple reason that if you report a lower level, you will be shunted into Medicaid which from most reports is the poorest quality healthcare in the country. Even though the healthcare networks available through the insurance company plans on the exchanges are often not very great, still they have to be better than what you would face in Medicaid. Then in 2015, when you file your tax return and do the reconciliation, if you find your 2014 income less than the 133% FPL, then as Mary Ellen says, you could be responsible for repaying at least some of the subsidies you received depending on your numbers (for households with income less than 200% FPL, the repayment is capped at $600/$300 individual.) Unlike the penalties for not having insurance, for which the IRS has no recourse against you except if you have a tax refund due, the IRS may have some legal teeth in any clawback of excess subsidies. So put aside that much money and stay out of Medicaid ! My boat may be bigger, but I risk losing much more if my income steps over the 400% FPL line. Because then there is no cap, I would lose all of the subsidy and have to repay it all. And I would have to make a boatload more income to make up the loss of the subsidy and to pay the higher income taxes to get back to where I was after-tax at 400% FPL. Reply Thanks Cathy. Ironically, I would settle for Medicaid, but I don’t qualify for that either. My state opted out of the expansion. I can live with having to pay back just $300 of the subsidy, but how stupid is it that I will have to spend more because I earn too little. I feel for you position as well. You would think they would do a better job of phasing things out. After all, that would make calculations even more complicated and it always seems like that’s what the like – turning something simple into something complex. If you live in a state that has opted out and are not required to go on the federal exchange, does that mean you will not be taxed if you opt out and do not get health care? Reply Roberta, If your state does not have its own exchange, you should use the federal exchange for health coverage if you are not covered by a personal or employer plan, or by Medicare or Medicaid. You must be covered by some plan in order to avoid the penalty. Mary Ellen Reply As for the penalty, ignoring for the moment the implications of the court challenges to the administrative interpretation by the DHS/IRS, avoiding it will also mean managing ones withheld or estimated taxes more carefully so that one is not left with a refund position at year’s end. Only then can the IRS pick your pocket via this penalty. Otherwise, they have under the law no recourse against you. Bruce I heard on one of the political news channels that if you owe the penalty and the IRS can’t retrieve it from the tax refund, they will mail you a bill. If you don’t pay it by their “due date”, they will charge interest for every month it’s not paid. They have thought of everything to hurt you one way or the other. Good afternoon, Cindie, What you say I believe is correct. But as long as you avoid having a refund due at the end of each year, they can exercise their calculators ’til the cows come home, and the law gives them no power to collect from you. But you are also right in that the government (in particular this Executive Branch and its agencies) will do everything they can to make your life worse. Will the payments that I make to Medicare now be a paid tax on 2015 income tax rather than a medical deduction? Reply Roberta, No, Medicare premiums will remain a medical expense and not a tax. Mary Ellen Reply I only made $10,000 last year but I still want to file for my income tax. Does this mean that I still have to purchase a health insurance plan? Reply While the White House is keeping under raps the demographic composition of those who have supposedly signed up for OBummercare, the evidence from the state exchanges which have been reporting some of their data suggests that the pool of young applicants is well below the percentage targets. It remains to be seen whether the resulting death spiral will beat out the various court challenges to the Unaffordable Uncaring Act (aka ACA) before the November election. Reply It looks like we have found someone who really believes that “if you like your plan (doctor), you can keep your plan (doctor) … period” ! The Unaffordable Uncaring Act “fixes” nothing, as it essentially confuses and conflates two important elements of this world – insurance and welfare – destroying the private market for the former while attempting to boost the latter. The notion that “insurance companies can no longer drop you or jack your rates up on your individual policy for insurance that you buy through the exchanges” lacks only the word “period” at the end to punctuate this childish fantasy. No insurance company is bound by law or police/military force to remain a party to any exchange. And the insurance company bail-out provision in the Unaffordable Uncaring Act only goes so far without Congressional action (fat chance !) But even if the government could enslave the insurance companies, holding them on the gov’t plantation to do its bidding, there are all those “real crappy doctors” and hospitals which have and will opt out of OBummercare. And while we can say to ourselves that they never really cared about helping people anyway and good riddance, the pool of the “insured” will balloon and the pool of caregivers will shrink. And more and more people will find out that having health insurance is not quite the same as having access to health care. Reply IMy husband & I both work. We both have our separate insurance companies and our employers pay a portion of our Primary insurance premiums & we have the remaining portion of premium due deducted from our checks every payroll. I itemize & would like to know if I could claim the total premiums deducted from our paychecks as a Medical Expense. Reply Rosetta, If your employers reduce your taxable income through a Section 125 benefit plan, you cannot deduct the premiums you pay. Most employers utilize these plans so your taxable income is already reduced by the premium. If your employer does not have a Section 125 benefit plan, then you can claim a medical deduction for the premiums you pay. Mary Ellen Reply How do I find this information. For 2013 , I am paying after tax money for my medical coverage, which offered to me by my employer where i was laid off from. Will I be able to deduct this premiums from my tax return. Yes as long as your total medical expenses, (premiums, copays, meds. etc ) exceed 10% of your Adjusted Income for 2013 Go to this link: http://www.irs.gov/publications/p502/ar02.html Just to add to Mary Ellen’s answer, provided you can deduct the premiums, the medical deduction threshold has been increased by the Unaffordable Uncaring Act from 7.5% to 10% of AGI. So your premiums plus other medical expenses will have to be that much higher to enable you to itemize anything. But with the premiums being double and triple for many people whose insurance was canceled, that may not be a problem. Now wasn’t that nice of the Unaffordable Uncaring Act to make that so ! Reply I had planned to purchase my insurance directly from BCBS and avoid the govt market place. I’m not sure what my income for the year will be and I had PLANNED not to take a subsidy and if it turns out I’d be entitled,have it reconciled via my 1040 at the beginning of next year. HOWEVER, I just spoke to a Farm Bureau sales person that sells BCBS and he said that if you want a subsidy either directly applied to your premium as you go OR reconciled at the end of the year via a 1040 THE ONLY way you can get it is if you purchase your insurance via the govt the market place. He said BCBS policies can be purchased through the market place and if you think you might be entiltled to a subsidy, that’s they only way you will get VIA your 1040 in 2015. Is that right? i.e. People that purchase insurance outside of the market place and then wind up earning less money than expected won’t be able to have subsidies applied to their premiums for 2014 in 2015 if they didn’t go through the market place to purchase their insurance? Reply It is even more complicated than what you have been told. “Subsidies are only to be made available, and tax penalties for not signing up for health insurance are only to be assessed, in states that create their own health-care exchange.” (Wall Street Journal piece) This is what the Unaffordable Uncaring Act actually says. Now the White House, through the IRS, is trying to make this apply to all the states. But various court challenges to that sort of unconstitutional re-writing of the law will probably succeed and could collapse this whole nonsense (we hope!) But for now, it depends on which state you live in. Good luck to America ! Reply I actually live in NC and if I’m not mistaken, NC did not set up their own exchange they allowed the feds to doit for them. and again, I was told by a NC broker the only way you can get the credit is if you go through the government market place — IE they are attempting to force people into the system. However, if BCBS and the like offer the same polices outside of the market and the pricing is the same….then I think that is unfair ESPECIALLY since the government can not and will not guarantee safety in using the site! If the IRS can calculate the credit on a tax return for people in who purchased through the market place, then they can calculate for people outside the market place as well. You are correct that the lack of security and disregard for it on the part of those executing the Unaffordable Uncaring Act is disturbing and a scandal unto itself. The “subsidies” as you again rightly point out could be calculated in the same way for people wherever they live and through whatever source they buy their health insurance. But the Act (the current law) is very specific. And only those people who source their insurance through the appropriate exchange (which many states do not have) are eligible to get these “subsidies.” We can hope that the Unaffordable Uncaring Act will die a natural death this year. In the meantime, good luck to us all. Although I do think something needed to be done about health care costs, (ACTUALLY INSURANCE COSTS – Insurance companies are such a scam, you purchase for protection and if you actually need it, they drop you or jack your rates up!) I never agreed with this bill… how can you agree to terms you didn’t read???? As a result HEALTHCARE has not improved, in fact quite the opposite! What they should have done was gone to a direct payer instead of one payer — get rid of the insurance companies…let us pay the doctors etc. I don’t know, maybe that’s not the answer. For the time being, it is what it is and even if this bill dies over the coming year the damage has been done. Too many changes have been implemented over the past 4 years, doctors left, and no one is going to turn around and lower their rates. Healthcare as we knew it is gone. You can’t turn back the clock. It seems ironic to me that you complain about this: “Insurance companies are such a scam, you purchase for protection and if you actually need it, they drop you or jack your rates up!)” and yet you seem unaware that this is one of the things the ACA FIXED – insurance companies can no longer drop you or jack your rates up on your individual policy for insurance that you buy through the exchanges. Coverage is mandated issued to anyone at the group rates contracted by the govt through the exchanges. And they cannot drop you when you get sick or for a pre-existing condition. They cannot set an annual or lifetime maximum on your benefits. These was some of the major flaws in the old system that the ACA set out to correct – and did. I understand that health care and insurance is a very frustrating topic/situation, I just wish people would take a little more effort to understand what they’re complaining about. If you take what I said out of context, yes it would appear Ironic. However, I did preface that statement by saying “Although I do think something needed to be done about health care costs, (ACTUALLY INSURANCE COSTS… And you are correct, that is the one thing they did fix….Insurance companies must take you and can’t kick you off. However the actual cost of this has not yet been addressed ( we WILL see a huge jump after the 2014 elections) and in the process they actually destroyed the actual HEALTH CARE system. An insurance agent — or more to the point, an IRS agent isn’t qualified to make medical determinations… Actually the health care system was destroying itself which is why the new law was needed. I am glad it forces congress to pay for health insurance. And I am glad that I can keep my kids on my insurance until they are 26 giving them enough time to get into a stable job with good benefits after college. As for doctors quitting? That’s their problem as a great percentage of them were only doing it for the money anyways and it’s obvious that the quitters never truly cared about helping people. Then again, there are some real crappy doctors out there whom somehow lost all logic of their field and just say a bunch of garbage and prescribe a bunch of bull ’cause they know nothing. You are again right that not just something but much needs to be done about the cost of health care and health care insurance. For the former, the need for tort reform to bring down the huge cost of medical liability insurance for doctors/hospitals, and for the latter, the need to repeal the insane prohibition of selling health insurance across state lines (to name two of the more significant somethings that need to be done) have been/are in legislation passed by the House in recent years but still lie under Harry Reid’s derriere in the Senate at the command of King Hussein in the White House. Only when these political clowns are gone will it be possible to bring about some common sense reforms to address cost in this sector of the economy. One would have thought that ‘change’ would have occurred in 2012… Hopefully, now that a CLEAR majority seems unhappy maybe 2014 and 2016 will bring better results and new residents to Washington. Let’s just hope it’s not too late and in the mean time, not too many undeserving people get hurt as a result of all this. You have my sympathies here. It is more than just a shame that the country must experience this level of policy disaster before it develops a “CLEAR majority” (and I say this as an Independent deeply embarassed that so many Independents hadn’t figured this out by 2012.) Though there is little way to erase the cost to this country of what these politicians have done, it is never too late to start over and make this world a better place. So, buck up and let Ray Stevens cheer you and all: Hi, my husband and I make about $55, 000. I make about $20,000. My husband gets coverage from his employer. I and my daughter got insurance through the Obama Care and I am paying $406 per month on premiums. How can I claim this when filing taxes. My daughter and I are in college. Kindly help me understand the procedure. Reply My husband has private health insurance and his employer writes a check each month to the carrier to cover half of the premium. Will he be taxed for any of this? Does his employer have to add this to his W-2. They are not sure which is why I am checking into it. Thanks! Reply Angie, Payment of health insurance premiums is not taxable, even if it is for an individual policy. Employers are required to report the amount of health insurance premiums they pay for an individual on their W-2, in box 12, Code DD. Mary Ellen Reply Hi, My husband is self-employed and I am currently unemployed. We want to purchase health insurance through Covered CA, but wonder if it matters whether or not I submit the application as head of household, or should my husband submit it instead (to qualify for the self-employed health insurance tax deduction). Reply My husband’s employer said he is not allowed to claim any dependents, which would be myself and our son. He has always claimed us on his paycheck. Why is he being told that he cannot do this anymore? hehis employer correct? Is this a new law, as they are suggesting? Also, what ifvwe file taxes at the end of January, but do not buy insurance until February? Will we be penalized in January when we file for not having it at that time? Reply Elizabeth, I’m not sure if you are talking about being able to cover dependents and spouse on his health insurance or claim an exemption for income tax withholding. The employer can control health insurance, but the form W-4 controls the tax withholding. For the penalty, you are allowed up to three months to be without coverage. So if you are covered by February and remain covered for the remainder of the year, you will not be penalized for not being covered in January. Mary Ellen Reply I qualify for a $171 Subsidy and am responsible for $94 a month. Am I able to write the amount I’m responsible for since I’m paying it post tax when I file in 2015? Reply Michelle, If you pay out of pocket for coverage, co-pays, etc, the costs can be included in your medical expenses for a tax deduction. You will need to meet the other requirements for itemizing deductions, such as medical expenses exceeded 10% of your income (7.5% if you or your spouse are 65 or older), and enough total deductions to exceed the standard deduction for your filing status. Mary Ellen Reply Marketplace told me I would be eligible for $195 per month subsidy, and I would be paying an additional $43 per month for insurance.Will this mean I will owe money at tax time? Reply Hi Chelsea, No, it doesn’t mean you will owe. Your eligibility and amount of subsidy is based on your household income and size. The only way someone may owe is if their actual income ends up being higher than the income that the Marketplace was given when they calculated your subsidy. This will all be reconciled when you file your 2014 taxes in 2015. Thank you, Lisa Greene-Lewis Reply Under my former employer if I had 30 years of service and was at least 50 years of age, I would be offered retiree’s health insurance when I turned 55. I will be 55 in August. If I decide to take the health care coverage through my former employer will the premiums I pay be tax deductible? Reply Cathy, The premiums you pay for health coverage will be a medical deduction. Whether you will benefit from the deduction depends on if your total deductible medical expenses exceed 10% of your adjusted gross income and your total itemized deductions exceed your standard deduction. Mary Ellen Reply I’m married, but my wife and I file taxes separately. My income is pure SSI and amounts to less than $17,000 a year. However my wife is allowed to carry me on her insurance which means I’m covered. The IRS because of my earnings do not require me to file a return, but can get a $8,000 tax credit if I drop the insurance. Does this tax credit get directly paid to the Insurance Company I pick, or do I have to pay the premium myself and try to get the credit back from the government ? Reply i qualified for a large subsidy. when I spoke with someone through the Marketplace she told me that with this I wont receive any sort of return with my 2015 filing. I don’t think I like this. can someone please explain whats going on? Reply Hi Erin, If you normally receive a tax refund, and your tax situation doesn’t change, you will still receive that refund. The subsidy you qualify for can be used throughout the year to pay your insurance premiums, or, you can opt to pay the full premium and get an additional refund of the subsidy amount when your file your taxes in 2015. That is the refund the person from the Marketplace was talking about, not your usual refund. Reply still wondering about the tax hit next year? I fthe subsidies amount is added to you gross income??? Hi I’m running into a dilemma with the Affordable Healthcare application…if I understand correctly it seems like the application is based off of our 2012 returns… I have in the past (2012 included) claimed my mother as a dependent on my tax return but now no longer meet the requirements to claim her, so she won’t be filed as a dependent in the 2013 tax year. She currently doesn’t have any health coverage and won’t be eligible for any assistance if claimed as a dependent (per our 2012 return). Is there any way I can use our 2013 information to apply for AHC instead of having to refer way back to 2012 when our situation was a lot different (and disadvantageous to her receiving aids for health insurance)? I was wondering if she can just go ahead and apply for AHC assuming her new (unclaimed) status in 2013? OR must I apply for AHC for her as my dependent using our old 2012 information? (And also, is this still the case even AFTER I already filed my 2013 return?) Reply IF I FILE MY TAXES AS MARRIED FILING JOINTLY EVERY YEAR BUT GET INSURANCE SEPARATELY FROM MY SPOUSES JOB WILL I BE PENALIZED ON MY TAXES. THE JOB WONT RECOGNIZE US AS MARRIED BUT THATS HOW WE FILE OUR TAXES UNDER COMMON LAW OF THE STATE. HOW CAN I WORK THIS OUT? Reply Hi Bravo, If you are covered by an employer’s policy (even if it is your spouse’s employer), you don’t need to worry about acquiring more insurance. The insurance companies are supposed to be reporting who they cover, probably by social security number. Mary Ellen Reply Really confused on this tax credit. we normally get back 4ooo each year from our taxes. will the obamacare plan affect this? Reply The ACA will not impact your refund directly. If you are covered by a medical insurance plan through the marketplace for your state, you may qualify for a tax credit, or a subsidy to pay your premiums. If you underestimate your 2014 income, and receive a higher subsidy than you are actually entitled to, you will be required to repay some or all of the overage. If you are not covered for more than three months of the year, you will be subject to a penalty, and your refund may be reduced to pay the penalty. Reply I have heard conflicting reports. If I get 1300 per month in subsidies, lets say ,is that added to my taxable yearly income. If so,won’t I owe about 4,680.00 in taxes using 30% as a rate? Reply Gnarlyone, Subsidies will not be added to taxable income. If you underestimate your income, and claim more subsidy than is allowed for you, you will have to repay the excess, up to a limit which varies by income and filing status. Reply Can you clear up for me…exactly how will a healthcare tax credit affect our income tax refund? Reply My wife and I qualify for the healthcare premium subsidy and have obtained insurance using the subsidy thru healthcare.gov. We are eligible for Medicare in August and September 2014. What happens to the subsidy after the first one goes on Medicare. Also, when filing our 2014 tax return and the subsidy becomes a tax credit is it pro-rated for the months prior to Medicare? If so, how is it calculate? Reply My employer offers health insurance but it’s expensive and I can do better if I buy a plan outside of my employer. Question, plan from my employer is paid for before taxes, how does it work if I buy my own insurance outside of my employer. Do I pay for with after tax money? Reply If we don’t get insurance how would we go about paying the fee’s Reply Through your social security. Any money you ever make that can be documented, will be taken from your bank account and yes it is legal. They settled this issue in a federal court case in the past. Reply Hi Jim, Penalties for not having insurance will be calculated when you file your 2014 income tax return in 2015. The penalty is per person not covered, a minimum of $95 or 1% of your income if that amount is greater. Mary Ellen Reply Penalties for not signing up for OBummercare can be collected by the IRS only if you have a refund due on your tax return, in which case the IRS will reduce your refund by the amount of the penalty they calculate for you. Obviously, OBummercare makes over-paying ones taxes an even more ill-advised course. Is that $95 per year or per month? The $95 or 1% is per year, but it will be calculated on a monthly basis, or 1/12th per month. Actually, the penalty this year is not 1% of income but rather 1% of income over a base figure ($10K for singles, $20K filing jointly.) But as has been noted, the IRS can only collect this penalty from you forcefully by grabbing any refund you might be due on your return. It was noted recently: ‘ Justice Roberts in his argument stated quite plainly that there is no “penalty”. On Page 8 of Justice Roberts Opinon of the Court Cite 567 U.S. (2012) he states “The Act, however, bars the IRS from using several of its normal enforcement tools, such as criminal prosecutions and levies. 5000A(g)(2)” ‘ As for the penalty, ignoring for the moment the implications of the court challenges to the administrative interpretation by the DHS/IRS, avoiding it will also mean managing ones withheld or estimated taxes more carefully so that one is not left with a refund position at year’s end. Only then can the IRS pick your pocket via this penalty. Otherwise, they have under the law no recourse against you. Reply Jim, The penalty will be calculated on your 2014 tax return you file in 2015. Mary Ellen Mom is handleing finding insurance for my grown kids that. I do all accounting and taxes and budgets they work long hours so please send to personal labeled in mom name twila hayward and she will calk to check our quoteS she has our information. Thanks Reply I care full time for my aged mother and so am supported by her income and am her tax dependent. I applied as a “family” for insurance just for me, but I did not qualify for tax credit because I am a dependent. If my mother applies for insurance just for me, will she then be eligible for the tax credit? I find the rules confusing. Any thoughts on this situation would be appreciated. Reply John, The credits are dependent upon household income and family size. In your case, the household income is your mother’s income and the household size is two. Your mother is responsible for applying for insurance for the two of you, although she may not need insurance if she has coverage through other sources, such as employer, retirement or medicare. Mary Ellen Reply Is household income how you will file or who you can claim regardless if you claim them for 2013 or not? I want to opt-out and pay the penalty but want my wife covered by the exchange, both of us work and her job does not offer health coverage, Can and should we file separately to use her income alone for her coverage alone to maximize the tax credit for her coverage? Thanks in advance! Reply William, Your filing status does not impact household income. You must combine your income for determining the possible credits even if you file separate tax returns. You will also be responsible for insurance for any dependents on your tax return. Mary Ellen Reply If an employer offers coverage to employee and dependent children, but not the spouse, will the spouse qualify for a tax credit when buying through the exchange? Reply Kathy, Household income and family size will determine the size of any tax credits you may qualify for. Mary Ellen Reply I expect to be laid off early next year — January/February and plan to purchase Insurance. I have no idea what my income for next year will be in 2014. If I don’t have a ‘subsidy’ applied to my premiums on a monthly basis; CAN I collect them via my 2014 tax return? If they base the subsidy on 2013 or 2012 income, I wouldn’t be eligible, but I don’t expect my income to be anywhere near that high on 2014. I’d prefer to pay the premium, not owe anyone any money and get any credit due at the end. IS THAT possible or doesn’t anyone know? I’m sure I won’t be the only one that goes from high earner to low or zero as a result of layoff. Reply Karen- I had the same question and yahoo finance’s section directed me to healthcare.gov where deep in they explained essentially yes to your question. When one files their 2014 tax return you will be reconciling any advance credits you may have taken throughout the year (taking zero as you go is an option) against what your actual 2014 magi when filing dictates you qualifiy for. When signing up for a plan we’ll be estimating our upcoming 2014 magi to get estimated potential credit. The site says we will be able to choose to receive the estimated monthly credit in full each month or a portion of it in case we’re not confident of our estimated 2014 magi and do not want to “owe back” any money when reconcile at tax filing time. Hope that helps, I had same unease at projecting modified adjusted gross income for the coming year. Disclaimer: I’m not a tax professional but this is what I found on the website in deep. Unfortunately, I’m traveling and not good at pasting in links etc. on tiny screen so use my words at own discretion. Reply Thank you! After further consideration I more or less realized they are actually giving us an ADVANCE on anything we might be getting back as a result of having to pay better than 10% of our income toward medical. Think I’ll wait and get the refund… My husband is self-employed and I won’t have a job until August 2014. We won’t have insurance until then too. If we chose to not have insurance until Aug 2014, will we still be penalized? Reply Tiffany, You can be penalized for the months of April, May, June and July. You are not required to have insurance until April 1. Mary Ellen Reply As for the penalty, ignoring for the moment the implications of the court challenges to the administrative interpretation by the DHS/IRS, avoiding it will also mean managing ones withheld or estimated taxes more carefully so that one is not left with a refund position at year’s end. Only then can the IRS pick your pocket via this penalty. Otherwise, they have under the law no recourse against you. Reply If I have itemized on my tax return in the past and have claimed medical premiums with a private insurance company, will that remain the same for deduction on my taxes? Reply Linda, Medical insurance premiums you pay will continue to be deductible. If you purchase insurance through the exchange and receive a subsidy, you will need to reduce your deduction by the amount of the subsidy. Mary Ellen Reply I am retired and am on social security and medicare. My wife, who is retired but not yet eligible for medicare, had her own health insurance with anthem blue cross but her policy is no longer available because of Obamacare. She qualifies for a tax credit subsidy but we have a very low tax burden. How can we take advantage of the tax credit if we pay little or no tax? Reply Hi, You can take the tax credit to help you pay for your insurance in 2014, before you file your 2014 taxes in 2015. The tax credit can be applied to your monthly premiums. Thank you, Lisa Greene-Lewis Reply Yes but, CAN you take the tax credit ON the 2014 tax return rather than take it as a subsidy? If you do not apply a subsidy that you may be entitled to during the plan year CAN you get it via your tax refund at the end of the year? Again, if you don’t know what your annual income will be…and I know mine will be different in 2014 than it was in 2012 and 2013 — I assume far less. OR don’t you know? Hi, Yes, you can opt not to apply any subsidy and get it as a credit on your 2014 tax return. It will be a refundable credit, like a tax payment, even if you do not have a tax liability. Mary Ellen Daddyomommyo: I have the same question as you, How can we take advantage of the tax credit if we pay no taxes when we file? Or more specifically, do we have to pay back the credit if we used it to decrease our monthly insurance premiums, because there are no taxes owed to subtract it from on our tax return??? And I don’t see any other letter answering our question. Please can TurboTaxLisa or some other knowledgable person speak to this?? Reply let me know about this. I have the same situation Reply If you have health insurance you are all set. You don’t have to do anything. I just got notice my policy is being cancelled and I found out over 4 million others are getting the same notice. Thanks for the accurate info Lisa. Reply Hi Bernard, I’m sorry about your insurance. Unfortunately under the Affordable Care Act, insurance policies that did not meet the “minimum essential requirements” required by the law are being canceled. Read more information about what is meant by minimum essential coverage here https://www.healthcare.gov/what-if-someone-doesnt-have-health-coverage-in-2014/ Thank you, Lisa Greene-Lewis Reply Would it be operationally accurate to say some people’s income taxes can go up 100% as a result of the ACA? For purposes of my question, income tax is defined as the amount the ACA could cost someone out of their income. Thanks! Reply Probably not. Penalty for no insurance is $95. Reply The penalty is $95 OR 1% of your income above the minimum tax threshold, whichever is higher. The penalty could be many hundreds of dollars (even thousands, if you’re a highly compensated individual). Defined in this way, sure. Premiums with higher deductibles for many people are double to triple what they were paying. As for the penalty, ignoring for the moment the implications of the court challenges to the administrative interpretation by the DHS/IRS, avoiding it will also mean managing ones withheld or estimated taxes more carefully so that one is not left with a refund position at year’s end. Only then can the IRS pick your pocket via this penalty. Otherwise, they have under the law no recourse against you. Reply “If you like your current plan…………………..” UPDATE your information, or you’ll be accused of working for the Chief Executive’s propaganda branch. Reply Veterans already signed up for VA Healthcare do not have to sign up for Obama Care….VA meets the minimum requirements. Reply Ha Ha, Veteran, got letter from VA…I don’t have to sign up for the crappy Obamacare…I already have crappy Government medical coverage. Reply I’m glad there;s some intelligence in this debate, unfortunately its not in this article. You will be taxed on your health coverage, just not yet. So saying you won’t be taxed is a lie by omission. Reply Hello, Nice blog. Your article gives such an useful information about health insurance.Thanks for sharing. Reply AMEN! Finally some intelligence. Some of these people are just stupid sheep. Reply Ok so after determining that my employer’s coverage isn’t “affordable” I can now purchase from the marketplace or thru an insurance co., I already know I don’t qualify for assistance for that so my question is, if I don’t itemize will there be something to fill out for the premiums I directly because right now premiums come out of my paycheck and are pretaxed lowering my taxable income. Please advise. Reply Hi Sonia, Yes, if you itemize your tax deductions, you can deduct medical expenses including premiums paid over 10% of your AGI (7.5% if over 65). So for example, if you made $50,000, you can deduct your medical expenses over $5,000 ($50,000 x 10%). Thank you, Lisa Greene-Lewis Reply 1099 misc form is filled by the company to show the miscellaneous incomes like renting, compensation, awards, royalties and many others of the companies. Reply About all this helpful turbotax blog has done for me, is convince me that I probably ought to fine another way to do my taxes. Reply “fine” was probably a Freudian slip. Of course, I meant find. Reply Good luck with that. I’m beginning to think the same way. thanks you Reply Maybe some of you will start seeing the light. OBAMA LIED TO US!!! You will not be able to keep your current insurance because THE EGOMANIC HAS DECIDED HE KNOWS WHAT IS BEST FOR YOU!! Your rates are going up as well as your deductables. The only ones making out on this program are all the freeloaders out there. Reply It’s not the president’s fault that doctors and insurance companies are idiots. All those people care about is filling their pockets, so of course they want to screw people over out of greed. Reply I kept my insurance, Blue cross anthem! My rates went down as did my dedutibles. So I guess you are wrong, again! That’s why we’re required to buy insurance company policies?! It’s like car insurance. People have been expected to buy it for decades. It has a purpose, to save you a lot of money in Dr. bills and etc.. I really don’t understand what’s so hard to comprehend. I guess you people who are against having health insurance must love being in debt. Amen!!!!! Reply very well said Reply WOW. thanks for helping understand this issue. i was thinking it would effect my 2013 taxes!!!! Reply You can go to healthcare.gov an dget information on plans, etc. You just can’t enroll because the website is still jacked up but it does have information available. Reply I find this blog very helpful, but I do wish the admin would filter out all the political posturing. This is not the place for that. Go rant elsewhere, leave this blog for those seeking information about the current tax laws, rather than those who want to continue debating their validity. Reply My husband and I are both self employed with highly variable income and 3 kids. sometimes we may qualify for subsidies, while other times we may not. If we do not ask for a subsidy to purchase the insurance, and earnings end up falling below the threshold, can we take a credit for that difference when filing our tax returns? Reply Tamar, When you purchase insurance from the exchange, you will be given the option on how much of the subsidy to apply. If you don’t apply any of the subsidy, it will become a refundable credit on your 2014 tax return. Mary Ellen Reply If i deny insurance from my work, will I still be penalized, or taxed at the end of the year? I will be getting insurance else where. Reply If you are getting insurance elsewhere, then you answered your own question, “no.” Reply My oldest son needs insurance. He can’t even get on the website. It keeps crashing. So he will be penalized ? Even though its not his fault? And he can’t even afford groceries. How us he suppose to pay for insurance? Reply Kim, Insurance is not required until April 1. If his income is low, he will qualify for subsidies to pay for his insurance, and possibly his medical expenses. Mary Ellen Reply We buy our insurance through my wife’s employer because it is cheaper than my employers insurance. My boss has to pay $800 a year per person fine for every employee that does not buy his insurance. He is going to take that out of my check. And it goes to $1600 per year in 2015, and higher every year. Can I deduct this from my taxes or am I just screwed by Obamacare? Reply You’re not screwed by ObamaCare, you are just being screwed by your greedy selfish boss. Reply Is there any other kind? How much are you saving each year by being under your wife’s employer’s insurance? Is the savings more than what your boss will charge you? If not, then might be a good idea to stay on your employer’s insurance… Reply Is that LEGAL? I don’t think so but nothing would surprise me these days. However, I can’t believe there is a deduction on your paycheck for employer tax penalty… I thought the idea behind having an EMPLOYER pay the penalty was to convince him to provide insurance. Many employers are opting to pay the penalty because it is cheaper for THEM than it would be to provide insurance. I can’t believe they can legally force you to pay THEIR penalty via your wages. Both of you will still be responsible for SS and medicare taxes on that $800 and you will still be paying both state and federal income tax on that money as well. On the other hand I do think they could DECREASE your salary by $800 per year to offset his cost. This would make more sense for BOTH employer and employee. In that case, you would both be saving on SS and medicare taxes and you wouldn’t be paying the federal and state taxes either. Reply Companies and businesses do not care who they screw over. All they care about is their bankroll while all of us hard working citizens struggle to succeed in this chaotic world. I hear you on that one but..after further thought, I don’t understand why this guy would be penalized anyway…he’s opting out HAS INSURANCE. Why would there be a penalty? If someone has insurance elsewhere why would an employer be penalized? I’m not going to worry about this stuff — just going to get my insurance without a subsidy, hope to write it off on my taxes and PRAY, PRAY, PRAY for Divine intervention! I’ve given up on Congressional intervention! The employer will not be fined if the employee “opts out” of his insurance plan. The only way the employer gets “fined” is if the employee files for the subsidy which is not the case here (the wife’s insurance is less expensive, but not is not through an exchange, and is not eligible for the subsidy. This gentleman needs to contact his State Insurance commissioner, the State Wage and Hour Board and a good attorney! I make about $50,000 a year for a family of 5. I have insurance through my work for myself currently, however to get if for my family (even the cheapest plan) is about $1,000 a month, or $12,000 a year. That’s 24% of my income. Can I still apply for “Obamacare” even though I’m currently on my school’s insurance since I’m above the 9.5% rule? If so that means I’ve got 2 insurances at the same time. Is that a problem? Is there any way to cancel my insurance with the school I work at. The insurance policies are for 1 year but I don’t know with the new tax reform if that allows you to cancel with your current employer. Thanks. Reply My current insurance goes through September of 2014. Reply Me and my husband can’t afford the insurance he gets through work. If he drops the insurance(which he is able in december)can we look into the health insurance marketplace and still get the subsidy or i have to absolutely go with my husband’s one. If we don’t have any insurance how much our penalty will be if our income is 37,000 a year? Reply All of you people complaining need to actually read how this is going to help people. Why was it ok when bush wanted to do the same thing and the dems voted it down. Do some research before you go bitching. and some of you need to learn to spell Reply AMEN! Finally some intelligence. Some of these people are just stupid sheep. Reply “and some of you need to learn to spell” … such as failing to capitalize the B in Bush …. Reply What does it take to qualify for the tax credit? I am a 1099 employee and have to purchase my own insurance. Reply Will Texas be expanding it’s medicaid program? Reply Lisa not as long as we have Perry in office or any Rep or Tea Party for that matter..Most of us are screwed.. Reply I didn’t understand the tax credit my yearly income says I can put $248 monthly tax credit toward my health insurance to lower my monthly payment for insurance ..but I have never got that much back on fed tax refund. That’s about $3000.00. Does that mean we will get a larger tax return to help pay for health insurance?? Reply The way I understand it that will be applied to your ins monthly and you will only be out the difference every month Reply Seriously? You think that the government will make monthly contributions to your insurer? Hey Turbo Tax, how much did Obama pay you to make this awfully misleading video? Misleading in the sense that it puts a positive spin on obamacare. Reply Right you go mike Reply Thanks Mike for calling out for responsibility and integrity…woefully lacking to all of America’s peril and demise…The media and all Obama’s “pups” have cost us our very freedom and yet they continue right on worshipping at his pagan altar. NO TurboTaxLisa NobamaDon’tCare. We pay more and get less and you go right on marching in lockstep with the socialit deceiver-in-chief. Reply Oh my gods! People, our freedoms were at risk for decades. Stop putting the blame on the current president. We’d still be in a spiraling mess even if Romney was in charge. Sheep, are you suggesting that we were right to be upset and dissatisfied with previous people messing us over but we should not be complaining when this Obama idiot piles on and starts shoving garbage down our throat too? Garbage is garbage, no matter who the originator. I’m just suggesting that you people need to get your heads screwed on right. Thank you Turbo Tax for putting out straight talk on the Health Care law. The people complaining are the ones the rest of us are paying for now since they do not have health insurance and then they go to the Emergency Room and don’t pay. We / I end up paying for them. They want something for nothing. The whole concept of auto or health insurance is that everyone puts in their share and most of the time they don’t need it but ….. when we do, the whole group helps pay. Grow up and pay your way. Reply Who r u kidding? Have u looked at the exemption qualifications? Those people still won’t end up having to pay! One of the exemptions even says you may be exempt if you have a disconnect notice lol Reply Really? I must have missed that one. Can you post a link or cite a source? Thanks. TurboTaxShanneModerator 3 days ago I have also found some information for you about “exemption from the fee”. You can click on the following link and read all of the rules for exemptions. https://www.healthcare.gov/exemptions/ Reply I had to go read the link to believe it. I blew coffee out my nose. Who wrote this stuff ?? I’ll have to say I tend to agree with you. My 24 yr old daughter and her husband do have coverage through his work. It’s very expensive and they are young and just starting out, but they have a baby and NEED insurance so they are being responsible and he looked until he found a job that offered insurance. It is a huge chunk out of his paycheck. They don’t get to go out to eat much, or buy clothes or nice vehicles or drink beer or have nice cell phones. They, instead, have insurance. That is what responsible grownups do. He chose the job that offered it. Because they have insurance, they are gonna be broke for a while. But they are not asking anyone else to pay their way!!! That’s the way they were raised!! AMEN! More proof there is some intelligence left in this country. some of us don’t make enough ,when I could afford coverage I was happy to get it.now I am not able to pay for it now,it will pull from food or rent,or gas.so which would you tell me to go with out.i have looked at my options with the new health care,there are none I can afford. Reply Geez, I don’t see how people can’t grasp the concept that having insurance is A LOT CHEAPER than paying a fat Dr. and/or E.R. bill. That is a pretty ignorant comment Mr. Jim H. Reply Not really. Actually the real truth of you deadbeats. Probably slacked through school too. Now time to pay the piper! Ignorant? It’s the freaking truth. What’s ignorant is people enjoying their free ride while the rest of us have to cover your rear ends as we try to cover our own. AMEN’!!! The dead beats still will not be paying, everybody that works will be paying for them. Jim, You said it!! Good job Reply Jim, your comment is really uncalled for and untruthful to a lot! I work very hard for what little I have and have no insurance offered at where I work! I have never been to an emergency room for care in my life! I do not, like a lot of others have health insurance because it takes everything I make to pay bills and cannot afford it! How nice for you that you can afford insurance! You need to know what you are talking about before you condemn other hard working people! If you think this health care law is for the best for everyone, you need to check your facts! Reply Sounds like you better pull a 2nd job or find another job that is better and offers good benefits. It’s not that damn hard. As for not going to the ER, there’s always a first time for everything and when you get that huge ass bill, you’ll be wishing you had insurance. Allergic to sleep: there are many parts to the equation for people – work-family balance is one that is very important to many people. Paying the necessary bills for existance comes first, however, if the parent is not home because of always working, who then raises the children with ethics, personal integrity, & how to be a generally decent person? HMMM? I suppose your children are modelf of society? Yeah, I pay my bills for existence first and so forth. Life might be tough, but it isn’t that complicated. People need to stop making excuses and get their life straightened out. As for my children, I’m raising them to not be like their mother (whom is living off the government, otherwise known as the hard working tax payers money) and people like you whiners whom can’t seem to grasp logic, common sense, and intelligence. Sorry – dyslexia – My name should read — Dislikewolfinsheepclothing Allergic to Sheep, you are a self righteous troll! You have done nothing but judge everyone down the line here. You need to get another job ( been there, done that too long!) maybe you wouldn’t have so much time judging other people! You have to have intelligence to give it! Try getting some first! Your definition of a “judgemental troll” appears to be way off. Don’t get all butt-hurt over the things you can’t comprehend. Your comment appears to be more out of judgment and trolling than mine. I was basically having a conversation over what is sadly the truth and you go all “boo hoo hoo.” It is true that some of my comments were in response to the comments by trolling sheep who don’t really have anything worth saying. They just post their badmouthing on things they have no intelligence or comprehension on. if you ever get laid off or lose your job lets see how you think then jim.becouse I felt the same way you do until it happened to me.so hope you never lose your job jim Reply I work and make about 30,000 a year, my husband is to sick to work anymore but has been denied SS or SSI I am insured at work but he has no income and I can not afford to cover him. He has 3 terminal illness. am I going to be penalized for his not having insurance even though he has no income? he smokes so his coverage will be through the roof. Reply so who pays for his cigarettes??? Reply Exactly. The person smoking the cigs has obviously signed his death warrant by wanting to continue smoking and sadly she is allowing it. It’s kinda like slow suicide. But stop the cigs and she might be able to afford insurance. Do u have a job or just troll all day allergic to sheep? I have a full time job with benefits. A little over $30k/yr and no debt besides the usual bills. I am thankful for my Pension, 401K, Health Insurance, Vision, Dental, and a wife whom actually works (minimum wage) and helps keep our income straight. I have 2 daughters and 2 cars (which was a $9k loan and was paid off in 9 months). I have $425 rent that includes electric, water, trash, and gas. After paying all my bills (including credit card, car maintenance/insurance, and buying groceries) I still have over $600 in the bank. As for “trolling?” Nah, try instead, “..providing logic, common sense, truth, and intelligence…” Get some! I too say, stop the cigs and use that money to pay for insurance. You are correct, I am not a smoker, but I lost relatives because of cancer to the lungs, including my Mom! I too pay my way and am tired of the high cost of medical and auto insurance to make up for those who do not have it. Reply Thank you for making the video it very understanding. Reply All complaining is going to get any of you is a promotion. I don’t fully understand most anything that goes on when it comes to healthcare furthermore I don’t think that our law makers and insurance companies know either. I don’t know why I started reading all these comments but it helps me come to the realization that everyone is complaining of first world problems. Sorry that you can vent your frustrations through a smart phone or computer. Live your life pay your taxes and shut up about it. I just realized I am a hypocrite and am venting my frustrations through a smart phone. Just know that most Americans are suffering just like me with quadruple the debt of the amount that I have in my checking account premium cable, air conditioning and a running vehicle. Oh how I suffer. Reply Well said, and this is the last comment I will read. Reply Thanks Turbo Tax Lisa and several others who mentioned the subsidies for those who complain they “Can’t afford insurance”. BTW it is still private insurance companies, with the needy taken care of with ongoing programs. We do not have “Universal Health Care” available in so many other developed countries! Reply TurboTaxLisa — Please tell me your employer does not endorse that video. There are less argumentative ways to get more and more accurate information to customers, if you are sincerely interested. Call me. Reply Re video: Host wrong. She made 4 misstatements followed with a valid question which makes it look like DWS endorses all the statements when she responds to the one question. Didn’t you see that? : Panels will tell you what insurance you can buy. Not. : The “exchanges” are to sell co-op insurance (implicitly run by the govt). Not. : employers will drop employee which forces employees to the exchanges. Not. : Please research before broadcasting misinformation. We need a coherent America. Reply A previous comment has popped a question in my mind. I have custody of my kids and their mom (my ex-wife of course) is on “disability” while getting all that free government support from SS, foodstamps, and state insurance (TennCare). From what the law has been is that I am the only one who can insure my kids since I have custody while she is on all these state funds that are not costing her a penny while she’s avoiding to pay taxes and she even refuses to pay her responsibility to their medical bills. Does the new law require her to add our kids to her insurance and will they accept? Reply I too have been on disability for the past 6 years, but get no extra subsidies for living or food. I worked all my life and am 65 years old. I paid my share of taxes, so don’t lump all of those on Disability into one category. I can barely get by each month on the little bit I get from SS and my 401K. We need to repeal Obama care and get reasonable help for insurance for those in the lower income bracket. I wish I could work, but totally not possible due to severe back problems and Parkinson’s. If your wife truly has money to help with the medical for your children, then she should be made to do so. Why do the lower income have to pay so much when the people in the White House get paid whether they work or not and get free medical??? Reply Yes, but there are people who fake the whole disability thing just to get a free ride and easy money. And ObamaCare is also making it where all those government bastards have to sign up as well as the rest of the country. Get it repealed and congress gets off easy. So I vote no on the repeal. Hi TT Lisa How about folks like us who have moved out of the USA now? Although we do visit our kids once a year or so. We are not forced to buy this are we? Thank You & I still use your product to file Reply Socialized Medicine is the key stone of socialism. Need I say more? Reply My daughter is 23, does not live with me, and files her own tax return. Currently does not have insurance,may qualify for Medicaid based on her income, only works part time, does not know if she qualifies for insurance from her employer. Would I be forced to add her to my plan thru my employer, which I cannot afford? If she does not get insurance, who pays the penalty, her or me? She is no longer a dependent on my tax return. Reply I have health insurance, but with the obmadontcare health plan I will no longer be be willing to pay the doubled premium. The tax penalty will be less than the insurance premium. I have carried high deductible health insurance in case of severe illness. Now that the insurance companies cover preexisting conditions, why not just wait and get coverage if I get sick. Reply I welcome insurance reform I don’t want free insurance just affordable coverage,my husband and I have been tryin to get health insurance for me since 1999 when I was dropped because of having mental health problem now I can’t get health insurance .every time I real of affordable insurance on television r any where else I check its not what they say .they tell me just for myself is 700.00 a month we can’t afford it. I don’t go to the doctor because of the expense. My kids help the best they can but they have there families and my medical and prescription are high if you can tell me a better solution to this I would be interesting in hearing it Reply I have health insurance through work, but it’s very expensive. I was told there is some tax credit I would be eligible for if the premiums are more than 9%. My insurance premium is about 15% of my gross income. Is this true? Reply My Question is this. I am a Disabled Vet and my healthcare is covered my the VA, so I’m good. My Wife has coverage through Tricare as she is appointed as my Caregiver through the VA and paid as such. I am not 100% yet so my children arent eligible to be covered under e through Tricare. I am still searching to check vor a company that will cover only my 5 & 7yo without having to pay extra to cover my wife as well. My income is not taxable nor is my wife’s. How does that work than with my children since CHIPS says we have to claim it to them to see if my girls are eligable? Reply No matter how you slice it your screwed Reply My children are members of a tribe. They have their own healthcare system. Are tribal members exempt from this law because they they have tribal health for one, and their status as a sovereign nation as two? I don’t think technically it is insurance, but they cover all their members health care. Reply Adam, Tribal members are excluded from the insurance requirement. Mary Ellen Reply Thank you once again demacrats for taking from the people doing something with their lives to help the ones who aren’t! Good job smh! Reply OBummercare is simply part of the large increase in Middle Class taxes that this White House has long been seeking. The key to survival for the Middle Class until it can be repealed was written about recently. Here is the link and summary of that article: Daniel Mitchell, whose expertise in tax matters usually has him writing about tax reform, summarizes this interesting piece as follows quoting from the article: The article nonchalantly explains that people may want to reduce their income so they can get more goodies from the government. “People whose 2014 income will be a little too high to get subsidized health insurance from Covered California next year should start thinking now about ways to lower it to increase their odds of getting the valuable tax subsidy. “If they can adjust (their income), they should,” says Karen Pollitz, a senior fellow with the Kaiser Family Foundation. “It’s not cheating, it’s allowed.” Under the Affordable Care Act, if your 2014 income is between 138 and 400 percent of poverty level for your household size, you can purchase health insurance on a state-run exchange (such as Covered California) and receive a federal tax subsidy to offset all or part of your premium. …getting below the 400 percent poverty limit could save many thousands of dollars per year. ” You may be thinking that this is just a theoretical problem, but the article cites a very real example. “To get a subsidy, the couple’s modified adjusted gross income for 2014 income would need to fall below $62,040, which is 400 percent of poverty for a family of two. …Proctor estimates that her 2014 household income will be $64,000, about $2,000 over the limit. If she and her husband could reduce their income to $62,000, they could get a tax subsidy of $1,207 per month to offset the purchase of health care on Covered California. That would reduce the price of a Kaiser Permanente bronze-level plan, similar to the replacement policy she was quoted, to $94 per month from $1,302 per month. Instead of paying more than $15,000 per year, the couple would pay about $1,100.” To put it in even simpler terms, this couple has figured out that they can get almost $14,000 of other people’s money by reducing how much they earn by just $2,000. That, in a nutshell, is the perfect illustration of the welfare state. It tells people that they can get more by producing less. And the system is based on the theory that there will always be some suckers who work hard to provide the subsidies. Reply Hmmm, sounds kind of like what rich people do with their incomes to avoid taxes? The rich? Yeah, which is what this law is supposed to be dealing with as well and why congress members are against it. They don’t want to pay for insurance if we are giving them a free ride. So now that they have to pay, they are pissed and so are the other free riders living off our hard earned money that we pay towards taxes to cover them. Get out of fantasy land and into reality. Wow!, I have read some of the comments. I am insured through my employer. So I don’t have to worry about signing up. But for those of you who are healthy and young and do not have insurance-and feel that you do not need it. Just the one time you are faced with a major illness the rest of us pay dearly. For those you cannot afford insurance and I work with a number who either work to pay for coverage through employers—-or pay a lot for family coverage. For the individual insurance doesn’t seem to be high, but for those with families and dependents. Hopefully the credits and subsidy given will take care of it. Those of you who are complaining that it is destroying the country, it is socialist— Let me ask you this question—–Have you ever been unemployed for a long period of time—-Have you ever had to struggle in life because of those who continue to take advance of those who apply for basic necessities in life? The financial crisis was caused by people and companies looking to get rich off the backs of the working class people. Oh by the way Obamacare would be paid for by the Medical device tax—-but certain politicians don’t wont it. Why because it take money out to the pockets of those who invent, make, buy and sell such equipment. Again, lower and middle class do not get much of a tax break –but the rich and famous. Let all of the complainers get a life and think about others more than yourself–do your research and open your minds. The affordable health care act is for those who do not have insurance and need assistance to do so. I can understand that. Do we have to pay for it—-Well think about those who get turned away and struggle just to find a job to put food on the table and a roof over there heads. I have a college degree from Uof M but my career has been tanked by the financial greed of a few. I sympathize with those who have to struggle to survive everyday. Most of us are not born with reserves of money and wealthy contacts. Time and Chance happens to us all. I hope all of you do not fall on hard times. Just maybe you might show a little sympathy for the not so greedy in life. Good job on explaining the health care Law Turbo Tax. You have done your part. Have a Good Day!!!! Reply Sure, lets reward those that sit around and do nothing with their lives. Sounds great. Think I’ll sit around and let others reward me too. What a stupid comment Brittani. Reply This is going to screw up my credit because I will either end up owing a tax penalty getting evicted or getting my car reposed and I make to much to qualify for Medicare or what ever people that live off the rest of is get! If they would have us a heads up on this I prob wouldn’t have bought such an expensive car or apt because I could have budgeted in insurance this is like the seat belt law… Who I am I hurting by not having insurance I am young heAlthy and no kids wtf! Reply Then don’t wear your seat belt and don’t pay for health insurance. When you get into a car accident you will be severely injured, and have no insurance to cover you!! Reply We’ll since I have full coverage I will still have insurance to cover my medical and the last time I wrecked if I would have worn my seat belt it would have sliced my head off. Not much incentive Ashley, thats a terrible way to look at this. Brittani has a legitimate beef and you are an idiot Well you can live in fantasy land all you want, but that’s the ugly truth. Not really because as I said that is what my car insurance is for it covers up to 50,000 in medical expenses Because the “Health Insurance Marketplace” is so screwed up, for lack of a better expression, and likely to remain so for some time, all that we can do is to investigate what information about plans and pricing there is on websites such as https://www.ehealthinsurance.com/ehi/resources/subsidy-calculator#subsidyEstimator http://kff.org/interactive/subsidy-calculator/ From my family data input, the pricing/subsidies which these two websites indicate match fairly closely, in contrast to the current subsidy calculator on the TurboTax website which indicates much larger subsidies. You should also read the following article to see how some, if not many, people will be managing this Brave New World. http://www.sfgate.com/business/networth/article/Lower-2014-income-can-net-huge-health-care-subsidy-4891087.php Reply This law was passed in 2010. You knew that, right? Reply Yes. But it was passed without anyone in Congress reading it. Remember, they had to pass it to find out what was in it. Well, those idiot politicians are still finding out. Brittani, sadly you will not be young and healthy forever. I was young and healthy once, now the only way I can get health insurance to cover a chronic medical condition is through Obamacare. I pray that you, at least, will never have to experience the fear and financial hardship of having to pay medical bills without insurance. Reply Quit complaining! I can’t work for medical reasons. I worked my whole life and now am on Disability. You try to live on that! You sound like one of those greedy people who want everything, buy everything and never put any money away for a rainy day. Some day you will wish you had. My generation has paid our share into the government. Maybe you need to stop living beyond your income, and have a little more compassion for those less fortunate! Reply @Fed Up: Amen! No car insurance covers $50k of medical expenses for yourself or your passengers unless it is Uninsured or Underinsured Bodily injury coverage which is only comes into play if the other vehicle is at fault and they do not have insurance or high enough limits to pay for your or your passengers bodily injury. With healthcare costs, this amount can easily be exhausted. I am an insurance agent and it sounds like you need to speak to yours to clarify what your coverages truly provide. You might be thinking of your bodily injury liability limits but that does not provide coverage for yourself. Reply I do agree with you though Brittani that we should not be forced to buy health insurance. Besides being forced into it, the deductibles are not affordable. We are not being provided healthcare but health insurance which still comes with many unjusts. I also am in the same boat as you with the plans not being affordable and I live a very meager lifestyle but I also have no debt or loans of any kind. So what you are saying is that you still want a free ride. People like you are the reason the country is in turmoil while the rest of us hard workers pay taxes that cover you people’s free rides. My understanding is that the fine/penalty will only be deducted from my refund and will not be added to any tax already owed. Thus, if I have an amount due exclusive of any fine or penalty for not having health insurance, I will not have to pay the fine or penalty correct? Reply My husband will be on Medicare in 2014, I will not and I choose to have no insurance. Will my penalty be based on my income or on family income? We will be filing jointly. Reply Vivian, The penalty will be based on the household income. Mary Ellen Reply All you people are complaining about this obamacare and the country is turning into a socialist country, where the heck were all of you during the election? I voted for Romney because he promised to overturn it. It your own faults for voting for owebama, In 2016 do the right thing. Reply Hopefully the rest of the complainers like myself didn’t vote Obama because u r right if u voted Obama shut up u helped do this to us! Reply The irony is that I was in the hospital at the time and therefore not able to vote. I called to have the county send someone over for patients to vote but they would not so several votes nationwide are missed by hospital patients. I would not have voted for Obama given the chance to vote at all. I do believe the electoral vote needs to go away. It deters many from voting. EVERY vote should count one by one. And Romney would not have made a bit of a difference. I voted for Romney also. Can’t seem to find anyone who will admit they voted for Obama. He sure got a lot of votes for no one to have voted for him. I think they are to ashamed to admit they were that stupid. Reply It’s not that they are ashamed its because they know they wont be spending the rest of their life in a concentration camp. So once you are there then you wont have to worry about Obamacare cause you wont be alive long enough to enjoy it..lol. Once the constitution gets changed to allow for a 3rd term then everyone who didnt vote for him will feel the pressure. New World Order. NWO has been in the planning stages for decades. it’s a lie. This is very true. People played into the President’s ploy. I voted for Mitt too, as he is smart business man, who knew this Obama care would obpress the country. We have yet to have a balanced budget. This will take intellegant honest successful who know what it takes to run a business like Mitt Romney who can be trusted to do what is right to create new business, get America back on it’s feet, it won’t happen over night and raising taxes is not the answer. The ways and means committee is a high position that has been played with congressmen who are placed on it to only fail America. Get Rid of the IRS, they have been given to much power to take Americans homes and ruien Americans lives because of penalties and interest an over complicated ever changing tax laws. This is wrong, it’s their Idea of raising taxes on Americans is the big answer to balance a budget, it never has worked. I think anyone who is in the highly position position that effects our nation as a whole should have their motives checked, and do they have the qualifications or just enjoy being in a position of power. Americans deserve better than we have gotten out of elected government. Before anything is done, jobs should have been first before Obama care, getting America back on its feet first. Why wait on this,No one is going to take Obama care serious. We all deserve lower health care costs with no stipulations or punishment attached to it. I’m tired of government stupid decsisions. WE the people don’t need government hurting us any longer. I say if we continue to allow a President to spit on the constitution that needs to go back in place where it was in the beginning, as these men were honest and wanted the best for America. Reply I’m with you “Your Fault” Reply “your fault” you hit it right on the nose. So many people who don’t pay attention to what’s going on until they realize they are living in socialism. History is repeating itself! How do you like the change now? Too late! These are scary times and everyone needs to pay attention to what’s happening to our country. Reply What about if we have approved coverage we gain through our employer? Our rates have increased and so has my tax bracket this year- somehow my bring home pay is less than before my raise-since increase in premiums. Do I not receive a tax credit? Only those who purchase through the marketplace will be eligible? We are paying more for the other to use market place I would think we would be eligible for this credit also. I understand TurboTax doesn’t make the laws or impact the laws. Just want to know how this tax credit is effecting me Reply Sarah, Only those who buy through the exchanges are eligible for the credits. You can see if other members of your household qualify for the credit through the exchange. Because you have coverage through your employer you will not qualify for the credit even if you choose to buy through the exchange. Please read more here – https://www.healthcare.gov/how-does-the-affordable-care-act-affect-me/ Also visit -http://www.TurboTaxAnswerXchange.com for more answers to your specific health care questions. Mary Ellen Reply And i cant afford medical with my work for me and my husband Reply So we won’t have to pay extra when we file this year right? Reply Hi Terrie, Right. Your receive a penalty for not having health insurance by March 31, 2014 in 2014, but the penalty is not assessed until 2015 when you file your 2014 taxes. For more answers to your specific health care questions, visit http://www.TurboTaxAnswerXchangec.com Thank you, Lisa Greene-Lewis Reply No penalty if you have a balance due, only if you have a refund – and it is far less expensive than buying insurance. As for the penalty, ignoring for the moment the implications of the court challenges to the administrative interpretation by the DHS/IRS, avoiding it will also mean managing ones withheld or estimated taxes more carefully so that one is not left with a refund position at year’s end. Only then can the IRS pick your pocket via this penalty. Otherwise, they have under the law no recourse against you. I have insurance through my employer. My spouse has insurance through her employer. There is a chance that she could lose her insurance in the near future from her employer. What do we do for her? If she tries to get on my insurance the cost will be too high for our budget. Reply I live in Michigan with my 2 kids and 1 in college not living with me.They are currently on Medicaid but they are threatening taking it away because I wont open a child support action against my husband who now lives and works in California. We are still together and he helps me financially but we file taxes separately. Will I face the same problems with this health care reform act? Reply Both my husband and I have health insurance through our employers. I am wondering if way are able to “shop” and compare. In other words, If we find that the market place insurance premiums are less than our employers, can we choose that instead? Reply I just wanted to give you feedback on the video: GREAT JOB! Reply My daughters-24 and 26- both are enrolled American Indians and they get medical coverage through tribal-do they need to get other health Insurance thru this Obamacare thing and if they don’t will they have to pay a penalty Reply I get medical insurance through my employer, will I get health insurance subsidy? Reply My husband and I are legally separated. We share custody of our 2 kids, who are currently included on his insurance policy. I have been uninsured due to a pre-existing condition. We each filed as “head of household” last year, and he claimed both kids as dependents. I would like to get a policy through the ACA Marketplace. Since the kids live with me (slightly more than) 50% of the time, may I claim them as members of my household, which will qualify me for a subsidy? Or do I need to claim them as dependents to do so? If I need to claim them as dependents, would that be starting in 2013 or 2014? Thank you! Reply My employer supplies health ins but being low income and paying $90. Per month copau plis med copay is killing me. Can I get help with this? Reply How much is the fine? Will I be arrested if I do not buy health insurance? Reply I’m a teacher, and I have insurance through work. I make about $50,000 a year for a family of 5. I believe I qualify financially for Obamacare, but I don’t understand how it would work since I already have insurance through my work. Do I have an option to cancel my insurance with my work (usually you enroll for a full year)? Can I have my normal insurance and Obamacare? I need to get on before March 31st (I believe), or I’ll lose out on another year. How do I work this. Reply I do not qualify for Medicaid but my children have it.One of the children was getting SSI he no longer receives it.He does not have insurance.Do I need to get coverage for my self and him? I cannot afford the coverage on the job. Reply You have to have insurance by 2014. If your employer offers you insurance, then you’ll have to sign up with them. You can always try the exchanges, but, because your employer provides the option for you to get health insurance through them, you can not get subsidized if you elect to go through the exchanges. If you can afford neither, then you can elect to pay the pay the penalty (tax) next year, but you’ll still not have health insurance for you or your child. Sorry if this is bad news. Reply Yes EVERYONE has to have Insurance and if you don’t it we get penalized on our taxes, it excludes Medicaid, Medicare and people who already have Insurance. Reply HI Tina, Yes, you will have to purchase health insurance for you and your son. Your son may be eligible for Medicaid or the Children’s Health Insurance Program. Please read more here https://www.healthcare.gov/how-does-the-affordable-care-act-affect-me/ Also visit http://www.TurboTaxAnswerXchange.com for more answers to your specific health care questions. Thank you, Lisa Greene-Lewis Reply Nice work, Lisa. I just found your 30 Sep article. You cover information I had to get from about 12 sources before I found your very informative explanation of Obama Care. Thanks – hope you get a pay raise for excellent work you are doing. Al Reply What happened to our freedom? We are becoming enslaved. Reply What happens to my freedom when you go to the emergency room or worse yet, a hospital stay that you can’t afford to pay for? I’ll tell you what happens, I (and everyone else) has to pay more for our healthcare to make-up for you. And that my friend infringes on my freedom. Reply U still r paying for people how can’t afford the insurance check into it that’s what this is all about! You are so right ! Well put. JackL Well RickE, if your going to bring that stupid line of thinking in then tell the rest of it. Like when somebody breaks the law and gets sent to prison for it I and you with everybody else pays for it ( don’t we all.) How about insurance itself when you send any of your bills in to make a claim everybody pays for it ( don’t we all). You Liberal Idiot !!!! Completely agree RickE. Most people still don’t understand this. Well said…. As someone directly involved in the healthcare industry, the sad fact is that almost all non-insured or under-insured people in this country did, in fact, receive medical care when needed. Most hospitals provide health care to the indigent because, in many cases, they are faith-based organizations that have a mission to provide the same quality medical care to anyone who comes to them. You are right that, in a sense, everyone who paid insurance had to pay a higher amount for that to happen. So the real travesty is that by the government mandating medical coverage (which will result in almost no significant change in the number of individuals actually receiving medical care), they have added, by one estimate, half a billion dollars in annual costs just for the government jobs created to oversee this massive endeavor going forward – dollars that DO NOT PROVIDE ANY DIRECT MEDICAL CARE – JUST BUREACRACY. A medical insurance broker, who represents every major insurance company in this country, told me that the insurance companies have told him that people who have medical coverage will have their premiums go up by a minimum of 100% to as high as 400%. Everyone, even if they are a single male, will be required to pay for insurance that includes maternity benefits, for example. This is what DavidA meant by losing our freedom. So you, Ricky my friend – I hope you enjoy your freedom as you pay – starting next year – at least double what you were paying before Obamacare. Yes, the enslavement movement has been building for decades. But to correct some sheep, would you rather pay for people who are not really disabled and are just soaking up the free insurance, SS, unemployment, and foodstamps cause they are too lazy to get off their butts and get a job or would you rather help those who are truly in need? It is way cheaper to have insurance so that you don’t have to pay the extra high costs of Dr.s and ERs, but why should we have to pay for people who just make excuses for not getting a job with insurance? That has been much worse than the new law that was passed. Reply that had been abvious since about the 1980’s and yet the people keep electing those who think that govt is the answer to anything when more often than not it is the key to the problem. Reply Enslaved like people in Canada, Australia, Massachusetts, not to mention Americans over 65. Maybe you will be able to get some mental health services. Reply Is it true that if an individual makes over 49,900 they aren’t eligible for any subsities Reply I read in the healthcare reform act that it is $90,000+ for a family of three before no subsidies are applied. Reply Hi Ashley, The amount used depends on which years federal poverty guidelines were used. Thank you, Lisa Greene-Lewis I’m a senior on Medicare with heavy health care costs. Is it true that out-of- pocket costs will now be deductible only above 10% of my adjusted gross income? Reply Hi Bill, Yes, the medical expense deduction threshold has now increased to 10%, so you can deduct your medical expenses over 10% of your adjusted gross income. For more answers to your specific health care questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply slight amplification: In 2013 (i.e. the return filed in 2014) it is still 7.5% for seniors. Hi, Are you referring to the medical expense deduction? If so, if you are 65 and over the medical expense deduction threshold is still 7.5%, if you are under 65 the medical expense deduction threshold has increased to 10%. Thank you, Lisa Greene-Lewis I used Turbo Tax for years, but last year they failed to deliver my Federal return, i am still waiting for it?….Anyone can help me? Thanks. Reply Since my wife and I will be paying more in insurance costs per Year ($4500) than what the penalty will be for the year ($1200). Wouldn’t it make sense to drop insurance all together, and pick up an insurance policy after the fact. Considering you can not be denied insurance for a pre-existing condition (Cancer, illness, etc)? Reply There is a difference between a pre-existing condition and a new diagnosis or injury. A pre-existing condition is a known condition. The simple answer is No. The window to enroll is not year round. And the insurance doesn’t have to cover a new injury or diagnosis that you chose to get insurance for just after the fact. The whole idea of the Affordable Care Act is that if people only get insurance when they need it and not before that, then only sick people would have insurance. And no one would be able to afford those premiums. Insurance only works when people are pooled together so everyone pays a little so that when someone needs coverage that person doesn’t get slammed with charges. Insurance only works with shared risk. Reply Nope, cause you’d be paying twice (or more) that cost per year with just the Dr. and ER bills alone. But you have a right to find something cheaper……, which is one of the whole points of the new law. Reply That actually makes sense in a horrible sort of way. If you are young and healthy, why not just pay the penalty until such time you find out you are going to start incurring major health bills? Pre-existing conditions will no longer make you ineligible, after all. You could even put an equal amount ($1200) or greater away in a savings acct every year for emergencies and still come out ahead over the new insurance premiums. Is that legal? Reply I’d rather be safe than sorry. And also the law could change in the next decade. Myself and my 32 yr old disabled son who is on SSI live with my ex husband (who is also his father). When I did his taxes last year he was Head of Household and we were dependents, with the Affordable Health Care Act, it has a question do I want to let him take a tax break or not. Will that mean he would have to buy my insurance even tho we are not married? Reply Hi Laura, You ex-husband would not have to pay for your insurance, but if you are a dependent on his tax return, and you do not have insurance, he would have to pay the penalty of $95 or 1% of his income, whichever is greater. His income will be included in your household income for determining if you are eligible for any credits or other benefits for paying for your insurance. This will also apply to your son if he does not have insurance. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply I have a Medicare and an Ibm Ibm retiree health coverage. Do i need to sign up with Medical? Reply Hi, You do not have to get additional insurance because you are covered by Medicare. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply My ex is required to cover both our children under his insurance. But according to our divorce decree, he can claim one child on his taxes and I can claim the other. I’m afraid the IRS will be confused and fine me. HELP! Reply Hi Ekatarina, The insurance companies will be providing information to each of us (and probably the IRS) about who is covered. As long as the kids are covered, you should not have to worry about penalties. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply Our government is corrupt! Reply Hi, I lost my job after 20 years , along with my health care and retirement. Am I going to have to pay a penalty when I have no income at all ? Reply Michael I think you would qualify for Medicare if you have no income. Reply Here is the problem I also lost my good paying job after 20 years…did not even consider Medicare, food stamps or any other government subsidy. Why, I like to work….went out and obtained another job, make very little money but I take care of me…..cut back on the luxuries wrong Hi Michael, You should apply for coverage on the Marketplace for your state. If your income is low, you will qualify for Medicaid or for tax credits to help pay for your coverage. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply what if I get medicare in nov of 2014 will I owe a penaity What if an employer says he is providing his/her employees insurance, taking it out of their weekly paychecks, and is defaulting on the insurance payments to the point that the employees are receiving cancellation notices. Do the employess get penalized for the employers financial issues if the insurance gets cancelled? Reply You need to contact your state’s employment regulatory agency. What you are describing is illegal. Reply I work less then 30 hours a week do I need go get the healthcare? Reply Hi Wendy, Everyone needs to have medical insurance. If your employer does not provide it and you do not qualify for Medicare, you will need to get coverage. You can apply for coverage on the Marketplace for your state. If you income is low, you will qualify for credits to pay for all or part of your premiums. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply Heaven help us if we don’t stop this steady march to progressiveism/socialism. America will not be recognizable and most will exclaim, “Why didn’t you tell us it was going to be be this way!” The crony capitalists are getting stronger and the middle class is getting crushed. There are only a very few in Washington that are REALLY trying to stop this onslaught. Most are going-along to get along. Most are trying to retain their political power. They bring sticks to a gunfight. Reply When all you have is gross generalizations, exaggerations, and name calling…It’s usually the case that you haven’t bothered to find out the facts and believe the people who are counting on you to make a rash instead of informed decision. There are legit arguments on both sides. Relying on bumper sticker talking points and shock jocks won’t get you there. Reply I am a veteran enrolled in VA Health Care. My sources of income are VA Disability Pension $568/mo. and SS $1096/mo.. Do I need to purchase health insurance? Reply Hi Mike, If you already have health care through the VA, you don’t need to purchase health insurance through the Marketplace. For more answers to your specific health care questions, visit http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply I am a small business owner with no employees will this make my insurance any less expensive? and where do I go to purchase insurance? Reply I dot agree with the health reform . To try an fix something that ain’t broken .!!! Reply Explain how it works without reforms that isn’t broken. Reply You’re insane if you think it’s not broken. Hospitals and medical facilities are going bankrupt. .. there is no money because of all these self pay people with no insurance I may not agree with the whole policy, but thank god someone’s doing something about it! Reply Argo F yourself I have Medicare. Do I need to do anything ? Reply Hi William, No, if you already have Medicare you don’t need to purchase insurance. For more answers to your specific health care questions, visit http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply Pray. Reply Obamacare is a nightmare. Just another way for the government to pick our pockets and tell us what to do. Not what our founding fathers intended. Reply I checked out my options by using the Kaiser calculator. I am at 97% of the poverty line. I am single, and have my 18 year old son living with me. I live in Iowa (they have not expanded medicaid). The information I am getting is that I can’t get medicaid, and there would be no subsidy for me because my income is too low. It also shows that I would pay $300.00 per month, with no help. I am just a bit more than confused here. Help! Reply You don’t qualify for medicaid, nor does your son. Your son is over 18, and you would only be covered in this situation if you were pregnant. However, I’m not sure where you got the information that you don’t qualify for the subsidy. If you make up to 400% of poverty guidelines, you qualify for the subsidy. Here is a link to turbo-tax’s calculator to tell you how much you would have to pay per month based on your circumstances. It will also tell you how much your tax penalty would be if you DON’T pay for insurance. https://blog.turbotax.intuit.com/2013/03/27/turbotax-health-care-eligibility-calculator/?cid=em_28704_&903&002 Reply Here’s a link to information on the income levels you need to get assistance for healthcare in Iowa: http://medicaidexpansion.com/medicaid-expansion-iowa/ It looks like you will qualify for Medicaid if you are at 97% of the poverty level. Another thing that I don’t see mentioned much but is specified by the new law is that if the cheapest plan available to you is more than 8% of your income, you may get a waiver from the mandate. http://www.schoolhealthcenters.org/top-10-things-you-need-to-know-about-the-affordable-care-act/ Reply Helpful article. However, does not cover the extra Medicare/Medicaid taxes for higher income taxpayers. Reply I would like to do a comparison with the insurance my spouse gets from his employer with what is available on the marketplace. I signed up and have an account now but they still want more information. Is there any way we can find out without having to give so much information???? Reply I have medicare & medi-cal because I am a bi-lateral amputee, however, this Summer I had to travel three different times to visit doctors. The travel was 1300 miles for each trip, I had to pay for rental cars and gas, as well as pay for parking and motel fees. Is this travel expense tax deductible? Reply Thanks for the info Reply Still very confused need some professional guidance in my health issues and income limitations Reply Until April of 2012, I had a job that paid well. Upon losing that job, I took COBRA medical. To make the COBRA premiums, I cashed in my 401k. Since I was only 53, I paid penalties and had to count the 401k distribution as income. As a result, my income for 2012 (the last time we filed taxes) was $108,000. The job I took in June of 2012 was a significant decrease in pay. I lost the job in August of this year, and am now collecting unemployment benefits. With wages and unemployment, I expect to have an income of around $30,000 this year. My wife receives a litter over $1000 per month in social security retirement. This brings our income for 2013 to about $42000. Being unemployed, I don’t know what my income will be for next year. Also, my wife has terminal cancer. Of course, we pray that she will live well into next year.. However, when she dies, her social security benefits will stop. When signing up for insurance through the exchange, one of the first questions is regarding expected income for 2014. My income could be as low as $20,000 if I don’t find a job and my wife passes soon, or could be in excess of $100,000 if I find a good job. What should I use as a estimated 2014 income when signing up through the exchange? Reply I own a home and my bills are 3-500 a month more than I make per month or what my income is from the small business I run out of my home, When your in business for yourself you don’t receive a pay check every week, Your held hostage to what sales you make, per month & what money you collect on a 30 day due date. If your lucky your customers pay before the due date. If I’m 300-500 dollars in the hole each month, how in the heck can I afford health Insurance, Medical won’t help or Insure you when you own Your own home or property. Please don’t be a smart ass when the economy was good I had Health Ins. Things are bad So how can I hook up with a Health Insurance plan when the cheapest I found is still 199 per month, if I’m already 500 per month over my bills now, and I don’t think its right to be threaten to pay penalties because you can’t afford health insurance??? I think that’s total B S, how the heck am I going to add another 200 to it? The money tree in back yard is already plucked. Reply Many companies are discontinuing employee coverage because the cost to them is going way up because of Obama. So just because you currently have insurance through an employee does not mean you are all set. So these folks are being left out in the cold on there own to procure the new expensive polices with extremely high deductibles under the “non-affordable care act” Just one of many incredible problems with this law. God help us all. Reply I own a home and my bills are 3-500 a month more per month than I make or what my income is from the small business I run out of my home, When your in business for yourself you don’t receive a pay check every week, Your held hostage to what sales you make, per month & what money you collect on a 30 day due date. If your lucky your customers pay before the due date. If I’m 300-500 dollars in the hole each how can I afford health Insurance, Medical won’t help or Insure you when you own property. So how can I hook up with a Health Insurance plan when the cheapest I found is still 199 per month, if I’m already 500 over my bills how the heck am I going to add another 200 to it? The money tree in back yard is already plucked. Reply I have health insurance but my children don’t. It is too high to put them on mine. I do not have extra month in my budget to pay for health insurance and I have tried applying for Chip and they denied me saying I make to much. I don’t get any help from my kids dads either. So i am going to be forced to do this or I have to pay a penalty? I mean what makes them think I have the money for a penalty when I don’t have the month in my budget for health insurance for my children. If I could afford it my kids would already be on it. In my custody papers my kids fathers are responsible for their medical insurance. So does that mean the fathers will be penalized or me? Reply Come November 1st, paying the same premium I did in 2012/13, will equate to a 200% increase in my deductible, 200% increase in my Rx deductible, and, get this, 1100% increase in my out-of-pocket exposure. What they failed to tell many of us is “if you get really sick you won’t actually get AFFORDABLE HEALTHCARE under this ACT” … they always leave out the really important fine print. I share this here as another means to educate others. Reply I cover my husband, 24 and 25 year old sons on my health plan. Do they still have to apply for the Affordable Care Health Plan, even though they work full time or can I continue to cover them to age 26 and then they can apply when their cut off my plan? Reply Hi Claressa, Yes, if you already are covering them you do not have to purchase health insurance in the Marketplace. Once they turn 26, they will have to purchase insurance. Thank you, Lisa Greene-Lewis Reply I qualified for Washington state Apple Health for adults (Medicaid). They wanted only earned income and dividend income and not interest from cd’s to determine if I was eligible. Do you know if income from capital gains on sale of stocks goes toward eligibility? I have gotten both yes and no answers when calling the insurance marketplace. Reply You are blanketing all policies within the same category. You should have advised her to check with certain limitations within her policy to ensure that beyond your stated age limitations her sons may/may not be included in her policy. Depending on how it is written, there are certain policies that allow beyond that age for them to be included with your policy and premiums would be adjusted accordingly. Be careful of blanket statements that one situation covers all. With certain policies older children may still be included within the policy, each situation is different Reply keep me informed please Reply I do not qualify for any help on getting insurance, ie C.H.I.P.s or Medicaid. ( I do not believe in “free” anything). I do not have the money to pay for the forced health insurance, so now I am going to be fined for it. I hope this changes soon because it is wrong that parts of my paycheck are going to others to get insurance for free while I well be fined for not having the money to afford it. Amazing they think we have a money tree to get this extra money from. Do you fore see any solutions that many of us are going to face? Is it true we well start having our license taken, property tax go up, home foreclosed on, bank accounts with leans on it, etc? Ver worried! Reply We already pay a huge amount for tose people who do not have insurance. This is especially true when they visit the ER with a major illness or injury. Premiums go up and healthcare costs rise. The 80/20 rule will help ensure that what we pay will towards the cost of coverage and not line the Picts of CEO’s. it will protect people from foreclosure when a hospital puts a lien on your home. There are far more benefits to the ACA if you just looks at wat its about. As far as getting something for “free”, you are not. Everyone now pays for insurance. Reply I see this affordable care act/Obama Care, destroying not only may health further than it already is; and turning country in to a socialist country, and I will go as far to say a third world country. I would also confess my fear that Obama is going no where. I believe that he will figure out a way to stay our commander and Chief for life. He. Believes he is royalty already doing what he wishes without consent of the American people. Really what makes you think he will ever step down no matter how many elections we hold. I watch him say the other night on Fox News: “You don’t like the new law, then you run for office. Right, he has successfully bulldozed down the Republican party and brain washed the Democrats, people we are screwed! Reply you are 100% Right! Well, certainly the ACA is not perfect, but I hope it will be flexible enough to change. As far as Mr. Obama is concerned, I think he is too liberal, yes, but he DID win the election. I don’t see any sign of him making himself dictator. There are some conspiracy theorists who would say so, but I would say….they are very wrong, and are scamming us. I think the Tea Party is absolutely wrong in this debate so far. Thank you for listening. When good people get complacent is when the hammer strikes. Not even thinking we are headed towards socialism is exactly what is wanted. You won’t see it coming until it is too late. You really need to consider all scenarios. Rhonda, the key word for you is “fear”. You are the perfect person to have if you want to influence someone with propaganda. You can “picture” all kinds of crazy things happening. You “believe” all kinds of bad things will happen. But offer nothing to back it up except a misquote by a news station that has been called out on misquoting people many times. And, newsflash, you have lived your whole life in a socialist country. In particular, a social democracy. Don’t mix up communism and totalitarianism with socialism. Public schools, public roads, public parks, the Hoover damn, anti-monopoly regulation, electric power grid, Social Security, safety regulation, USDA meat inspections, police and firemen, public sewers, NASA, air traffic controllers, etc. All government controlled socialist ideas. Balderdash! A socialist economic system consists of a system of production and distribution organised to directly satisfy economic demands and human needs, so that goods and services are produced directly for use instead of for private profit driven by the accumulation of capital. Sounds like Medicare and Social Security! They provide services for use instead of for private profit. Are you OK with those programs? I’m not totally for the bill, but not totally against it. I believe that it should have been available for those, but no penalty associated with not having the insurance. However, I think everyone need to have health insurance. It’s really a no brainer. I’d much rather have my health, than the newest electronics, Christmas Gifts, A party, A soda, etc… Some of us have our priorities in the wrong place. What happens when you have an emergency go to the hospital and follow-ups with the doctor, specialist, etc… Then I have to foot your bill and mine. FAIR? However, I really don’t mind! Its the Christian Values beset in me and I guess that’s what makes the world go round!! I really can’t afford it, and it just went up for my family and I, from $200 to $250.00/mth (Blue Cross Blue Shield of Montana), but there’s programs to help you pay for it like LAhipp. I am presently trying to apply for assistance with premiums. Maybe it would work.. maybe it won’t. Either way… GOD WILL BLESS ALL OF US!!! Reply Hi Lisa, you said you don’t believe in free anything which is understandable but if your paying for it out of your check then it isn’t free… Reply Yes L Williams – you are so right! I have a health fund where I have funds saved to pay for my medical expenses – I have never received free medical care but always carried my own finances in this area. Medical costs are so much less if you are paying out of pocket rather than going thru an insurance plan or a gov medical plan – for what Obamacare wants to charge me for my insurance, I save more than that now for my med needs – other than savinng some of my privacy and not paying into a program I am totally against – what incentive do I have for signing up for this gov controlled program? And I live in a state that has elected NOT to join into the program, so our low wage earners are not able to apply for a medicaid program – and even so, thru our state taxes, we will still be paying for those with no insurance – this ACA does nothing for our state – Interesting that no one answered your comment. I have used Turbo Tax for years. This comment, reply, and the video above, lead me to believe that Turbo Tax, supports this oscamacare act, and that they possibly do not help us get the most money back on our taxes. I did see that they were being sued in a class action law suit. So is this company part of the liberal political movement as well? If not then why is no one answering the questions from the people on here that are saying what a huge problem this un taxed, better coverage, free healthcare plan is? Reply Hi, We are answering comments and stating facts about the law only. You are correct we do not comment on any question that requires a biased opinion. That would be “political” and we don’t get into political conversation. Please feel free to continue to ask questions specific to health care and your taxes. You can also find answers to those specific questions at http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis My question wasn’t answered by turbo tax. I asked how will the IRS know if we didn’t get the insurance? I’m still waiting for that answer. Hi Frances, Health insurance providers will be providing you proof of your insurance and if you have employer-provided insurance that information will be reported to the IRS as well. This will also be handled on your 2014 taxes when you file in 2015. This is taken directly from the IRS: The individual shared responsibility provision goes into effect in 2014. You will not have to account for coverage or exemptions or to make any payments until you file your 2014 federal income tax return in 2015. Information will be made available later about how the income tax return will take account of coverage and exemptions. Insurers will be required to provide everyone that they cover each year with information that will help them demonstrate they had coverage beginning with the 2015 tax year. http://www.irs.gov/uac/Questions-and-Answers-on-the-Individual-Shared-Responsibility-Provision For more answers to you specific health insurance questions, visit http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis How the spin doctors have pressed buttons to make the word “liberal” dirty to some as well “conservative” to others, I know people who I believe would vote for Hitler if he was affiliated with their preferred party. The Office of President has term limits, two terms and that is it your out next election. Does anyone still believe the Ultra Rich Power Players really care what party controls the White House? Or the Congress? Or the Senate? Perhaps the time for law changes in how Congressional Districts are drawn as well as term limits for all elected officials has come..perhaps the way candidates are selected by parties needs to change as each Party is most interested in where their base is to hold on to those seats forever, things have to change for sure, the American people might come together be less divided, I used Turbo Tax for the first time last year, paying them money to submit my tax forms now seems silly, they along with other such companies, make millions from low and middle class Americans, well what is left of the middle class anyway. Seeing as you have no health insurance, have no ability to pay for health insurance, and do not believe in “free anything,” I’m wondering what you would do in the event that you fell and broke a leg. Would you pay the $75,000 hospital bill with a check? Would you refuse treatment and Mcguyver a homemade splint/cast? No. No you would probably go to the ER, accept treatment, and subsequently file bankruptcy. Being as you don’t have the funds necessary to afford insurance, If you did, in fact, try to pay the enormous medical bills, you would probably chip away at about 10% before the debt was passed on to your children. But hey, this is all scare tactic pessimism right? Nothing bad will ever happen to you. Reply Go to healthcare.gov you will get a Tax credit to pay for your premiums. If you make to much to get the credit then You should be able to afford. I was surprised To see the income levels they go by.A family Of 5 can make more than 100 thousan To get the credit. I was very pleased with My credit Reply Why do you not have the money to afford it? If you don’t make enough then you will get subsidized. Or do you have some extraordinary hardship that takes up all your money? Or are you saying you can’t afford it because you don’t want to? You are already paying for people who don’t have insurance. Our tax money covers the people who can’t afford it when they are hospitalized or go to the emergency room. We also pay for it with higher health care costs to make up for what the government doesn’t reimburse for them. The difference now is that someone with a treatable illness is more likely to get it taken care of before (10s of dollars) it is a hospitalization (10s of thousands of dollars). And if someone does go to the hospital, the insurance covers it instead of the tax payer and increased health care costs for everyone else. Not to mention a stronger economy with less missed work and less money diverted to sickness and injury. And don’t think of things as “Free”. There is a benefit to society for the things you think of as “free”. All of society benefits when helping people when they are down so they can get back up again. Instead of leaving them down, never to get back up again. If everyone who fell out of the middle class for a while stayed out of the middle class it would disappear over time. And if people who are poor never got help when they needed it, they would have little chance of becoming the middle class. Reply Ok Turbo Tax, let me try this in an un-political way. I work. I pay taxes so others can get health care. I do not have the money to buy health care for my family and now I well be fined. My estimated health care policy would be $350 per month. What do the many people like me do? Reply Because the “Health Insurance Marketplace” is so screwed up, for lack of a better expression, and likely to remain so for some time, all that we can do is to investigate what information about plans and pricing there is on websites such as https://www.ehealthinsurance.com/ehi/resources/subsidy-calculator#subsidyEstimator http://kff.org/interactive/subsidy-calculator/ From my family data input, the pricing/subsidies which these two websites indicate match fairly closely, in contrast to the current subsidy calculator on the TurboTax website which indicates much larger subsidies. You should also read the following article to see how some, if not many, people will be managing this Brave New World. http://www.sfgate.com/business/networth/article/Lower-2014-income-can-net-huge-health-care-subsidy-4891087.php That would worry me, too. Do you live in a state that did not expand medicaid to cover those who fall in the coverage gap? The ACA does specify that if the cost of the cheapest available (bronze) policy exceeds 8% of your income (I assume that’s your adjusted gross income), then you are exempt and will not be fined. Is the $350 per month with a subsidy or do you not qualify for a subsidy? If you can reduce your adjusted gross income, you can perhaps qualify for a subsidy (or a larger subsidy) to make it more affordable. Contributions to a 401(k) or an IRA as well as student loan interest, tuition, and fees can all decrease your adjusted gross income. There are probably other ways, too, but you’d have to ask someone who knows more. (Turbo Tax, are you listening? ) Unless your family earns a lot of money – more than 400% over the poverty level – you should be able to get some help. For myself, I’ll have to pay about $300 for a Silver plan after my subsidy, but that’s a far cry better than the $700 per month my family was paying before and than the $600 just for me due to a pre-existing condition, so I’m not complaining. Lisa, here’s a neutral website that may help: http://www.webmd.com/health-insurance/20130920/who-will-help-enroll-in-insurance-marketplace There are several pages of info, so you can explore the whole site. Keep in mind that some states are not allowing the navigators to advertise or otherwise let people know they are available to help (go figure), so you may need to seek them out. Hope this helps and that you can find an affordable policy. Being uninsured is scary. Lisa, your estimated health care policy as you say is $350 per month. Did you actually go beyond that and see whether or not you qualify for a subsidy? Did it actually say you don’t qualify for a subsidy? I have a family of 4, my children have medicaid but myself and my husband do not. I work less than 24 hrs a week and cannot afford insurance for us. Medicaid wont cover us, what should I do?? I work but not enough and our total household income is less than 15,000. Reply Hi Catherine, You should check the marketplace for your state. With your low income and family size, you and your husband should qualify for assistance in obtaining insurance, or for Medicaid. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply Find yourself a large sturdy box that will house your entire family and set it up a beach somewhere. That is what we are doing when all the sxxx hits the fan. Good luck sweet heart you are going to need it. Reply If you make below a certain amount per year (around $9700 if you’re single with no dependents) you can get an exemption from having to buy insurance. If you make around $10,000 a year or below you can be covered by Medicaid if your state expanded Medicaid. If you make 12,000 and above you’ll qualify for a subsidy to entirely cover or nearly cover your cost for insurance. Google Kaiser Foundation calculator to get an estimate of what the health care plans will cost you. Reply Thanks. Answers, general numbers, a place to search. 🙂 will you help me please? This health care is hard for me to understand. you sent an e-mail before telling me that my tax breaks exceed my cost of my ins. but I can find it. Reply can you help me? This is a nightmare. Reply to all remember Congress didnt give the IRS the power to collect this but you will receive nasty letters from them but they cant enforce it they made sure of this when they passed the bill . Reply interesting. Im trying to find out what the actual penelty is since i do not have an extra hundred dollars a month, Reply Hi, If you don’t have insurance by March 31, 2014 and you are required to purchase insurance, you will receive a penalty of $95 per adult in your household, $47.50 per child, capped at $285 per household or 1% of your income if your income is over $20,000 if you’re single and over $55,000 if you’re married. Our calculator at http://www.TurboTaxAnswerXchange.com will give you an estimate of the amount. Thank you, Lisa Greene-Lewis start by deleading social networkings going off the grid and the famous buy ins cancel ins switch ins the way people due with car insurerance get agood safe remove all ties with banking cant levy nothing i got real wise over the yrs myself and familys delt with the f@# gov and state laws u should have seen this back in march when the as****h& 2010 talking about it and the idiots still voted for him 2nd term but the penaty is the best way to go so far or find the islands as primary residence speaking from i have dual citizenship know how to use it impeachment of the president ANYBODY REMEMBER IT and last time we all used it still havent seen a org to start one looking at my screen name tells a story. in ending good luck and stay on top of it IRS cannot threaten you for this or hold back refunds for wages on your tax form very seperate issues. paying income tax vs paying health care. why wasnt voted on by the people CAUSE WE WOULD NOT PASS IT . and they talked about how the mafia extorts money and least they can run a bussiness and not go in debt If you don’t like the plan, say so in an understandable way….I can’t tell what you are trying to say. I THINK you don’t like it, but I can’t even tell that for sure…. I’ll make it simple for your understanding, If I don’t qualify for refinancing my home?, because I don’t show enough income, how the heck can I afford Medical Insurance???, when I’m over 300-500 a month in paying my bills? You mean to tell me you can’t do the math? If someone’s 500 a month in paying out what they owe, and the Law says at my age over 50, you have to purchase medical Insurance, cheapest at my age being 198.00 per month, 500 + 198.00 = 698 per month = bankruptcy.. You can’t figure out what I’m saying here you must be one of jerry’s kids?????? It’s a no Brainer. Try this link to turbo-tax’s penalty/payment calculator. https://blog.turbotax.intuit.com/2013/03/27/turbotax-health-care-eligibility-calculator/?cid=em_28704_&903&002 As for the penalty, ignoring for the moment the implications of the court challenges to the administrative interpretation by the DHS/IRS, avoiding it will also mean managing ones withheld or estimated taxes more carefully so that one is not left with a refund position at year’s end. Only then can the IRS pick your pocket via this penalty. Otherwise, they have under the law no recourse against you. That makes since because “they” said that it would not be a tax but a penalty. Still can not figure out why IRS is even involved in this anyway. Reply The Supreme Court ruled that it was only constitutional because it was a tax. So the White House can either say it is constitutional (and therefore a tax) or it is unconstitutional (and therefor a penalty). Wow really, way to go congress if this is indeed true. Reply If you do your taxes right and don’t get a refund, then they can;t take a thing from you,,, send me bills all you want the SCOTUS said they can only take from your tax refund… so do your taxes right and don’t have a refund due that they can get there hands on I really really really hope you are correct. Otherwise it really will be a nightmare. Reply My husband works part time and he has been insured individually. Can he still apply for health insurance under the Obama care or does he have to go on my policy at work since he is offered insurance even thou it is more expensive? Reply Hi, You husband does not have to go on your policy. He can check out his options on the Marketplace and determine the best option, including the policy he currently has. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply The calculations say that a married couple with two children under age 26 do not qualify for any aid what-so-ever and that the cheapest health coverage possible is over $1,900 a month…..family income was $34.500 gross in this example. Now if this tool calculates correctly……this would leave that family with just over $400 in usable income after complying with this law. I have to conclude that this is not intended to get the uninsured into a medical insurance plan but rather a back door method of lifting another $300 or so in Federal Tax revenue from every household falling anywhere near this situation. We in Texas call that a scam!!! Reply Hi Robert, there is something wrong with your example. I live in Texas too and my husband and I, with an income of $32,000 qualify for $680 each per month in tax credit, which is over $8000 each per year. The most expensive plan, for smokers is $1900 per month for both of us, which makes it out of pocket $540/month. Hi 🙂 I worked full time for the first 3 months of this year, and worked part time for the rest of this year. I am 60 years old, a widow, and went on Social Security last February. I don’t have any health insurance and wanted to see if I qualify for Medicaid and need to know if where they ask for income, do I put in both the social security and job earnings, or just job earnings only? My son is 29 and lost his job due to cut backs and hasn’t been able to find another job because the economy is still not fully recovered here, so he is unemployed and lives with me. This year for both social security and my job, I will make approximately 27k total. Last year I made about 20k total. What is my best option for insurance because I barely have enough to pay for rent, groceries, car insurance, phone, gas & electric as it is. I worry that if I have to pay too much for health insurance that I won’t have enough money to pay rent every month. 🙁 What do you think is my best option for health insurance? Thank you very much 🙂 Reply Hi Deborah, First,they will include your social security income and your job earnings. The best option would be to check with the Marketplace and figure out what fits into your budget. You may also be eligible for a subsidy to help you pay for health insurance. For more answers to your specific health insurance questions, visit http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply useless dribble that you can get anywhere. The real questions are who exactly would have an impact, how much is the federal tax penalty if you dont want to turn your life over to thier system. Reply I live in MA so we have already had this healthcare requirement and tax penalties in effect for awhile now. A lot of people can’t afford healthcare and have made the choice to just pay the penalty which in the end is a lot cheaper. Employers only have to pay a minimum of 33% in order to be compliant with the laws so a penalty of between $300-600 is nothing in comparison to the between $3000-$6000 you pay out in health ins each year Reply My daughter will turn 26 on 12/30/13 and as I understand will no longer be covered by our health insurance. She is a registered nurse and had 1/2 yr income in 2013 until she enrolled full time in college for post graduate work. For 2014 she will ot have income. what is her best option for healthcare? Thank you Reply please keep me informed. Ron E Moore Reply I am 69 and retired. We are a family of 3. We live in the Philippines. My wife is 51 and my son is 16. They are both U S citizens. Do they have to get ObamaCare? Reply please keep me informed. turbo tax is great Reply Obamacare is nothing but another ‘Tax farm’ – that is an important historical term, please look it up: TAX FARM. Go to the Walgreens clinics, or buy into a Doctor co-op, and kick the commie insurance companies back to Eastern Poland. Reply Most people have this entire arguement upsidedown, and let me tell you why: Medicine (at least in this country) is nothing but a religion where doctors are the priests. This is a subsidy to the doctor’s, not the patients. This is no marketplace, just a huge profit to the insurance companies. Smart doctors are figuring this out….look at QLIANCE in Seattle. They don’t accept insurance, you just pay the doctor $70/month and you see them as often as you want, without copays and deductables! With ‘Insurance’, if you have ‘prescription coverage’, you are paying more for your drugs than just getting generic! People, there is no such thing as a free lunch, please wisen up for all of our sake. Insurance only ‘insures’ the provider gets paid, it does not insure your health. This is nothing but an Orwellian move to control our lives more and more. I would appreciate it if Turbotax stood up to this fascism, and not be a trumpeter for this fiasco. Reply What about the illegal alien parasites? How is BHO going to collect fees from them? Reply Turbo Tax has their act together! Wouldn’t it be nice if the Obama administration did? Thank you Turbo Tax for your clearly informative presentation. I know I will feel much better using Turbo Tax AGAIN this coming tax season Reply Our household income technically qualifies for some subsides for health insurance, but my employer offers qualified ‘affordable’ single coverage. My husband is stay at home and works very part time in a paid coaching position at a public school. He is not offered insurance. Would he (and our children) be able to get coverage seperately from me via the exchange with a subsidy since he isn’t offered coverage from his employer or, since he could be covered through my employer’s very expensive family coverage does he not have that option? (family of 3 soon to be 4 making around $60,000). Reply Hi Lacey, Your husband and your children can get their coverage from the exchange. As long as the coverage offered by your employer for you qualifies as affordable, you will not be eligible for a subsidy to purchase your own policy. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply Unfortunately, if you qualify for your employer’s single plan, your husband and children will not qualify for any govt subsidies. Your options are: to purchase family coverage under your employer’s plan (hopefully with the employer paying a percentage – and the premiums paid reduce your taxable income); or purchasing the single coverage under your employer’s plan (since you are not eligible for Obamacare), and your family goes to the exchange and pays full fare – with no tax benefit. You will need to go to the public exchange to compare the two options (if and when the exchange website is working). Sorry – you are one of the many middle to lower income Americans who is being screwed by Obamacare. Reply If my husband and I file “married filing separately” can we consider ourselves two households, if we live in the same house? Can we consider ourselves two households if we are married but live in two different homes? There’s a HUGE difference, $ wise. If we are one household (he’s a Vet, covered by the VA, so he’s fine) I will have to pay $500/m wf huge deductible. If we are two households, I get subsidy & would only pay $300/YEAR for the best coverage.. that’s enuf to have to consider.. !! Reply Hi Dee, If you’re married, you must file a joint tax return for 2014 in order to get lower costs on Marketplace coverage based on your income in 2014. You can check out the marketplace for your state to confirm that this applies if you do not live together. 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 is your adjusted gross income (the bottom line on page 1 of your long form tax return) plus non-taxable social security, non-taxable interest and foreign income. Taxable IRA, 401K and retirement distributions are part of your adjusted gross income, non-taxable distributions are not. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply Mary Ellen: agi,ln1 plus non-taxable ss? Do you add back the difference from ln 20a? Will turbo tax fix this as well? Hi Ernie, For 2012 tax returns, you would use the amount on Form 1040, Line 37, plus the difference between lines 20a and 20b, plus line 8b, plus any excluded foreign income. TurboTax will make the proper calculations when you file your 2014 tax return in 2015. Thank you, Mary Ellen If my employer offers insurance but it cost too much can I still go the Health Insurance Marketplace and get insurance. If not will I still b e able to get help paying for my insurance since I make under the amount that is required per single person? Reply Hi Sarah, You can shop in the marketplace if you have employer provided insurance. Whether you receive assistance will depend on if your employer-provided insurance is “affordable” and “meets minimum value”. If your employer-provided insurance meets both qualifications, you won’t be able to get lower premiums in the Marketplace. Please see this link for more https://www.healthcare.gov/what-if-i-have-job-based-health-insurance/ For more answers to your specific questions, please visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply What about those of us covered under the Veterans Health Insurance? How are we going to prove our health insurance through TurboTax? They dont hand out insurance cards or policy numbers. Reply Hi Robert, According to the IRS Question and Answers on the Individual Shared Responsibility page – Insurers will be required to provide everyone that they cover each year with information that will help them demonstrate they had coverage beginning with the 2015 tax year. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply Thank you Mary Ellen. My husband has VA health coverage and is able to get an ID card now for the asking. Also, his healthcare acceptance paperwork has identifying info that can be used for tax purposes to demonstrate his coverage. Hi Robert, If you are covered under the Veterans Health Insurance, they would report your insurance coverage information to the IRS. You would not have to prove you have insurance to TurboTax, but the software will be up to date with the tax law and will ask the necessary questions related to the tax law when you file you your 2014 taxes in 2015. For more answers to your specific health insurance questions please visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply Thank you Lisa. Thanks Lorie, the VA actually sent me a letter stating that I was enrolled and there was nothing else that I needed to do. Also I did find out that the VA does give me out cards with limited information that them. Thanks! Robert How is Obamcare, or the Affordable Act going to help you? If you live off the government your all set, and the working people of this country will continue to support your lazy a–. My health insurance premiums are going is going up by 28%, and the deductible is now $6,000 a year. Obamacare is designed for one thing, and that is to destroy the United States. You low information voters have only yourselves to thank. When there are no more jobs, and the government no longer has money coming in from the working class, health care will the least of your concerns. Who cares if you have health care when you can’t afford to buy groceries(sorry you all have EBT cards), or pay the rent(again I am sorry you have government housing assistance). Reply What about us working people who work 40 or more hours a week and have Medicaid because we are considered low income, because we are single parents who work hard struggling every day to support the child(ren) that we have due to another parents inability or unwillingness to pay the required child support to help support that child? Does that mean that we fall into your biased, close-minded frame of thinking and that we are all “lazy a-“? I’m sorry but not everyone is as arrogant, ignorant, chauvinistic, and pigheaded as you obviously are on your high and mighty throne that makes you think you are god. Reply Amen Christina! Right on Patrick. If things don’t change, I will consider leaving the country. Reply Where will you go, Somalia? Almost every country in the world has had socialized health care for many years. A friend of mine runs a one-man construction company. He says his health care premiums are going to be cut in half. He was paying for good coverage so that is an apple-to-apple comparison. Hi, Just wondering how the household income in my case would be calculated. We’re a family of 3 (me, my husband and my 10 year old son) usually, but last year my mother in law moved in with us for the short term. Is her income included with our household, even though she shouldn’t be? She is moving out soon but i’m not sure that she will be gone before we have to apply for the new healthcare. Thanks! Reply Hi Jessica, That is a great question. Your household income is made up of the income of the people who are claimed on your tax return. As long as your Mother in Law is required to file her own tax return, and she is not a dependent on your tax return, she is not counted as a member of your household and her income is not included in your household income. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply I have several questions no-one has been able to answer for me: 1) household income – for the exchange is this adjusted gross income or taxable income? 2) I buy my own insurance but my husband has none. He is self-employed & cannot afford it. Can we get insurance separately (him thru exchange & I keep mine)? 3) By using the exchange, does this give the government access to our personal health info? Reply Hi Nadine, 1. Household income is a Modified adjusted gross income. Your adjusted gross income is modified by adding in non-taxable social security income, non-taxable interest, and foreign income. 2. You and your husband can have separate policies. He can get his through the exchange, using your household income. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply My 25-year-old daughter is on my employer-based health insurance. Will she be able to remain on my insurance until age 26 which is the current law? What will happen in May of 2014 when she turns 26? Will she need to get Marketplace insurance that’s effective on her 26th birthday? If so, when should she apply for that coverage? Thanks for your help. Reply Hi Sharon, Your daughter has a little time to get insurance when she turns 26. She should be eligible for COBRA, and she can get insurance in the Marketplace. I think if she starts looking in April, she should have coverage by June. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply I am on Medicare and plan to also purchase an Advantage Plan. Would it be more beneficial to purchase something through the ACA website? Reply Hi Kris, The best way to decide what is more beneficial is to to go your marketplace. Only plans purchased on the exchange are eligible for the payment assistance credit. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply I thought if you were going to be on medicare you couldn’t get insurance in the marketplace. Can you get a supplement then Cheryl is correct, You cannot by Medicare supplemental insurance on the Markeplace. I keep hearing people talk about the “employer mandate”, and how it is the provision of Obamacare that requires the employer to pay (not just offer) for medical insurance for employees at companies larger than 50 FT employees; effective 2015. One of the stipulations is that the mandate only pertains if the employer pays for other employees, so it’s a “what you do for one you do for all” concept. Is this true? Reply Hi Marcus, There is no requirement that large employers pay 100% of the cost of medical coverage for their employees. There are provisions that require large employers to pay a penalty if even one of their full-time (30 or more hours per week) employees qualify for lower costs on their medical insurance on the Marketplace than what the employer offers. If the employee’s share of premium is 9.5% of household income or less, and the policy deductilbles and copays cover at least 60% of the total allowed costs of benefits provided under the plan, it is considered to be an affordable plan. Any plan offered on the Marketplace will meet these standards. There is no requirement that all benefits be equal, as long as the groups receiving a certain package of benefits is not selected to discriminate against legally protected classes, like age or race. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Mary Ellen Reply Hi Lisa, My question for Oct 9 seems to have disappeared from this thread so I’ll try again: My wife is a Cherokee Nation Citizen and receives all of her healthcare through the Cherokee Nation’s Healthcare System. Is she required to purchase additional coverage? (I am covered by the VA, Medicare and a private Supplemental Policy already). Reply Hi Ken, Under the Affordable Care Act, she is 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, Lisa Greene-Lewis Reply Everyone should have insurance, by doing this perhaps the insurance co. wont be able to charge so much problem, and at least you can find insurance. Reply The clock-stoppers, the regressives, would have you believe 54 percent of Americans are against the ACA. Well, 18 percent (one-third of the antis) are progressives who desire a single-payer system. They’re against Obamacare because it doesn’t go far enough. That leaves 36 percent, and of those, clearly, half couldn’t tell you why they’re against it. So, that leaves 18 percent (i.e., the tea party) who don’t like our president, who was re-elected as a referendum for the ACA. Why the tea party doesn’t like BHO, I don’t know. I can’t quite put my finger on it. Don’t forget, comprehensive health care is an idea first put forth by the clockstoppers as a way to get the “bums” (you know, the 47 percent) to pay their fair share. Reply get your head out of the sand, ostrich, the muslim obama will destroy this country thru socialism welfare, disability creating a nanny state and this health care will finalize it. Reply Amen, brother! Reply John the bums will get it free now so what the heck are you talking about? I don’t belong to the tea party, and I know a lot of other people that don’t agree with this new so called Affordable Health care plan. Who is it affordable for the bums??? Give me a break. I’m middle class. I paid for my childrens insurance when they turned 26. I got a better plan with BCBS for them than this affordable health care plan. Do you really know what you are talking about?? I don’t think so. Reply Sadly the sheep will always be sheep. I’ve been informed by BlueCross BlueShield that my monthly premium will increase by 50%, my annual deductible will triple and my co-payment increases 50%. Can someone explain how I benefit from higher premiums and less coverage? Reply THANK YOU! THAT’S WHAT I’M SAYING! And on less than 25k a year….? AND after I got laid off, and lost my benefits (health premiums that had gone up 60 percent) and lost my only income, COBRA was quoted as another 56 percent higher, in addition to… Who can handle that? Reply ACA coverage will be much cheaper than COBRA. yes Stan, but remember now everyone will have insurance (hahahaha) even if you can’t afford to pay for it. Reply We can not afford insurance. My husband has it thru work but we can not affairs to add meat any price much less what they charge. No one should have ever been forced in to this. We would starve if we added me to a policy. Reply I have been unemployed since May 2012 and have only a very small Social Security I took early at age 63. Will I have help if I can’t afford insurance? Reply HI, Yes, you should qualify for Medicaid, or for assistance in paying for your medical insurance. Check out the Marketplace for your state. Applying there will let you know exactly what assistance you will receive. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply 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 – https://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 How can u find out about if u can get help with paying insurance Low rates. I am single mom with 2 kids not making 15,000 a year. ? Reply The best place to get that information is your state’s Marketplace. With your low income and your family size, you should qualify for fully subsidized insurance. Reply mi live in Arizona and I need medication . I am unemployed . please help me Reply Your marketplace is http://www.healthcare.gov. You can apply for assistance there. They have free insurance as well as low cost insurance, and certain government benefits for paying for insurance and medical bills are only available if you get your insurance from the Marketplace. Reply I have health insurance through my employer. The question is on my daughter. Her father is required to carry her health insurance however he has been known to let it drop with out letting me know. I claim her on my taxes. Do I get fined if he lets her insurance drop. I have tried to get it to where I carry her insurance but the court would not let me because he said he would. Reply Yes, you will be fined if your daughter does not have insurance, because you claim her as a dependent on your tax return. Reply What about students who are living and studying in a foreign country and who have insurance in the country they are residing? Reply Do I have to pay a fine if I just get catastrophic insurance from an independent carrier and don’t buy from an exchange. Reply If your insurance does not meet the minimum standards, you will have to pay a penalty. Reply I’m retired and the company I worked for pays 25% of my monthly premium and I pay 75% of the monthly premium. That 75% I pay totals around $10,000.00. a year. This is the only plan offered by my company and we plan on continuing on this plan till age 65. I was wondering if my wife and I may receive any tax credits on our 2013 or 2014 tax filing based on the percentage of our income paid for health coverage. Reply If your company does it’s homework, it can offer you a cafeteria plan where health insurance is offered at a certain percentage. Yours is at 25% now. The amount you pay that is deducted from your paycheck can be deducted before taxes. So you don’t pay taxes on that amount. That is how my company does it. Reply my understanding from our Health Ins broker, the law states you do not pay more than 9.5% of your earned income for coverage.(assets not part of the equation) If the employer ‘charges’ more out of your pay than 9.5% you can shop on the Marketplace/exchanges. Reply The tax credits are only available for policies purchased through the state Marketplace. Reply If I purchase insurance thru the marketplace and receive a subsidy of a portion of the premium, will that subsidy amount be taxable when I file taxes in 2015 for tax year 2014? Reply The subsidy is not taxable, but if you understate your income for the year, and your subsidy was too great, you could have to repay some of it. Likewise, if you overstate your income, and didn’t receive all of your subsidy, it will be refunded on your tax return. Reply This is a huge compilation of angles on what is happening with the ACA. And when it comes to taxes, I understand everyone is really only interested in their own money, their own pocket, their own lives. But we are part of a whole, as a society, and have to consider ourselves as such, and being that as it is, we are responsible for taking care of our own health; because it DIRECTLY affects others. In theory, if we all take care of our own health, the health of society in general, improves. Currently, the health of our country is not very good. That’s an undeniable fact. I have yet to see that point enter the conversation here or anywhere else, when discussing healthcare, health insurance, and taxes for such. If we as a nation want better roads, we can’t (or won’t) fix them with our own hands, so we pay, with taxes, to have them improved. You want to be in better health, right? And so, as a nation we want better health… Reply Keep your opinion as your own. (We is a huge assumption) and I don’t believe your single opinion speaks for the majority of America. What good of a nation are we, if we are financially in the dump? I am not of the ethical or moral position, that I believe, I have to sacrifice my wealth so that another can benefit. You can only redistribute so much…until it’s all gone! Reply It’s not a declared opinion, it’s a practice in logic. I haven’t imposed or assumed anything. It’s a simple matter of taking care of our own health, not paying (either out of pocket or via taxes) for the health of others. Take care of your own health, then you eventually don’t have to pay for others. Do with your wealth as you will, that’s a right for us all. My only point is, I think the majority of America wants to be healthy. I could be wrong, but I think they do. I do not have heath care and need it badly a low cost heath Care Americn great ideal. Is it a bad thing for company to compent for our dollars. Also with some company that make is sick why not have heath care. Reply Hello, I was wondering. Through my 1199 union, I only get hospitalization insurance because I am only part-time. Does that meet the requirements ? Reply Live in the State of Oregon…Son (29 ) as been unemployed since 2009. I claim him as a dependent as he lives in my house and provide 100% of his needs (food, clothing, etc.). He is not eligible for OHP as he is neither pregnant or a minor. Per the state he still will not qualify for OHP. Are there options for this type of situation or does he continous to fall into what apparently is a black hole in the system? Reply Hi, You son should be able to purchase a policy on Cover Oregon at http://coveroregon.com/ For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply Hi Lisa. What will be the tax consequences and the changes to turbo tax for tax year 2014 that we will be filing in early 2015? Details please. thanks. jh Reply Thanks Lisa for the information. First of all, you will NOT be penalized until you are actually in the situation that you would need H.I. If this info is correct, Lisa, then you are saying that for NOT spending the tax money that we the people are paying, we will be penalized on it. This seems like a skewed plan drawn up to build monetary sustainability….for the government. I hope people understand why the “government shutdown” isn’t so bad 🙂 Reply I only have child support and no income of my own. I am unemployed and am a part time student. I have no insurance and just pay as I get billed from any doctors when I go , which is rare. Since I have no income of my own will I have to purchase insurance? Reply Hi Betty, If you don’t have any income you will not be required to purchase health insurance. If you earn under the IRS income requirement for filing a tax return (about $10,000) you are exempt. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply What if you have a 28 year old unemployed family member that you support 100% and claim as a deduction when I file my taxes. Will I have to pay the penalty for him not having any health insurance? No, you won’t have to pay for a dime of it! My tax dollars that I work for will support you!! Reply you will most likely qualify for Medicaid/ state health insurance since you have no income. and now you are required to obtain that. The whole idea of this is to cover those who have NO or limited income so you get the care needed and hospitals don’t have to write off your visit to the hospital. Reply What the hell does me getting sick or my son splitting his head open have to do with taxes? And why are we forced to pay for something we may not use? This is one MAJOR SCAM! Reply I would think if you became ill or your kid splits his head and you don’t have insurance, you may not be able to pay the bill if it’s thousands of dollars. *You may be able to. but some may not. Then the hospital has to suck up the expense and it seems like hospital/doctors cost would go up to keep compensating for those that cannot pay the bill. Not really fair for those who do have insurance. Just my thought. Reply Oh and deductibles for the grandiose healthcare that the potus exempted himself, family, congress, unions, Muslims from are out of this world. $762 a month with a $12,316 predictable. Yeah that’s real affordable…Not! Reply um it doesn’t. Reply I have VA benefits, am I still required to purchase insurance? Reply Hi Lynn, If you already have health insurance through the VA, you are not required to purchase health insurance. For more answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply My son (31) and granddaughter (4) are currently insured by NH Medicaid. Do they need to purchase additional insurance? Reply Hi Debbie G, If they already have Medicaid, they don’t need to purchase additional insurance. For more answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply I thought the AFA was to help those needy Americans that can’t get insurance, or afford insurance, but according to the information I am reading, if you make less than $10k per year, you aren’t even required to purchase health insurance? Now who is this supposed to help? Aside from one comment on this entire thread, the only information that I am gleaning is that this act is going to hurt a whole lot of people and make health insurance MORE expensive!!!! Oh, not to mention that congress is eligible for a 72% subsidy to purchase through the marketplace. Gotta love this administration. Such a caring, freedom loving, group of people. Not! Reply My son is in almost in the same boat – lost his group insurance in 2009 and hasn’t worked since and has a pre-existing condition. He cannot get medicaid and has zero income. He will not qualify for any help from the ACA. So how will he be insured????? Reply He will qualify now under the law. if you make below a certain amount you don’t qualify on the exchange because technically you qualify for medicaid BUT you don’t actually qualify for Medicaid if you own more than $2000 in assets? i guess this is their way of forcing you sell off all your assets to pay for insurance and then once you are flat out broke they’ll give you medicaid. Is this the official answre? Reply http://www.consumerreports.org/cro/2013/03/download-our-free-guides-to-health-care-reform-and-medicare/index.htm Thanks for the information David Wooster. It is very hard to hear this kind of law passing specially in a situation that my family is going through at the moment. I have 3 small boys to support that are 2, 3 and the older one is 5 so just imagine! It is hard times for me as the dad that hasn’t found a job due to lack of education. Well I know God will help,supply and provide the means for our crisis at the moment… If you make less than $10k, you can enroll in medicaid, so you don’t need to “purchase” anything. I’m 26 and will be saving 33-45% on my health insurance per month next year. Depending on the plan I choose. Reply I am permanently disable and do not qualify for medicare for 24 months. You can apply for medicaid but you are limited on what you own such as a house or vehicle. Also, you are limited as to how much you have in savings. I own two vehicles: a 1991 toyota with 300,000 miles and a 2001 PT cruiser with 100,000 miles. This disaqualified me from medicaid. Since you are available for Medicaid you have to get your health insurance from Department of Human services. Reply Agree! Reply ” not required to purchase insurance”, not quite accurate. You must HAVE it/obtain it. If cant afford it, the State will pay for it for you.( under the 10k income level) Thus you aren’t writing a check to purchase, but the State will cover it for you instead. Reply The marketplace will determine if you are eligible for Medicare or Medicaid and sign you up. Remember politics, if you are worried you will spend less money and the economy slumps making the other party look bad. This will add up to a savings for American taxpayers within about 10 years. Our right to affordable healthcare and not to be treated like cheap disposable labor is involved with our rights to life and liberty. My mother died because she was self-employed and made too much and too little for preventative care and cancer treatments. This insurance would have saved her life but like many people she felt invincible to illness and gambled with her life and lost. This is a historic moment for equality of the working class vs. management. Congress gets a subsidy as part of there service to the government. Reply Hi Lisa, I’m a dual citizen, have a home in the US and in a different country. I work for a company in the US but live most of my life (thanks to telecommuting) in the other country. A healthcare plan in the US would not benefit me since I basically don’t reside there. Is there an exception for me out there that would allow me to not have to get the insurance plan? Thanks, Daniel Reply Hi Daniel, Yes, if you live overseas, you do not have to purchase health insurance. For more answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply Wake up ! with the AFCA if your mother was over 75 she would not have gotten treatment anyway .Artilcles 55 -58 . Reply I have a question it seems I can’t get a definitive answer to, I am a single father who is supposed to get child support/partial insurance from my ex, unfortunately I don’t receive either and I’m stuck with insurance through my company which totals about $5300.00/yr, plus whatever copays and prescriptions, I have two teenage daughters, so it totals well over $6k/yr, can I write any of this or all off on my taxes? Reply Hi Tony, Yes, if you itemize your tax deductions (file schedule A), you can write off medical expenses as long as they’re more than 10% (7.5% for 65 or older) of your adjusted gross income. So for example, if your income is $50,000, you can deduct medical expenses more than $5,000 ($50,000 x 10%). Thank you, Lisa Greene-Lewis Reply Lisa – It looks like Tony is paying his premiums through his job (it doesn’t sound like he’s self-employed) so his premiums are deducted from his paycheck. If that is the case, his premiums would not be able to write off the premiums on his tax return. Bryan is right, and we are being fed a script from a 2-3 page notebook on the topic. My 28 year old daughter was insured until this week through her employer. She is now working part time and therefore is no longer insured. She’s attending the university full time and had to cut back on work in order to go to school and have enough time to study. She checked on the insurance through the university but she can’t afford 2400 Dollars a year. What is her best option? Reply I appreciate the information, doesn’t make me feel any better about it. Instead of saying the government will help subsidize these premiums, why not say who really covers this funding…….The Tax Payer! I honestly think there are those out there who think the government is giving them something…..it’s not…..it’s hard working people having more of their hard earned money being taken out of their pockets. Reply AMEN Tracy!! That is the misconception most people have! They think that “Our Government” has some kind of magical bank account that all this “FREE MONEY” is kept in. Wake up people!! This is Obama and the Democrats “spreading the wealth” theory!! I go to work everyday, have to submit to random drug testing, pay outrageous taxes and healthcare premiums, contribute to Social Security (which I’ll never see a penny of!!) Medicare etc…. Just to pay for those of you wanting everything for free!!! Reply um, the ‘tax payer’ pays for everything in this country. That is how it’s ran. If someone goes to the ER and doesn’t pay the bill, tax payer$ are used and costs go up . Now, those paying premiums( either employers or the employee), that money helps pay premiums for those who cant pay premiums. Same concept, different method. Reply I have had my own individual health insurance plan for many years and according to this article I’m all set and don’t need to do anything, however, I just got a notice from my health insurance company saying that my current plan WILL END on the last day of the year and I will need to go to the marketplace and select a new plan. I don’t understand the apparent contradiction. Reply Hi John, If you already have health insurance you don’t need to do anything, but if your plan ends and they are not offering an opportunity to enroll again then you would need to purchase insurance in the Marketplace. For more answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply My daughter does not have a job and cannot afford healthcare, she lives in MA how does she go about getting help with this? Reply Hi Erika, Your daughter should check out the Marketplace for your state. She will find all the options she qualifies for there. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply its all a rip-off Reply She should start by going to healthcare.gov and enter her state. It will direct you from there. Reply My 27 year old son is unemployed and has no income. He is no longer covered by my insurance and has none of his own. He has no income and no assets and is living in my basement, I currently claim him as a dependent since I fully support him. Will he be required to purchase insurance, and if he doesn’t what are the ramifications? Reply What if you moved out of the country in August of 2013 and plan on returning August 14th? How will these dates affect the law? Surely I don’t have to have health insurance if I am living outside of the United States in order to not get he tax penalty do I? Reply Hi Sean, Did you mean returning August 2014? You are not required to have health insurance until 2014. If you live outside the US you are not required to have health insurance. Once you return, you would need to have health insurance. If you have a gap in coverage of less than 3 months you will not receive a penalty. For more answers to your specific health care questions, visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply SHUT THE MUSIC OFF WHILE SHE TALKS Reply Do we get charged more if we decline getting insurance for a dependent even though I get insurance through my employer Reply Hi Cindy, Yes, you will receive a penalty for not insuring your dependents in your household even if you have employer provided health insurance. In 2014 the penalty for children is $47.50 per child. Children under the age of 19 may qualify for Children’s Health Insurance Program (CHIP) or be covered under a family plan through your employer up to age 26, if your employer plan offers dependent coverage. They may also be eligible for coverage through the state exchange marketplace. https://www.healthcare.gov/are-my-children-eligible-for-chip/ For more answers to your specific health care questions go to TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply But part A only covers inpatient hospital stays. Nothing outpatient. Therefore she would be classified as not insured to a dr office because that is outpatient. Reply I have a friend that’s let’s me stay at his house for free as I’m not working and have no income. Do I have to put his income in my application? He’s totally separate from me except I stay rent free in his spare room. Thanks Reply Hi AJ, No, you would only include his income if you claimed him as a dependent. If you do not have any income you are not required to purchase health insurance under the Affordable Care Act. Please visit TurboTaxAnswerXchange.com to see more answers to your specific health care questions. Thank you, Lisa Greene-Lewis Reply I am covered by my gay spouse but can not afford to pay the premiums. I am not working and can not. Can I qualify for cheaper coverage. He pays almost 700 per month for me now. I’m 62 Reply Hi Larry, If you are a legally married same-sex couple, you will now be required to file your taxes as married. If that is the case, you can try to find cheaper health insurance in the marketplace, you just have to remember you will have to include your spouses income when you apply for health insurance. For more answers to your specific health care questions, visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply vidio was informative – background music was a distraction. Reply What they forgot is what if your employer offers insurance but you can not afford to pay for it. That’s where I am at. I can pay for mine but it will cost me an extra $400 a month to insure my son. I am low income and can not afford this. Reply If your company offers insurance you do not qualify for a subsidy. This is not Fair!!! You do qualify for a subsidy if your out of pocket premiums are too high. I would talk to a local representative who signs people up if you can qualify. It depend on your total income and how much out of pocket your premiums are. Two of my adult daughters are divorced with very low incomes. I am paying for their individual medical insurance at this time which is very expensive to me. Are they eligible to sign up for insurance with one of the exchanges even though they have insurance.. Reply Please do your research and look for facts. It not as simple as “yes” or “no”, as there is many variables. If you live in CA 1-800-300-1506 or http://www.coveredca.com. They will answer all questions an answer quickly. If you do not live in CA you can us the website for general information. Reply I am on SS , I have Medtcare part “A”, How much is my fine going to be. Reply They say the first year wi be $95 then it will increase annually after that Reply 1% of you income or whichever is is higher Talk to your local nonprofit representatives who sign people up. If you can’t afford insurance and you live in a state that is expanding medicaid coverage, you may now be leigible for this. Reply Hi there, My family of 5 receives health insurance through my husband’s work, however his employer sent us something that says we may qualify for health care insurance through the Exchange. Is this true? We currently have a $2 K deductible and pay about $300 in monthly premiums. Because our combined income is about $40K is it likely that we would qualify for a subsidy and it would be cheaper than what his employer offers? Reply I was under the impression that if you have employer coverage , u can not get insurance from the exchange, unless his company doesn’t offer anyone in te company insurance anymore. Reply Hi Rebecca, If you have employer provided insurance you can shop in the Marketplace, however you may not get assistance. The only way you can get assistance is if your employer does not provide “affordable coverage” (employee’s share is greater than 9.5% of annual household income) and the insurance does not meet “minimum value”(employer provided coverage does not pay at least 60% of the total cost of medical services). For more answers to you specific health care questions, visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis You are in the same situation I am in. If your company offers insurance you do not qualify for a subsidy. I make 27 thousand with insurance and it will cost me $400 extra to insure my son. I can not afford this. Not Affordable!!! Reply If you have employee coverage you may be eligible if your premiums are over 9.5% of your income with certain tax deductions included. Check with a local rep on health exchange to find out. Many states have nonprofit health groups helping people figure things out. Reply I have heard that if my employer pays for my health insurance (or pays for a portion of it), the amount they pay is now considered to be compensation I am receiving, and is tax deductible? Is this correct? Reply Are premiums for long term care insurance deductible along with regular health care premiums? Also, can you deduct Part B premiums for medicare? Reply I have insurance through my employer, but can’t afford what they charge for the kids, will the $95 penalty apply towards them. I’m trying to get them back on the low cost insurance through the state (Nevada), but had problems since my daughter is only 5. I have to go back & re-apply for all the kids again. Reply I am shopping for health insurance on my state’s (WA) insurance exchange, and when the premium amount is listed, it is giving me the full price for the premium. I am currently making less than 200% of the federal poverty level, and as far as I can tell, have no other reasons that disqualify me from receiving the subsidy. So I’m wondering, how does the subsidy work? Is it automatically calculated into the cost of my premium, causing me to pay the lower amount, or is it returned with the tax return? Reply Speak to a local health exchange rep. My sister’s family qualify for a family of 4 and they make about 55,000. Reply Already have ins thru my employer so I heard if I would happen to use my medical insurance for a major claim say $12000.00 that would be paid to the hospital/ doctors etc that I may be taxed thru 1099 form . with obama health care act Reply I have never heard of this happening Reply I am owner and only employee of an S-Corp. I have been uninsured for years because of pre-existing conditions. I would like to get an individual policy for myself. What are my options?. My employer is me. Can my business get some kind of expense deduction or credit for providing me insurance? I already get a complete deduction of all my health care expenses through a health reimbursement arrangement with my company. I would rather have real insurance. What are my options in the brave new world? My income is too high for individual premium subsidies. Reply So, if we already have insurance coverage and not using the marketplace since we will not get a credit on our taxes does this me that we will also not get a credit for our medical expenses we have occurded during the year? Reply How. Large is the penalty for not having any my wife has medicare I don’t have anything now? Reply Hi Bob, If your wife already has Medicare, she will not receive a penalty. If you are required to have health insurance and don’t purchase by March 31, 2014, you will face a penalty of $95 for the year or 1% of your income if your household income is over $55,000. For additional answers to your specific health care questions visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply It’s 2.5% of income, not 1% The 1% is if you do not have insurence by , March 2014. However the amount your penalty will be will increase every year due to this “ObamaCare”. After March 2014. The penalty for not have medical insurence increases to $695 per person in your family or 2.5% of house hold total income. For single people it’s only you that play the $695 or 2.5% of yearly income… Penalty: 2014: $95.00 per individual/family member or 1% of household income, whatever is larger. 2015: $325.00 per individual/family member or 2% of houshold income, whaterver is larger. 2016: $695.00 per individual/family member or 3% of household income, whatever is larger. Reply Hi Leokham, Thank you. Here is additional information on the penalty: 2014: $95 per adult, 47.50 per uninsured child with a family maximum of $285 for the year or about 1% of your household income depending on household income. If you are single and make more than $20,000, your penalty will be 1% of your income less the tax filing threshold, if you are married and make more than $55,000 your penalty will be 1% of your income less the tax filing threshold. So if income is $21,000, it will be $21,000- 10,000= 11,000 x .01 = $110. 2015: $325 per adult, $162.50 per child, with a maximum penalty of $975 per family (or roughly two percent of total income depending on family income). 2016: $695 per adult, $347.50 per child, with a max of $2,085 per family, or about two and a half percent of total income depending on family income. For more answers to specific health care questions, visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis I’m retired and have lived abroad for the past 8 yrs. I rejected medicare at 65 because it can’t be used in a foreign country. How will ACA affect me? Thank you. Reply Hi Roger, If you live abroad, you are not required to purchase health insurance under the Affordable Care Act. For additional questions, please go to the TurboTaxAnswerXchange.com. Thank you, Lisa Greene-Lewis Reply My friend and his wife are US citizen. They have been living oversee (Vietnam) since 2008. They are 60 years old. Are they required to purchase Obama health insurance? Reply Hi John, Under the Affordable Care Act, you are not required to purchase health insurance if you live abroad. For additional questions, please go to the TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply I own a company and have private health insurance coverage for myself and my husband. Do I have to offer this to my employee’s as well? Or can we have private insurance and have them purchase it through the marketplace? Reply Hi Gayle, If you have over 50 full-time employees you will be required to offer your employees insurance, but the employer mandate has been extended to 2015. The individual mandate, however has not been extended so your uninsured employees should go through the Health Insurance Marketplace. For additional questions specific to your health care needs please visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply Great job Lisa! Reply I just purchased new insurance at about 150.00 cheaper than I had been paying for my private insurance. The coverage is so much better and it even has co-pay, prescription, etc.! The agent told said the new (more affordable) insurance was offered because of the Obama Health Care Act. I am thrilled! Will I also qualify for the tax credit? My employer has never offered insurance- so I have to buy it for myself and my children. I think Obama Care is the most wonderful thing any President has ever implemented. People may or may not like having to purchase health insurance, but I cannot imagine not having any- especially in today’s world. It is just being responsible- like having car insurance. We have needed it for a long time! Hats off to Obama and everyone who helped make it possible! Reply I’m happy you are able to have insurance and save $150. Just remember it’s because people like me had their insurance increase. Mine went from 2800 to 7100. The government doesn’t get the money out of thin air, it comes from working people like me (a single mom with 2 kids) Reply Ummm, she may be working and unable to afford insurance, but now she can. Just because you make enough money and your company offers a reasonable plan doesn’t mean that is true for everyone. My school didn’t offer teachers a plan that met the “under 9.5%” of your income clause for unmarried people. That sounds like somebody cheated you. You need help That’s all very well for you, and I agree everyone would benefit from having health insurance. But there’s no justification for the government to MANDATE it. Not only that, but the ACA even decrees what KIND of insurance you have to have. That’s just wrong. Reply Plus, most people are finding that their health insurance premiums go UP, not down, under ObamaCare; and employers are cutting full-time jobs and replacing them with part-time to avoid the employer cost of ObamaCare. It has a few good provisions, but overall it’s a disastrous law. Totally agree. Being forced to get something you want it or not is the exact opposite of freedom…and they easily could have made health care more affordable without mandating that everyone has it, but then the government wouldn’t be able to make money from charging us penalties…so yeah, not a good thing, the ACA is one of the biggest train wrecks to ever get passed in America. I went on the exchange and could choose from 33 options. 10 if I wanted a subsidy. I have never had an employer offer me 10 affordable options. Put down the kool-aid. You’ve had enough. Reply My husband and I are unemployed and have been paying for a medical risk management insurance program through our state (California). It is very expensive, but that is all we could get because of “pre-existing conditions”. We have no income, but are able to pay because of selling assets and help from family. Can this be considered as income to qualify for assisted healthcare? Reply Hi Anna, If selling your assets created a taxable event and you have to claim the income on your taxes, then you may be able to include this as income, but not the loans from your family. To qualify the Marketplace will look at wages and salaries, interest and dividends, unemployment benefits, and other sources of income plus the non-taxable portion of any social security, tax exempt interest, or any foreign income. For additional questions to your specific questions, please visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply I hope I understood your comment correctly. But here goes. You are selling your assets so you can get health insurance and they are taxing what you make out of the sale and making it manditory for you to buy insurance. That is sick. You should not have to pay taxes on the sale of your assets if you are using the money to buy insurance. What they are forcing you to do is not right. Reply 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 Can you please attach the link to the marketplace, I currently dont have the link thank you Reply Alan, You can go to http://www.healthcare.gov and get the links to your state Marketplace. You can also find links and additional answers to your specific health insurance questions on http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply If I am a senior and just have medicare, do I have to other insurance? Reply Hi Kathleen, No you do not. If you have Medicare you are covered under the law. Thank you, Lisa Greene-Lewis Reply Hi Lisa , I have 1099 income only . I will buy insurance from exchange without any financial aid . So question is health insurance premium are tax-deductible ? Reply Medical expenses are deductible if they exceed 10% of your adjusted gross income (7.5% if you are 65 or older). As a self-employed individual, you may qualify to deduct your medical insurance premiums even if you don’t itemize deductions. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply Does your age or your health status effect how much your premiums will be? Reply Hi Karen, When you purchase health insurance through the Health Insurance Marketplace lower premiums are based on your income and family size and not on your health or age unless you smoke. For more answers to your specific health insurance questions, go to TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply Im shocked at how much higher the new plans cost. I just used one of the turbotax links for the healthcare calculator and subsidies calculator – and we will qualify for a $300 tax credit if we buy $600/mo insurance. 2 years ago when I priced insurance it was only $200/mo. I think its safe to say this ACA is not at all affordable. Thank you for providing information and links, but this is certainly looking dismal. If I am covered under the Veterens Hospital do I recieve a Tax break Reply Hi Andrew, Sorry if you already covered by a health insurance plan you would not receive a tax credit. This tax credit is only available to those who purchase health insurance in the Health Insurance Marketplace. For more answers to your specific health insurance questions go to TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply thank you for being so informative and helpful. Very well done video- could you pass it along to our government please? Reply What if my agi is only 13500 and I qualify for medical can I still choose a plan that costs more Reply If I live outside of the USA, but I am a USA citizen and don’t receive a W-2 as I am paid in the local countries currency, what do I need to do to avoid a penalty? Reply Hi Jeff, People who live outside the US are not required to have medical insurance and are exempt from the penalty. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply Will I be paying for this insurance monthly or will be taken out of my check Reply So now, I have to pay taxes, pay child support, pay for othe rpeople to sit and get free health insurance, and now I have to pay for health insurance, communism. Reply What if I am married, living seperately, uninsured and my child is on CHIPS medicaid texas?? Reply Hello Lisa, I have a brother that I claim as a dependent. He has no income whatsoever. Does this make me responsible for providing him healthcare? Reply Hi Jim, If your brother is a dependent on your tax return, he is considered a member of your household. You will be responsible for the penalty if he is not covered. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply For adult children (over 26) living with parents, are the parents’ income included in household income for tax subsidy qualifacation for the adult child? Reply If the adult children are dependents on your tax return, they are members of your household and your income will be part of their application. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply Family of two; Ages: 70 & 60; Income: 45000, with half from SS. Does the SS degraded the amount of assistance of the 60 yr. Is coverage firgured after deductions? Reply You can get an estimate of your benefits and answers to your specific health insurance questions at http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply I have a 58 year old sibling who’s been unemployed for years. Doesn’t have any health insurance and doesn’t file taxes. How do I advise him? Reply Without income, he should qualify for Medicaid. He should go to the Marketplace for his state and apply there. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply If in 2014 my employer lays me off in March and my health insurance is covered up till June, will i have to pay a penalty for the other 6 months without health insurance? Reply Hi Dan, You will probably have to pay a penalty for not securing insurance after you are laid off. The exchange will be open to those who have changes in their situations such as lay-offs, births and the like. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply I do not have health insurance because I have been denied a few times because of my health now. Im low income and can’t afford anything to high. How will this affect my taxes? Reply Hi Kyle, I would try again. Part of the expansion under the Affordable Care Act is you cannot be denied coverage for a pre-existing condition. In addition, you may be eligible for Medicaid. You can check insurance eligibility by going to Healthcare.gov. Hopefully you will be able to get insurance and your taxes will not be impacted at all. Those who are required to purchase health insurance and do not by March 31, 2014, will receive a penalty of $95 per adult per year, capping out at $285 per family and about 1% of income if your income is more than $20,000. For more answers to your specific health care questions, visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply i am a disable vet and get my coverage through the veterans admin. how does it affect this Reply Hi Stephen, The Affordable Care Act will not impact you if you already have insurance. It’s only for those who are uninsured. For more answers to your specific health insurance questions, visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply Family of 2; Ages 70 and 60; Family Income: 45000; Since SS is part of the family income, wouldn’t that be penalizing the under 60’s insurance payment? Will the insurance payment be figured before or after deductions? Thanks for any clarification you can give! ! Reply In 2011, Obamacare eliminated my ability to use my health savings account to purchase over-the-counter medication. In 2012 Obamacare slashed my health savings account limit by 50%. As more Obamacare rules roll out, are further cuts to health savings accounts on the way? Reply I do not have insurance through my employer but my daughter has been covered in CHIPS for the past few years. Will she continue to recieve CHIPS or do I need to apply for her under the affordable healthcare act? Will I have the option to choose between the two for her? Reply My wife and I both have insurance offered through our employers. However, my coverage is far superior to what her employer offers, so we don’t utilize hers and I cover her on mine. I have heard this could have penalty repercussions because she isn’t utilizing her companies policy and using mine instead. Is this correct? Reply What is tax credit? Reply Thanks for this excellent info ! Reply WHAT PERCENTAGE OF COPAY’S AND CO INSURANCE CAN BE DED ON MY TAXES? Reply Hi Nanc, Co-pays and co-insurance that you pay can be deducted on your taxes if you itemize your deductions. For 2013, your medical expenses need to exceed 10% of your adjusted gross income, so if your AGI is for example $50,000 then your medical expenses need to be more than $5,000. Individuals 65 and over can still claim medical expenses over 7.5% of adjusted gross income. If you have more health insurance questions you can go to our social community at TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Thank you, Lisa Greene-Lewis Reply will i be able to put my disabled girlfriend on my insurance? she is not on SSDI,still fighting thru a lawyer for. i do claim her on my taxes. Reply Hi George, If you are able to claim her as a dependent on your taxes, you should be able to add her on your insurance. For more answers to your specific health insurance questions, go to TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply My wife is on Medicaid. She is in a nursing Home. She has Medical Insurance from her employment before she retired in 1990 from the Social Security Administration. That coverage is by the Mail Handlers Benefit Plan. The Medical Insurance covered her before she was on Medicaid and I think she still is covered. Medicare automatically put her on United Health Care coverage, as of Nov. 1, 2013. Should she drop the coverage from United Health Care? Reply Hi Lewis, That would be up to you and dependent on if they provide all of the health services your wife requires. Please visit the TurboTaxAnswerXchange.com to get more answers to your specific health insurance questions. Thank you, Lisa Greene-Lewis CPA Reply What is the penalty if I do not get health insurance? Reply Hi Cindy, If you do not get health insurance by March 31, 2014, in 2014 the penalty is $95 per adult in the household and caps at $285 per family for the year or it may be about 1% of your income if the household income is more than $20,000 if single and more than $55,000 for married couples. If you have more questions, please visit our social community at TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply Why is there a penalty? I thought the Supreme Court deemed it a tax? How do you tax something if you do not buy it? I will qualify for financial assistance to afford health care as I work full time but don’t make enough money. Seeing as I will get assistance, will that affect my taxes in the future? Should I expect less back because I’m not paying full price for health insurance? Reply Hi Arin, The amounts applied to your insurance premiums in 2014 will be reconciled on your 2015 taxes. As long as your income that determined your eligibility for the tax credit is not different in 2014, you will not see anything different on your taxes. If your income is less than expected you may receive a bigger credit when you file your 2014 taxes in 2015. If your income is more than expected, you may have to pay some of the credit back when you file in 2015. TurboTax software will be up to date and like with all tax laws will figure out the tax calculations for you so you will not have to worry about figuring this out. If you have more questions, please visit our social community at TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply What if I am native American and my health care is covered by my tribe? Reply Hi John, If you are native American and your health care is covered you don’t need to purchase health insurance and you will not receive a penalty. Thank you, Lisa Greene-Lewis Reply I opened an HSA through my local bank and have a high deductible health policy through my wife’s employer. Are the contributions that I make to the HSA deductible or just the qualifying expenditures that are paid from the account? Reply How is it that you have to buy insurance when you do not have a job and can’t find one and you do not qualify for Medicaid. Reply Hi Lisa, There are exceptions. If you make under the IRS filing requirement (about $10,000) or if the lowest priced plan is more than 8% of your household income you will not be required to purchase health insurance. Read more here https://www.healthcare.gov/exemptions/ If you have additional health care questions, please visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply I currently have insurance through my employer and they pay a portion of my premium which is a benefit. Under the Affordable Care Act will I be taxed on this amount my employer contributes? I understand the amount the employer contributes will now be on my W-2. Reply Hi Brian, No you will not pay taxes on the amount your employer contributes. That amount is an employee benefit provided by your employer. The amount your employer contributes is now reported on your W-2, but it is for reporting purposes only. Thank you, Lisa Greene-Lewis Reply If i am covered by the Veterens Hospital do i still need to purchase health insurance Reply Hi Katherine, If you are already covered, you don’t need to purchase health insurance. Thank you, Lisa Greene-Lewis Reply This is a joke it only told me about programs that have been around for years, this stuff you could already get Reply My husband is covered by Medicare; I am not eligible for Medicare coverage until 2015 and will consider using ACA exchange to purchase however, if I opt not to purchase coverage will both my husband and I face a penalty on our IRS return filed jointly? Reply Hi Christine, Your husband is already considered covered if he continues his Medicare coverage and will not receive a penalty, however you would receive a penalty if you do not purchase health insurance by March 31, 2014. You would pay your penalty when you file your 2014 taxes in 2015. If you have more questions, you can go to our social community at TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply Thank you, Lisa. Clear answer to my vague question! Do we need to save all our receipts if we have an HSA? We also use it for optical and dental, as well as prescriptions. All medical insurance gap items are paid from that account. I fear a lost 11mo. receipt could cause a problem Reply What about if I haven’t worked in this year and I have been a fulltime student in college? My husband has worked parttime and is a fulltime student at the same college I attend. We have earnings of 2,500 for this year for the YTD and well, we don’t have insurance of any kind for our financial struggle. Our kids are covered by Medicaid for the low income we have and well I have a worry about this since I have always had a YTD of 30,000 or more in my joint tax return. This year I am so sad to say this but it is not something to wish upon anyone. If anyone can let me know what penalty I am going to be facing it would be greatly appreciated. Thanks. Reply I am covered by the VA, will I need any other insurance? Reply My parents are on Medicare and do not have a supplement insurance. Will they be required to purchase insurance? Reply Does Turbo Tax know when individuals will begin being taxed on the overall value of their healthcare, employer sponsored or otherwise? Reply I will pay a penalty because this was a free country and should not have to choose between bills and that. Reply If you don’t have insurance and don’t check your exchange, you may be sorry to hear about all the insured people who are paying $70 monthly premiums in states like Washington where we worked hard to set up a great exchange with lots of options. Reply If I already pay for my own health insurance, will I be able to get a tax credit on my 2014 taxes? Thanks, Sharon Reply As a self-employed individual, will the health insurance still be deductible in the same way as it is now or will that change? Reply Is it true all real estate sales beginning in 2014 will be subject to a 3.8% tax? Is this based on the profit, like a capital gain or on the gross sales price. Either way, how did this get into health care? The real estate owners are already hammered paying for public education. Thanks, Scott Reply I want to get coverage, but have not been able to afford it. If I find that I still can’t afford it under the new system, how do I avoid being penalized in my taxes? Reply Check the exchange before you worry. Also, if your state did not proactively set up a health exchange a while back, call your senators and rep and complain. Prices are very competetive for even very low income, older people who are middle income or below. Reply I am an expat living full time in Mexico. I have my health insurance through the Mexican government called Seguro Social. Does this type of insurance meet the new requirements or will I be subject to penalties or fines? Reply Citizens living outside the US are not subject to penalties. The Marketplace only carries insurance for those living in the US and for medical expenses incurred in the US. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply I am covered under the State retirement plan, but the premiums cost me more than my monthly benefit. Am I eligible for a subsidy? Alternately, am I eligible to shop in the Marketplace for new, less expensive coverage? Reply Hi TTL I’m thinking about NOT signing up for ACA! what is my penalty for income of $26,750 per year? Gary B. Reply You should sign up…if you live in a state with a healthy exchange, you may find affordable options. You will likely qualify for a subsidy. What if I am getting married 4/26/14 do I still have to get the insurance? Reply Hi Joy, If you are uninsured and don’t meet exemption requirements, you are required to have health insurance by 3/31/2014. For more answers to your specific health care questions visit http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply If I already have insurance and will not be purchasing through the exchange, will I be able to get a tax credit based on my income? Family of 3 making 55K. Thanks, Jereom Reply Hi Jerome, Unfortunatley, the tax credit is only for those who are eligible and purchase insurance through the Health Insurance Marketplace. If your insurance is self provided and not provided by an employer you can check your options and purchase health insurance through the marketplace and you may be eligible for the tax credit. Thank you, Lisa Greene-Lewis Reply Leave a ReplyCancel reply Browse Related Articles Health Care The Affordable Care Act Timeline for Individuals and Families [Infographic] Health Care What is Obamacare? Health Care Healthcare Reform – Glossary: Key Terms Explained Health Care White House Delays Affordable Care Act Employer Mandate Until 2015 Health Care Health Reform Law Has New Implications for Consumers and Their Taxes Health Care What is a Health Care Reform Tax Penalty [Calculator]? Health Care Health Care Reform Timeline: Important Dates You Need to Remember Health Care Health Insurance Marketplace Opens Today! 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hello!,I love your writing very a lot! percentage we be in contact extra approximately your article on AOL? I require a specialist in this house to solve my problem. May be that’s you! Taking a look forward to look you. Reply
We had to send my grandson to a school camp for troubled boys. He left in March, 2015 and will be there past Dec. The insurance only took care of part of it. Can we deduct the rest? The gas to take him and back home? We live in IN and we took him to UT Reply
I purchased health insurance through the Marketplace. Can I still file a Health Coverage Exemption because I belong to an Federally Recognized Indian Tribe? Reply
My sister and husband received ACA but now the husband refuses to file together because he thinks he can get a better refund on his own. He doesn’t understand that he can’t do that. Will my sister have to pay all the ACA subsidy? Reply
From my experience, filing separate tax returns does not result in lower taxes, especially if they live in a community property state. He can certainly choose to file his tax return separately. If he does so, he will have to repay any subsidy he received. Your sister will only have to repay her share of the subsidy. If they have dependents, the individual claiming the dependent will repay that subsidy. Reply
When my son was doing my taxes he put in my I insurance info and it said my household income changed or the household number changed but they didn’t . It also said they gave me to much money for my insurance. I don’t know what to do Reply
My return was filed without line 61 being checked off. I don’t see a penalty being assessed. I tried preparing an amendment and none of the numbers for taxes owed/refund due changed. Is this correct? does the IRS assess the penalty separately from my 1040 filing? Should my 1040 has assessed a penalty? And if so, where would I see that? Thanks Reply
Hi! I used 1040 tax and checked box 38A for full coverage but I remembered that I only have 11 months health coverage for 2014 (no coverage for November only) and my husband only started his medical health insurance through covered CA on March to Dec 2014. Do I need to prepare 1040x to correct the information? Thanks! Reply
Hi, My wife entered US in the last week of December 2014. Shes is a non resident but I’m a resident for tax purposes. She doesn’t have any income for the year 2014. I am filing the tax as Married filing jointly. She doesn’t have any coverage for 2014 as she was practically here for 3 days in the year but has a coverage from Jan 1st 2015. Is she exempted. If so, how do I file for an exemption? Reply
Atun, Go to the Health Insurance tab of the product, choose We were partially covered. On the next screen, you should see a series of check boxes for each person on your return. Mark the appropriate boxes, leaving all the boxes for your wife blank. On the next screen, scroll down to Wasn’t required to get insurance, and check the box for spent 330 days or more outside U.S., or Resident of foreign country or U.S. territory., whichever seems most appropriate for your situation. After you check the box, choose This only applied to, and then select your spouse from the drop down list. Answer the rest of the questions as they come up until you get to the Other tax situations screen and you will be done with all the issues related to health insurance. Thank you, Mary Ellen Reply
Mary Ellen, I need to change my schedule c health care insurance amount on turbo tax 2014 home and business. The easy step procedure tells me to go back to schedule C, but when I do, I have to override the amount in item 15 to make the change. Isn’t there some place in the step by step process I can take it naturally without need for an override? Pat Reply
Pat, If you have already filed your tax return, you will need to prepare an amended return. Otherwise, you should be able to just change the original entry. You should go to your business entry point (Business Income and Expenses > Select [Edit] for your business > Select [Update] for Other Common Business Expenses > Select [Update] for Insurance Payments > Select [Update] for Health Insurance Premiums > Enter the correct amount on this screen. It will flow to the Self-Employed Health Insurance deduction on Form 1040, Page 1, Line 29. Reply
Mary Ellen, Thankfully, I haven’t filed yet. Thank you for this very helpful information. The trick was finding that the self employment insurance amount was under “Other Common Business Expenses” since it showed $0 until I hit the tab, and it then brought up Insurance. You saved the day! Best Regards, Pat
Hi Susan, No, since you were uninsured for less than 3 months you would automatically be exempt through your tax return. You don’t have to file for an exemption. Thank you, Lisa Greene-Lewis Reply
I had to call marketplace a dozen times to get tax form? I was on call for an hour and lady tells me I should never have gotten a subsidies bc I made too little and she sent something to medicad and told me I had to pay back the $6000 to its now? I told her I reciev Workcomp pay and called marketplace about that and the 2 month job I took before 2 surgeries.She said that Workcomp (TYD) doesn’t count! I Believe it was about $10500 I made between 1 month of unemployment, 2 month job & now Workcomp pay that ends next month! How am I to pay it all back and do they take my student loan money too? I go to college part time to try and get a degree. I’m now 57 years old. Thanks Reply
I am a stay at home mom with two uninsured children. My boyfriend supports our family but he can’t cover the children under his insurance since we aren’t married. My ex husband was ordered to provide insurance for the kids but he continued to give me the run around for months. Making me believe he had them under his insurance and then changing jobs and phone numbers. Now that I need to file my taxes I was wanting to know if I will be penalized. Reply
Felecia, The penalty will be assessed against whomever claims the children as dependents. If your boyfriend is claiming you and the children as dependents on his tax return, he will be penalized if you should have been covered. If you are filing a tax return and claiming the children, you will receive the penalties. If your ex-husband is claiming the children, he will be penalized. The penalty will be based on income. The minimum penalty for you is $95 and for each child is $47.50. Reply
I am self employed. I have always paid for my own health insurance. I was able to keep my insurance until the end of August 2014. I enrolled in the Market place at that time. Do I still take all my premiums for the whole year for “self-employed health insurance” on line 29 of the 1040? Reply
I must include non taxable income from property settlement (divorce) to my tax reurn. Where do I show this? Reply
My wife turn 65 in July 2014, She had Private Health Insurance for the first 6 months and has a 1099 that reflects half the year coverage. She applied and received Medicare from July to December of 2014. How do I enter my wife’s half year with private health insurance and the other half covered by Medicare with Turbo Tax. I have been unable to have Turbo Tax accept my entry allow me to file via E File. Reply
I got my 401k money out in 2014 and paid the 20% taxes. my wife is on Obama care insurance at a lower rate but the 401k money made our earned amount for her to get the reduced rate to high for the amount she had been paying so when we filed we had to pay the full rate that was taken out of what our tax return would have been. Reply
My parents are retired and do not file a tax return because their income falls below the minimum amount. Do they need to file a return for 2014 so that they can check the Health Care box to show that they have coverage? Do they need to complete any other parts of the 1040EZ – Income, Payments, Credits and Tax??? besides their identification part and signature part? Thanks. Reply
what is the hold up on taxes that has already been filed concerning the obama health care. This year is the first year that i had to filed it on my taxes and now thaey say it is a hold up on many people tax refund beacause of the health care act can you clear this up for me please. Reply
My husband and I have insurance through Obama Care. We are both employed but i slso have a side business (which makes me self-employed). My question is this…..can i deduct the premiums we made to purchase the insurance on my 2014 taxes? Thank you! Reply
Lisa, Can anyone explain why the exemption application form won’t create after all data is entered in turbotax? Many people (including myself) have posted this issue on the site, but none of the questions have been answered, after several weeks now. Reply
if granted exemption can i go ahead and tick the full coverage box on line 61? As said before my husband has full coverage and I have exemption based on the fact that I had no coverage in 2014 for the months leading to enrollment and I enrolled before May 2014. Reply
My husband has Medicare benefits and so did not have to apply in the affordable healthcare plan. I am under 65 and had no coverage . In 2014, I applied for a health care plan in the Marketplace and paid the first premium in April so my insurance started May 1, 2014. WHen filing taxes, I was asked to pay a penalty 0f $413. But I checked the Affordable Care Act and found that since I was without coverage in 2014 only in the months prior to enrolling in coverage that was effective before May 2014, I could apply for an exemption and I had to complete part III in form 8965. My accountant submitted the form but I still have to pay the $431. Why is that ? I do not know whether I am missing some thing somewhere. Reply
Hi Pearl, Yes you can qualify for an exemption if you are uninsured for under 3 consecutive months. Since the deadline for 2014 enrollment was March 31, 2014 it looks like you should get the exemption. TurboTax automatically fills out the forms for you and gives you the exemption if you are eligible when you prepare your taxes with TurboTax. Here’s more information on exemptions https://blog.turbotax.intuit.com/2014/12/30/6-top-affordable-care-act-exemptions/ Thank you, Lisa Greene-Lewis Reply
I signed up for health insurance through the marketplace in March of 2014 because with my income I qualified for a tax credit to help cover the cost. In October 2014 I cancelled through the marketplace because I secured employment with my a new employer that provided health insurance. In late November and early December I received two bonuses from a company that had laid me off in 2013 and they were now completely closed (reason we received bonuses). I was going through process of filing my income tax and completed the 1095 form for the tax credit and my refund went from 2600 to 300 because now the government wants me to pay back the credit I received. I’m confused? How could they expect me to pay back the credit? When I was getting the credit I wasn’t making enough money to pay the full premium. When I got a better job, I immediately cancelled the marketplace coverage because my employer offered me coverage. And the bonus came after I had cancelled the coverage through the marketplace. Reply
Jlynn, The premium tax credit is based on annual income, not monthly income, so the credit you received based on your income before the new job and the bonuses is being recalculated. Mary Ellen Reply
I was off work last year for 6 weeks and had to pay for my own healthcare out of my pocket and was wondering if that would be tax deductible ? Reply
I want to claim my friend as a dependent. He has no income and no health insurance. I have health insurance thru my employer, do I have to pay a penalty because he did not have health insurance or would he qualify for a exemption because of the income threshold and if so how do I report that on my tax return? Reply
Sue, If you claim your friend as a dependent, he is considered a member of your household and you would be responsible for the penalty if he is not insured and does not qualify for an exemption. He would need to include your income in applying for coverage on the exchange. Mary Ellen Reply
I support an adult child who does not live with me. They do not have insurance. Will this affect me If I claim them on my taxes? Reply
Jen Bo, If you claim someone as a dependent on your tax return, they are a member of your household for purposes of the ADA and you would receive the penalty if a member of your household is not covered by insurance. Mary Ellen Reply
My husband and I are separated and have been for many years. However; he is military and the children and I are covered under tricare. Are there any forms that I need for filing my taxes for healthcare. How does affect our taxes as we both file head of household? (We were advised that was legal as we both maintain different households and have only remained married for the health care.) Reply
As long as you do not live together, and you each provide the home for a qualifying child, you can both file as head of household, and not married filing separately. You will only need to provide the information that you and your dependents are covered by employer-provided insurance. Reply
Does a dependent need to claim the market place tax credit when filing a tax return? Or just the head of household? Thank you. Reply
Beck, The head of household, or the person claiming the dependent, is the one required to ensure that all the members of their household are covered and they will claim the premium tax credit on their return when they file. The dependent will not need to report anything on their separately filed tax return. Reply
I signed up with Healthcare.gov at the beginning, Alaska does not have a state exchange. We are self-employed (wife and myself, no one else in household), run a business that is intertwined with our personal taxes. Our income on paper varies a lot year to year, depending upon depreciation and business projects/write-offs, and has gone above and below the $77,000 cut-off for tax credits for a couple in Alaska. For upcoming year, we need to provide income varification, and I don’t have any of what is listed by the exchange as documentation they accept. What’s the best way/best paperwork to submit to show income, but also indicate that upcoming year may vary a lot? We do not collect paychecks, just work the business. Also, if we went over for 2014, will we need to pay all of the credits back? If so, that makes our health insurance back to unaffordable, the cost would be 25% of our net income. Reply
Jon, You can use your income tax return to verify your income, although it doesn’t show the monthly fluctuations. And you could add a schedule of your self-employment income for the last several years to show the annual fluctuation. If your income exceeds 400% of the poverty level for your family and state, you will have to repay any advance premium tax credit you received. You can use the cost of the insurance exceeding 8% of your income to request an exemption for 2015. Mary Ellen Reply
If you as a married filing jointly made 1900 but your spouse made much more, do you have to add your income to the total. I always assumed that if it was under 3000-5000 it did not need to be added Reply
Theresaa, All income, no matter how small, is supposed to be reported unless it meets certain tax rules for being tax free, like insurance pay-outs, or some social security benefits. Your $1,900 of income should be reported on your joint tax return and will be considered as part of your household income in determining eligibility for premium tax credits. Mary Ellen Reply
Mike, The amount of time you waited for the disability settlement will not have an impact on whether or not it is taxable. What will impact it is who paid it. If you were paid by an insurance policy you purchased, it would be tax free. If it is Social Security Disability, it is treated just like Social Security Retirement benefits and may be taxable depending on the total income from all sources. Workers Compensation disability payments are usually tax free, as are military retirement disability payments. If you receive a 1099 or W-2 reporting the disability income, the most likely reason is that it is taxable.
Under the state section it offers an area on turbo tax where you can enter medical insurance premiums…see pasted example….Enter Any Health Insurance Premiums Enter the total, if any, you paid in 2014 for all qualified long-term care insurance premiums and health insurance premiums. Do not include self-employed health insurance premiums or Medicare premiums. My question is I have marketplace insurance because I am not married and my employer does not offer insurance. I took a monthly advance payment, but still had to pay 709.56 out of pocket to pay for the premium? Do I put this 709.56 in the state section or not? I noticed in the federal portion is said do not list marketplace info under the medical expenses section. Thank you for your time. Reply
Beth, Yes, you would put your out of pocket premium in the state section. The marketplace info they mention in the federal portion is who your provider is and information of that nature, not the premiums paid. Mary Ellen Reply
What happens if filing married jointly and the main income earner has no insurance but the second and children do? We can’t file seperate because we won’t get the child tax credit if seperate. Reply
Hi Jeni, There will be a penalty on the one person without insurance, but not on the others, unless there is an exemption for the one without insurance. TurboTax will help you through all the appropriate forms and questions to calculate the right amount of penalty. Mary Ellen Reply
My husband and i had health insurance together all last year . We received the subsidy from the affordable care act. We normally file seperate. How can we file”besides joint”, that neither of us will be penalized. Reply
Evely, If you were covered all year, you won’t have penalties for non-coverage. If you live together all year, then filing jointly is the only way to qualify for subsidies. If you are not going to file a joint return, you should not request advance premium tax credits in the future. Mary Ellen Reply
And what happens when the Supreme Court later this year rules that the wording of the law really is the wording of the law and disallows the subsidies in the 30+ states that did not set up their own exchanges ?
i have a live-in lady friend who has no income and is completely dependent on me. she has several mental conditions that make it impossible to work. she has many outstanding medical bills that she has no means to pay. in the stste of tn. she has been denied any coverage thru medicaid. i also pay for her doctors. office visits and her medications. she filed for disability in october 2013 with ssa and has been denied several times. her claim is under appeal and she is waiting on a hearing with an ssa judge i also have two adult sons that are not working and are completely dependent on me. i’m 74 and i get my ssa benefits and also have to work full time to make ends meet. i have medicare and a supplemental policy for my self, no coverage thru my employer. i will be claiming them all as dependents, as they were dependent on me the entire year. when i file my return will i be taxed for the fact that they have no health coverage? Reply
John, You are responsible for seeing that everyone in your household is covered by insurance, and by claiming your sons and lady friend a dependents, they are part of your household. You will be penalized for anyone who doesn’t have coverage when you file your tax return, unless they qualify for one or more of the exclusions. You can learn more about the exclusions at https://blog.turbotax.intuit.com/2014/06/03/who-qualifies-for-a-penalty-exemption-under-the-affordable-care-act/ Mary Ellen Reply
John, You will be assessed a penalty for every member of your household who does not have medical insurance or does not qualify for an exemption. For more information about exemptions – https://blog.turbotax.intuit.com/2014/06/03/who-qualifies-for-a-penalty-exemption-under-the-affordable-care-act/ Mary Ellen Reply
I had health insurance as of may 1rst which I was told I would be good and not have to pay any penalties’. I recently tried doing my taxes online at turbo tax. When I entered my health care coverage. It took $500 + from my refund therefore I did not file them. I am really thinking about doing my taxes elsewhere because I cant take that big of a hit. Why is it penalizing me? Reply
Mark, Be sure you go through the exemptions to the penalty section. You could have a small penalty. Are you having to repay some of the advanced premium credit because your income is higher than you projected when you applied for the credit last year? Mary Ellen Reply
The ACA law says the penalty for no insurance can only be taken from excess withholding. I will have no excess withholding. Will I still owe and have to pay the penalty? Reply
Greg, Although they cannot enforce the collection of the penalty, it will remain as a liability on your account, and in the event you ever have a refund due in the future, not just from withholding, but from estimated tax payments as well, they will apply that refund to the liability. Reply
how will 1099-R forms affect the subsidy? I may be facing a situation to cover my children’s education costs, healthcare premiums, and save my home from potential foreclosure and will need to withdraw from my 401k to stay afloat. will that count as income and cause even more penalties and fines by the government just to keep my head above water next year (2015)? Reply
In my experience, any monies received from a 401k is counted towards your gross income and will be taxed. Depending on the servicer, you may opt to have taxes taken out when you cash out. The servicer will send you a form to file with your taxes that indicates how much has been taken out and any taxes withheld. If you use turbo tax, it is easy to add all the information in and calculate everything accurately. I had to do this in 2013. (401k’s are not taxed when contributed, but are taxed when cashed out). Reply
I am married and covered by insurance at work. My husband has no income and does not have insurance. If he gets the so-called affordable care, does my income count as his? Reply
If I have medical insurance but I do not have dental insurance (pediatric dental) will I be subject to a penalty when I file my taxes for not having pediatric dental? Thanks Reply
My employer only pays 50% of the group premium. In lieu of a salary increase they want to add the additional 50% to my gross wages and then deduct it pre tax to pay my share. What are the advantages to me rather than them just paying the 100% and not run it thru my payroll check. Reply
Hi Helen, It sounds to me as though your employer currently pays 50% of your premium and you pay the remaining 50% as a payroll deduction. So if you are making $500/week and your share of the premium is $25/week, you have all your payroll taxes withheld on $500, and then the $25 premium is deducted. If your employer wants to add the additional 50% as wages and then deduct pre-tax, your gross wages will be $525, your premium will be deducted, then your payroll taxes withheld will still be based on $500 wages. Under your current plan, if the taxes are $50, you would take home $425. Under the new plan, you would take home $450. Thank you, Mary Ellen Reply
Hi Turbo TaxLisa, Is the amount that I receive from the tax credit subsidy considered Taxable Income in the state of PA.? Thank you, Geoff Reply
I have posted numerous questions over the last couple of months to which I have received no answers. I have no idea whether the folks at TurboTax monitor this blog or not. If so, then they are just very picky about what they want to answer.
We receive the affordable health care tax credit for low income earners. If we file our taxes late what effect will this have on us receiving the tax credit? Reply
Hi Gideon, If you receive an advance premium tax credit or are eligible to claim the tax credit on your taxes that you received in 2014 on your 2015 taxes then you would have to file your taxes. In addition, anyone that has a tax filing requirement for example income over $10,000 if single and $20,000 if married filing jointly has to file their taxes in order to receive the credit. Thank you, Lisa Greene-Lewis Reply
If you receive a tax credit that pays for your health ins each month under obamacare does that mean I will no longer receive my tax return ? Reply
Janice, When you prepare your 2014 tax return next year, you will calculate the exact amount of subsidy you are entitled to. If the subsidy you actually applied to your premiums is more than the subsidy calculated, the difference can reduce your refund. If your calculated subsidy is more than you received, you will increase your refund. Reply
Hello. I just do not understand. I am self employed and for 2014 I average a little over 14,000 for my business due to the fact that I did not open and operate until the 4th or th month lastyear. I recently signed up on the market place and I was approved for a tax credit of $239.oo for a family of 3. The qualification for a family of 3 is 19,000 and above. Will I be penalized if I make less than 19,ooo.
For tax year 2014, if I am self employed and purchase a policy through the marketplace paying 100% of the premium, can I deducted the premium as an expense on my taxes in 2014? Currently in 2013 if I am paying 100% of my premiums and show a profit, these premiums are deductible to reduce my income. I can not find anything that answers this question for me. Reply
Hi Michelle, The Self-employed health insurance deduction is still available. If you receive a subsidy from the marketplace, you will need to reduce your deduction by the amount of the subsidy. Reply
My only income is from social security disability but I have only been on it for one year and can’t get medicare until I have been on ssd for two years . The ssd is not taxable income .I make $1200a month on ssd and can’t afford to pay the premium on the healthcare and still pay my bills and utilities .the healthcare marketplace said I could not get a tax credit discount ,I make just over the limit for medicaid in my state of tn.This affordble healthcare is not affordable at all. Reply
Hello, My wife and I now receive medical benefits under the affordable care act. My question is that we cannot file tax returns “married filing jointly”, and must file “married filing separately” due to the fact that my refund is always kept by the federal government due to a large legal debt that I incurred long before our marriage. Does the ACA demand that we file jointly in CA, or can we still file “married filing separately” without losing the medical benefits? I am not concerned with paying higher taxes, but I am very concerned about affecting my wife financially. I don’t want to file an innocent spouse claim after the fact, as I just don’t want to effect her with this. Reply
File 8379 Injured spouse with your federal tax return and you can file together and it wont affect her portion at all. Reply
Chris, If you file Married, Filing Separately, you will not quality for any of the premium tax credits available. Mary Ellen Reply
File the injured spouse at the same time as your taxes. You don’t have to wait after the fact. Although CA will still take a portion but not all of what you owe because its a state that does that. I cant remember exactly why or what it officially is called. But it is what happened to us last year. Reply
My husband and I are at about 300% poverty level. I m not insured, my husband will start medicare from june. Our adult son is unemployed, files his own tax return, and is depended on us, and is covered under medicaid. If we include him as dependent on our tax return, will he loose his medicaid coverage ? And if we include him in our tax return, it will bring our income below 250%, will i be eligble for medicaid or any other subsidy ? Thank you. Reply
I make $32,000 a year. After taxes it figures out to about $1900 a month. By the time I pay rent, food, car insurance, water, electric, gas heat, gas car…. I barely have $250 left over. How am I supposed to pay $325 a month for insurance, what happens if my car breaks down. I’m being asked to pay over 15% of my take home pay for insurance, that has a hefty $2500 I have to pay before the insurance actually starts paying for anything. Thats all add’s up to nearly 25% of my take home pay. How is this considered Affordable? I see who its affordable for, not me thats for sure. I suppose Obama wants me to eat Ramen for breakfast lunch dinner. Tell the truth Lisa, or are you afraid to tell people the real truth and the real math. Reply
Hi, my wife and I are both covered under insurance by her employer. However her’s is free and mine is $100 per pay period. I’m retired and and should receive free medical, but why does the IRS require us to file married, when in fact we could file separately. When I ran my numbers through the Gov site, it said I was eligble for a $8000 a year credit. Our current insurance is 70/30 and $2500 out of pocket. This insurance is in case you get ill or something major, not for basic health, there is no copay allowed. Isn’t that just a little bit criminal. Why won’t the Government post the numbers on what people will be paying based on their estimated incomes so they can see whether to deny Insurance from their company when they can get a much better deal from the Afforadable Plans. Reply
Can an employer cover medical insurance on an employees child every year if the employee is divorced and only gets to claim the child as a dependent every other year? Reply
if an employee pays 50% of medical insurance of an employees child (dependent) and the employee is divorced and claims the child as a dependent every other year, can the employee still cover 50% of the childs medical insurance on the years the employee does not claim the child on their income tax as a deduction? Reply
Hi Lena, Yes the fact that the employer covers 50% of a child’s medical expenses does not relate to the employee claiming their child on their taxes every other year. It is still their child and can qualify to be covered on the insurance plan. Thank you, Lisa Greene-Lewis Reply
I have insurance under the Marketplace and pay $81.00 per month. I was informed by my tax person that my refund is being help up because the IRS will be taking some of my refund to offset the additional cost of the insurance., The total cost of the insurance I have is $160 a month but I only pay $81.00. Have you heard of anyone else going through this Reply
My boss wants to reimburse me for the health insurance costs. I have gone to healthcare.gov and submitted the costs to him and he wants me to pay and he will reimburse. Wouldn’t this be considered income and be taxable to me? Reply
Kim, As long as your employer has a Section 105 plan in place, the premium reimbursement will be deductible to him and not taxable to you. Setting up and maintaining any benefit plan can be complex and he may want to consult with his accountant or payroll service for the requirements. Mary Ellen Reply
can therealkim still get premium tax credits from ACA? sounds like that would be too good of a deal? employer writes it off, not income to employee, and employee can get tax credit for health care premiums??
I posted a question on 3/10/14 but I do not see mine and any questions here after 2/28/14. Please advise when the answer will be available. Thank you Reply
I am unemployed and cannot afford health insurance. If i am put onto my parents taxes, Will my penalty of not having health insurance come out of their income? Reply
We claim my parents as dependents, they are 73 & 76, green card holders ( not citizens), no income at all or Medicaid. I am unemployed now and cannot afford to buy insurance for both of them and cannot push my husband to buy insurance for my pants ( he already supports them and me now, since I am not receiving unemployment benefits). I am covered by my husband’s company insurance. Will we get fine if parents do not have coverage? Is there any subsidy for them in our case? What if we will not claim them as dependents in 2015- any penalties for them for not to be insured? They have NO income! What is the solution??? Reply
If they are claimed on your tax return as dependents, you are required to see that they have insurance or pay the penalty. The penalty for each uninsured individual will be $95 or 1% of income, whichever is greater. In determining if they qualify for a subsidy, they will have to use your husband’s income. If they are not your dependents, they may qualify for assistance in obtaining insurance. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com. Mary Ellen Reply
Can me and my husband file our taxes separately for 2013 or should it be filed jointly? Obamacare needs married couples to file jointly to receive the benefits. Does it include 2013 tax return ? Reply
Megan, You can file jointly or separately, whichever is the right filing status for your personal situation. When it comes time to determine if you or your husband are entitled to a subsidy for health insurance premiums, you will need to use your household income, which will include both of your incomes, even if you choose to file separate returns. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com. Mary Ellen Reply
As Mary Ellen indicates, whichever way you and your husband file, you will be using your household income as long as you are married. Divorced and co-habitating, neither you nor your ex would have a spouse and so filing separately, you each would use your individual incomes. As long as you are under the 400% of the Fed Poverty Line, the latter course is the way to maximize your subsidies. Reply
My employer recorded the amount we put into our healthcare savings account (HSA) on my W-2. They’ve never done that before. It used to only be reported but not as income. Now it is code W. It’s pre-tax dollars but now it’s being taxed. What changed in the way that my HSA is reported to the government? Reply
Jeff, According to IRS Pub 969, “An HSA may receive contributions from an eligible individual or any other person, including an employer or a family member, on behalf of an eligible individual. Contributions, other than employer contributions, are deductible on the eligible individual’s return whether or not the individual itemizes deductions. Employer contributions are not included in income. Distributions from an HSA that are used to pay qualified medical expenses are not taxed.” Even though you are seeing the amount of the contribution on your W-2, that does not mean it is being included in your taxable income. The amount is used to determine the amount of deduction you can receive for HSA contributions you make on your own behalf. It should be entered on Form 8889, Part 1, Line 9. TurboTax will take care of that for you. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com. Mary Ellen Reply
Reading several comments here, contrary to my belief, it seems that a married couple, that always filed as “Married Filing Jointly”, cant simply choose to file federal tax returns as “Married Filing Separately” starting from 2014 — just so that a low earning spouse can get maximum/or greater tax credits for health insurance premiums thru the new marketplace system. is that true ? Expert advice on this will be sincerely appreciated. Thanks. Specifically, retired husband, who has Medicare coverage, has 60,000 in income from social security, interest & mainly from IRA draw downs/distributions. Wife who has no health insurance coverage at present, has a small variable business income & interest income in her name — both collectively totalling say about $ 12,000. If wife files her tax returns separately, she can get the maximum/or much larger tax subsidy for health insurance coverage. Is that permissible ? Or for subsidy determination purposes the joint incomes of husband & wife will/must be considered in lieu of just the wife’s income since she filed as a single person ? Thanks agin for the wisdom. Reply
Jeeti, For purposes of the subsidy for health care, your household income is used. That will be the income of you and your spouse, even if you use the Married, filing separately status when you file your return. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com. Thank you, Mary Ellen Reply
With you on Medicare, your wife with your combined household income (as Mary Ellen has explained) would put you two over the 400% of the Fed Poverty Line and so allow your wife zero subsidy to pay for health insurance through your exchange. In applying, she would be obliged to use your combined household income because you are her “spouse.” Now, if you divorced and there was no longer a spousal relationship, she could apply on her own. But with only about $12K in income, she would be assigned to Medicaid. Now, Medicare is gradually becoming Medicaid Plus, and so the both of you could find yourselves in the same doctor’s office with essentially the same “healthcare” going forward. But if that is not desired, then after a divorce, you would need to get some of your income-producing assets into her name to raise her income above the 133% of the Fed Poverty Line so that she could get a subsidy to bring down the high cost of a healthcare plan better than Medicaid. Reply
My son who will turn 19 mid march will lose insurance under my husband 3/31/14. He will not be claimed on our tax return for 2014 because he is not a full time student. Husbands employer wont allow us to pick him up on COBRA with the rest of the family when we start COBRA 4/1/14. He would have to purchase his own COBRA plan at the same price they are charging us (approx 16K for the year). I applied on marketplace for him and put he was filing his own return and couldnt be claimed as a dependent. It then asked if he lived with parents and other brother/sisters then proceeded to ask all the income for everyone. He is not working right now so he has no income. The results came back he was eligible to purchase through marketplace but was not eligible for subsidies. Total family income is below 50K. My question, should he have applied on his own or should i have applied and asked for coverage under my application? I’ve called the marketplace and they said they can’t give me how the income numbers were run just what the results are. Does anyone have any suggestions for this scenario or have similar situation? Why should he have to include our income if he isn’t our dependent? Reply
Hi, I’m so confused, I can’t find a straight up answer to whether or not I will get my refund without being covered yet. I can’t afford to start paying for healthcare WITHOUT my refund, so it’s a catch22. So, without healthcare, I should be expecting my refund in my bank account soon still, correct? I have been tracking my refund for over a week, over half the people who filed on my same day have received theirs, and now there isn’t an option to track it which leads me to believe I should be receiving it, yet it’s not in my bank account right now, but there’s still a button for “get coverage.” Is choosing a healthplan required before receiving my refund. I’ll pay the fine if I have to, I just need my refund! Thank you. Reply
Matt, There is no penalty to be paid for 2013. It starts with 2014. The IRS states that 90% of all refunds were received within 21 days last year, and they expect the same results this year. Your refund should be deposited to your bank account within about 3 weeks of filing your tax return. You need to be covered by March 31 of 2014 to avoid any penalties when you file your tax return in 2015. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Mary Ellen Reply
What is the penalty for not having insurance in the following case. 2 Adults and 3 Kids. Only Husband has insurance (thru company) Wife and kids does not (company provides but declined) Only Husband earns – 80k A friend said only penalty is $95 for wife. As per my reading, it is 1% of family income or $95 per adult plus 50% for kids whichever is greater. Here since wife does not have income does it matter. So the final penalty is 800 or 237.5 (95+47.5+47.5+47.5) ? Reply
Just make sure you have no refund due when filing next year. The Unaffordable Uncaring Act provides no legal recourse for the IRS to collect any penalty from you except by withholding any refunds due. Reply
Joseph, Your penalty could be as much as $2,000. 1% of 80K for spouse and .5% of 80K for each child, a total of 2.5% of your income. The insurance credits are based on the household income, not just the income of the uncovered individual. Mary Ellen Reply
Now that the White House has effectively killed the individual mandate, just claim an unaffordability or hardship exemption and forget the penalties. Reply
In the year 2013, I got health insurance through my job, and they stated they will give health insurance to the dependent (spouse) but it was delayed finally she covered in the month of Jan 2014. She had DNC (dilation and curettage.) due to miscarriage in the year 2013, the medical expenses around $15000 were paid by myself as she did not have insurance. Our Household income is $60,000. Are these Medical expenses Tax deductible? What will my penalty be (now she has Insurance)? Thanks in advance Reply
Hi Chetan, The expenses you paid for your wife’s DNC are deductible medical expenses. You should include them in your itemized deductions. You should not have any penalties for not having insurance for you wife in 2013. The requirement started in 2014. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Mary Ellen Reply
I think that I am in a catch 22 situation. My wife and I have an income slightly above $50k but our MAGI will come in around -$500,000 carried forward from my past business losses. Does this mean that although I can apply though the market place I will not get a tax credit? It is a truly ridiculous situation as I can not afford $1100 per month that was quoted. Only other option that I can see is to get a divorce that way at least my wife will be covered. Thanks Reply
These are presumably non-passive losses, and the carry forward and recognition provisions of the IRS Code may give you little leeway with the result you indicate for your 2013 MAGI. The divorce option, such that you and your wife could file separately, is one way to improve your situation. Staying married, with a negative MAGI, you both would presumably be placed within the Medicaid system. Divorced, with your wife declaring enough of the $50K income to get her above the 133% of Fed poverty line, she could presumably qualify for a subsidized health insurance plan, leaving you to find out how wonderful Medicaid is. Good luck to us all. Reply
I had health insurance all the way up until the end of January 2014. I am getting estimates on new health insurance but don’t currently have any. If I do my taxes now, without having any health insurance, will there be a penalty or will it affect my refund? Reply
Hi Dustin, There is no penalty calculation with your 2013 taxes. For 2014, you have the possibility of penalties if you are without insurance for more than three months of the year. That penalty will be calculated when you file your 2014 taxes in 2015. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Mary Ellen Reply
My question is for this year in filing your 2013 taxes, will you receive a credit for having insurance with your refund because I heard you would, but I did not see that on my taxes when I filed? Then, how is the government going to find out who has insurance and does not in order to penalize them? Reply
Charay, There are no insurance premium credits for 2013. They will be in the 2014 tax filings. Insurance companies will be reporting who they covered to the IRS for assessing the penalties and calculating credits. Mary Ellen Reply
I’ve had a pricey individual insur. policy for past few years (in CA) but am about to complete an ACA app. today. However I have yet to file my 2013 taxes but will next week – just after the ACA 3/31 deadline. When the online CoveredCA app asks if I filed taxes “last year” 1) does this mean 2013? Or do they mean ’12? 2) And since the technical answer is “no, but I will by 4/15” how should this be answered on the form before 3/31? Related question: I’m checking with a parent tomorrow, but I MAY have been claimed as a “dependent” in 2012 (no earned income, thus no tax return filed) – but will be filing in 2013 (though income was on the lower end). Given these last 2 years of varying tax status, will this in any way affect my eligibility for a Silver Enhanced (subsidized) plan? My thinking on the above is that the application is asking me if I filed taxes in 2013 (my intention is to say “yes” and get them within the week after the ACA deadline) AND my hope is that the past “dependent” status won’t affect my subsidy eligibility since I’m filing a 2013 tax return (and since by most “am I eligible” calculators I seem to qualify for some subsidy based on income). Am I right re: these 2 assumptions? Any considerations I should . . . consider . . . as I finish my app with these issues on my mind? Much obliged – I’d just like to be accurate while finishing the app.
What is wrong with ur website for filing? I got finished doing my taxes and now it wont let me get past choosing a healthcare plan! Very angry!!!! No more turbotax for me. Reply
Are the insurance premiums that I pay monthly (via payroll deduction) totally at my expense eligible for a deduction on schedule A under medical? My employer does not cover any of this cost at all. Reply
Debbie, Insurance premiums you pay through a payroll deduction are eligible for deduction on Schedule A, provided they are not part of a pre-tax benefit plan. Mary Ellen Reply
I qualify for a large subsidy since my income is not that high and I am 62. A recent letter to our local paper suggested that we will have to declare our ACA subsidy as income when filling out our 2014 tax forms next year. This would add 30% to 40% to our annual income and would double (at least) taxes owed. Is this true? Reply
Tom, You will not have to declare your subsidy as income when you file your taxes. You will need to reconcile your actual 2014 income with the amount of projected income you reported when you signed up for your insurance. If your actual income is substantially higher than your projected income, you could have to repay part or all of the subsidy you received. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Mary Ellen Reply
I make less than 18000 a year and purchased insurance through obamacare. I file an ez form and get a refund every year. Will I no longer be receiving a refund. And also, my employer wants to reimburse me for my premiums that are about 70 a month. Any reason why I shouldn’t do this? Reply
NO reason what so ever. Supposedly it’s not taxable and separate form anything that would normally be on a W2 at the end of the year. Read this: http://www.zanebenefits.com/blog/bid/315671/New-Guidance-on-Tax-Free-Reimbursement-of-Individual-Health-Insurance Reply
Chelle, Your employer needs to be sure that his reimbursing your premium does not qualify as an employer provided health care plan. As long as it doesn’t qualify, you can qualify for subsidies. The reimbursement will never be taxable income to you under the current tax laws. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Mary Ellen Reply
Much of this discussion seems predicated on entering the government website to apply. But just yesterday there was further testimony that healthcare.gov lacks any reasonable security against hackers. So while you would be a fool to enter your personal information on this website, what other options are there to apply for health insurance on one of the exchanges (State, where the subsidies are eligible OK, and Federal, where the subsidies are … wait and see) ?? Reply
My understanding is that THE ONLY WAY you can qualify for and get a subsidy or tax credit at the end of the year is if you purchase your insurance through the exchange. You can call them and deal with a person that will help you which is what I did because I wanted to eliminate the possibility of hacking my personal computer. When you do this — you need to give them your SS#. Not too thrilling but..pretty standard for insurance purposes. Since the functionality isn’t working at this time, they actually have you deal with the insurance company from that point on. In other words, you go through the market to pick your insurance company, they let you know if you are ‘entitled’ to a subsidy which you can take OR wait until the end of the year and reconcile via your 1040 to get credit. If you have any questions about your income passing muster, that would be the way to go. However, unless you go through the market place and get a ‘marketplace number’ you won’t get the subsidy at the end of the year. I just did this and I’m in NC. Once they were able to get my account set up, I called BCBS (took 2 days for them to get the information) and paid them directly. The insurance companies will bill you directly going forward as well. Short of the long, Yes the site IS vulnerable but there’s no medical information involved and….what you do give them is really out there anyway, I guess you have to have a little faith — and when I say that, I don’t mean in the government! Reply
Thanks, Karen, for your detailed account. Given all that has been reported about the hack-ability of the gov’t website and gov’t information databases in general, you are a brave woman ! The “marketplace number” is an interesting new piece of info. I am wondering if TurboTax knows about this ?
Actually, I found out from them that it’s really not ‘their’ reference number — it’s Blue’s Cross Blue Shield’s…maybe it’s their new id for me
Also..I’m not really ‘brave’ — I was stressing out so much about this and really need insurance. I thought about taking advantage and skipping a few months to save money but..with my luck..I thought it wasn’t worth it. I thought I had it all figured out — was going to go around the market place, buy outside reconcile at year end. Once I found out that wasn’t an option…I wasn’t really left with any alternative. I may or may not be able to qualify for credit at the end of the year but if I do, I’m probably going to need it. Who couldn’t use a tax credit? In any case, once I finally got it out of the way, I felt better — it’s out of my hands and I’m going to let the chip’s fall and hope for the best. I have a lot of faith — and NOT in the government!
Good morning, Karen, I wish you all the luck for this year ! Returning to the “marketplace number,” if this number is Blue Shield’s id for you, what did you get from talking with the exchange to verify that you had gone through the exchange to be eligible for the subsidy ? Or did BCBS, after you talked with them,then inquire about you with the exchange personnel ?
When I called the marketplace and finally got someone who was really able to help me — he saw that my premium was high and wanted to see if he could get it down…I told him not to waste his time. Based upon the 2012 return and even last years earnings, I wouldn’t qualify. But I do expect a change in circumstance as far as income goes and I have no clue what my income will be. With that said, he just proceeded to get me entered into the marketplace under the policy I picked and told me I needed to call them back (even if I don’t want to take the subsidy at the time) when/if I have a change in circumstance. Once I was done with him and my application was complete — he gave me an application number and the customer service number to BCBS to make payment. I’m assuming the reason you need to call in the case of a change would be 1) if you are actually receiving a subsidy now and your situation improves thus you no longer qualify or 2) your situation deteriorates (which will be me) and for budgetary purposes (ha ha) they want to be aware. He also said, that in that case, I might qualify for cost sharing saving (something like that) — ie even though I may have a $3500 deductible now and a 30/70 cost share — I could get my deductible, copay and co share lowered — THAT money would not have to be paid back and would not be reflected on the 1040. However, someone is paying for that… Best wishes to for the New Year too Bruce!
So it seems that one way to deal with the problem of our income exceeding the 400% of poverty level (with the resultant loss of our entire subsidy) is to file separately instead of jointly. Will the IRS ask to see our divorce papers since we have been filing jointly for years ? And does TurboTax make it easy to do a what-if analysis of this ? Reply
I will be interested to see if Mary Ellen can provide you with an easy way to do this analysis within one tax return. My guess is you will have to do at least two or three separate tax returns and then compare the results TurboTax produces. Reply
I’m not a turbo tax person and I don’t even want to know if you are actually going to get divorce over this but…that’s always a possibility on an audit and then…will you be able to provide them? again, I don’t really want to know. I also think Bruce was correct and that the only way you’ll be able to figure it out is to run separate returns — I’ve done that before and just name them different things. You can always open up a saved return and before changing any of the information to run another scenario, save it as something else and make changes to it so you don’t have to re-enter ALL the information again. With regard to the ‘divorce’ thing…depending upon where you live and their laws, I think some states allow you to file separately if you are legally separated — i.e if there are children involved, one could file as head of house maybe the other single? Although some states require a filed agreement, some states recognize an agreement drawn up between the parties and notarized — I believe the federal government recognizes state law…something to consider and/or look into — cheaper than divorce I would think…. I think I’d rather spend the legal fees on a discrimination case than on a divorce over this! Reply
Thanks, Karen, for your input and I understand. It will be interesting to see if Mary Ellen of TurboTax has any further clarifying info. The “divorce thing” seems to be one avenue that this law left open to manage the subsidy nullification effect of making just a little too much money in a year. So we might as well understand the requirements, though I can see why a lot of people would just dismiss it out of hand.
I hear you but…could you imagine if everyone got divorced over this! Then of course once everyone went through the expense, they’d just figure out a way to nail you for being single. Sort of like the benefits of having an electric car and solar panels. Now that people have gotten on board, they want to tax them as well. They want to tax you for using the sun to generate your own electricity! I suspect, they’ll figure out a way around this a lot quicker than the solar panels and electric cars! too many people impacted. also…for some reason I don’t think ‘Turbo Tax’ is going to weigh in on the filing as divorced thing…at least I wouldn’t hold my breath on that one. We’ll see.
Well, Karen, Reno could be a happening place going forward ! 😉 But I just ran some numbers for my family on the kff.org subsidy calculator, and if we filed separately and applied separately for health insurance, with me taking 2/3 of our joint income and our little one, and my husband taking 1/3 of joint income, net of the subsidies we each would then get, we would for a Silver Plan pay just a little more than HALF of what we would have to pay if we apply jointly which gets us NO subsidy. And that is several thousand dollars PER YEAR to be saved by divorcing. I would agree that it would be far better to fire the idiot politicians who put this law on the books and then wipe the books clean of it. But it looks like the ACA makes divorce a serious financial consideration. As for TurboTax weighing in, as you say, we’ll see. Reply
No sign that TurboTax is going to reply, and I think I am with Karen … don’t hold your breath! But the marriage penalty has been known for some time. Here is an interesting quote from Mark Duggan, a health economist at the University of Pennsylvania’s Wharton School: “The ACA, like the tax code, is complicated, and it sometimes provides a marriage subsidy and a penalty. Will it encourage some weird stuff like some people getting divorced? Yeah,” Duggan said. “That was the challenge of this thing. Where do you draw the line?” So you may be right about Reno !
I am self employed, my spouse is W-2 employee. We file married, jointly. His employer offers him insurance at about $100 a month. (I suppose it will go up now with the health care reform) His employer also offers family insurance but the rate is an additional $500 a month. So I opt to stay on my own private insurance for about the same price. Can I deduct my insurance premiums on my business return (I make a profit) or can I only deduct co-pays. Or neither? This question is for both 2013 and 2014. Reply
Or- as another option can I deduct my premiums from our joint return instead of my schedule C? Which is better? Reply
I just went to the obamacarefacts.com site and it says: “ObamaCare gives states and the federal government the option of charging insurance companies a 3.5% fee, on the cost of the premium, to sell insurance on the exchange. States also have the option of using grants and other forms of assistance from the federal government; however, states that refuse setting up a state run exchange will not get the subsides, therefore their constituents will purchase insurance at what will most likely be a higher rate.” With all that said, I’m from a state that did not set up their own exchange – most states did not. If I read this correctly, it is stating that the subsidies won’t be available to those states. So…am I reading it correctly and if so, is that true — are most of us just spinning our wheels worrying about this credit and/or subsidy because we won’t get it anyway? The site is definitely a liberal bias site because it more or less slams the GOP for fighting this law but…it is suppose to contain the FACTS. Again, are we all entitled to the subsidy if we meet the financial guidelines or not? Reply
Hi Karen, What you have is a federal-run state marketplace, and you can still qualify for the subsidies if you purchase your insurance through your marketplace. Mary Ellen Reply
OK — Thanks. So basically what you are saying is that the obamacare facts site is politically fueled – not fact fueled. As long as you enroll through the marketplace and qualify financially, you are entitled to a subsidiary regardless of what your state government opted to do. Correct? Thanks!
Karen, Yes, if you purchase insurance through the marketplace and qualify financially, you can get the subsidy. It does not matter if your state runs their marketplace or the federal government runs it. Mary Ellen
Is there any way to block out Bruce and Karen’s constant blogging of their mutual “chicken-little” love affair?
Caveat emptor when viewing any FACTS or fact-checking website, as they have no less political bias than any other. Mary Ellen’s response to you below may or may not be true. Just taking the language of the ACA, as it was written, it provides that tax credits are available for months in which an individual is enrolled in a qualified health plan “through an Exchange established by the State under 1311” of the ACA. There is no explicit recognition of the eligibility of the premium tax credits (subsidies) for an individual acquiring insurance through a Federal exchange. Now, yesterday, a Federal judge in the liberal D.C. Circuit ruled that it surely was the intent of the law to include everyone in this eligibility whether applying to a State or Federal exchange. This ruling is now under appeal, and there are several similar legal challenges in other jurisdictions. So we will have to wait and see whether the power of certain judicial interpretation and imperial edict from the Executive Branch and its agencies trumps the the law as it was written by the Congress. The Unaffordable Uncaring Act is one big mess to be sure, but we do live in interesting times, n’est-ce pas ! Reply
I know we all have our own political preferences either way…However, it ceases to amaze me how Washington (both parties) continually appear to have their heads stuck in the sand as if the rest of the country out side of that belt way is a virtual experience and not the REAL world. Politicians shouldn’t be allowed to play Russian roulette with our lives for political gain or interest like that… particularly our healthcare. We should know what we can expect and exactly what it is going to cost. The rest of us can’t operate like DC does. Thank GOD most of us don’t!
If my spouse has healthcare through his employer and it can also cover me, but is too expensive, will I still get a tax credt when I purchase healthcare through the marketplace? Reply
I don’t understand why that would be my fault and she also told me ro call someone to make sure they’re taking enough this year but I don’t know who to call. Reply
I made arou $ 14,000 last year and when I went to file my taxes the lady said I owe money because they didn’t take out enough from my checks in the federal. I’m a single person and I really don’t understand that because how was I suppose to kno where they should be taken more money from. All I see is that they were takin largw amounts from my checks every pay day. Reply
I have health insurance through my employer which is a cafeteria plan so it is not taxed and my daughter is also on my plan. The premium is taken out of my check but then my ex-husband pays me for the premium. Can he deduct that on his taxes? Reply
Thanks, Mary Ellen. I have heard that income verification for receiving a subsidy has been delayed until 2015. Is this correct ? If so, it would seem to invite fraud this year since if the IRS somehow finds that an applicant has a higher income than he/she reported, it can only re-claim the amount of the subsidy fraudulently received from his or her tax refund. And if you use TurboTax wisely as a planning tool, you should not have a refund for them to snatch.
Could you look at my question about documentation requirements for filing separately above – January 16, 2014 at 4:38 pm Thanks and good weekend !
Why is it that the subsidies offered for a household (say 2 adults and 2 children) are so much greater if the adults are divorced and apply separately (each with one of the children) than if they are married and apply jointly as a family ?
CathyH, there was an interesting article in the Seattle Times about a Washington state couple who are on the flip side of the marriage problem you have asked about. They were unmarried, and each had low income which meant having to enter Medicaid. Not wanting to do that, they got married, and their then joint income was enough to avoid Medicaid and get a big subsidy on their exchange for OBummercare insurance. So both the exchanging and shredding of nuptial vows is a tool to consider under the “Unaffordable Uncaring Act” !
Good morning, Craig, By “shredding of nuptial vows” I meant divorce. In other words, the way this obamidable law was written, one’s marital status can have a very significant impact on what health insurance the government will allow you to have and at what price net of any subsidies.
you said quote”They were unmarried, and each had low income which meant having to enter Medicaid. Not wanting to do that, they got married, and their then joint income was enough ” You are such a defeatist and right-winger. The exact problem in this country. You believe mostly hear-say and never fully research anything in depth to support your old-fashioned live in the past views. Please do not respond to me, I have to deal with unread knuckleheads like you on a daily basis.
The knuckle, dear Craig, would seem to be in your head. You can read the Seattle Times piece for yourself and you can perform the same analysis using the TurboTax, Kaiser Foundation or other subsidy calculators. The results are the results.
Cathy, Verifying income is part of the Premium tax credit calculation that will be part of your 2014 tax return filed in 2015. The premium tax credit can be assessed and collected regardless of the refund on your tax return. It is only the penalty for not being covered that can only be recovered from your tax refund. Please read more here https://www.healthcare.gov/how-does-the-affordable-care-act-affect-me/ Also visit http://www.TurboTaxAnswerXchange.com for more answers to your specific health care questions. Mary Ellen Reply
I have been using the TurboTax subsidy calculator to explore what somebody told me was a dramatic breakpoint after hearing the following on CNBC: a family of three in New York earning $78,120 will pay $7,421 in premiums for a mid-level “silver” health plan, after taking their subsidy into account. But if they make just one extra dollar, they’ll have to fork out $12,784 for insurance — an increase of $5,363. Unless people are very careful, they could experience a huge hike in their marginal tax rates ! Reply
The ACA is largely a giant case of fraud, and so it would only be poetic justice if people played the system for all it is worth this year (presuming it lasts that long.) Another aspect to consider would be that if you are married, you might consider a divorce as the combined subsidy level of you and you spouse (then ex) would be appreciably larger than the subsidy you could get as a married couple. It’s just how this “law” was written ! Reply
So, the government (as represented by the politicians who passed this law in 2009) wants to inflict a big penalty on me for making more than 400% of the poverty level and for being married. And what country is this ?!!!!!!!
If Im under 26 married and filing my own taxes can i get under my parents family plan through obamacare? Reply
RB, Anyone under the age of 27 can be covered by their parent’s plan. Your spouse or children cannot be covered on their plan. Mary Ellen Reply
If I am under 26 married and filing my own taxes can i get onto the family plan of my parents through obamacare? Reply
I have been looking at the subsidies using the TurboTax subsidy calculator, and there seems to be a huge breakpoint. I heard, for example, recently on CNBC that a family of three in New York earning about $78,000 will pay $7,421 in premiums for a mid-level “silver” health plan, after taking their subsidy into account. But if they make just one extra dollar, their premiums will rise to $12,784 for insurance — an increase of $5,363 — because they will have lost any subsidy at all. Can’t imagine what the implicit marginal tax rate is around these subsidy breakpoint levels ! Reply
Rudy, You do not have to be a dependent on your parents’ tax return to be covered by their health insurance, as long as you are under the age of 27. Mary Ellen Reply
Mary Ellen, I just spoke with someone off the federal healthcare website and they said the only way my wife (who is 22) will be covered is if she files her taxes with her parents and is listed as a dependent. From what you are saying, is this not true?
I’m self employed and my income varies year to year. I’m on the cusp of being eligible for a subsidy, however if I make a little LESS it says I can’t get the subsidy. So, what happens if I apply using higher income criteria, get insurance through the marketplace and accept the subsidy, but then something happens (catastrophic illness?) and my income is below the threshold for qualifying for the subsidy? Will I have to pay that money back because I am too poor? Reply
Kristina, If you receive a subsidy, you will need to calculate the actual premium tax credit when you file your 2014 tax return. If you received more credit than you are entitled to, you will need to repay it (with limits). If you received less, you will receive the credit on your return. It will increase your refund, or decrease your tax due. Mary Ellen Reply
You probably thought I’m at the upper levels of income. That part is perfectly understandable, but what if income goes too LOW? People under the poverty level are NOT eligible for a subsidy. Will they really be required to pay subsidies back when income is so low? Or will the standard repayment caps apply requiring a partial repayment?
We are in the same style boat (self-employed with income varying year to year), though from what you say your boat may be smaller than mine. You are worried about remaining above the 133% of the Federal poverty level (FPL) threshold, and I am worried about remaining below the 400% of the FPL threshold. First to your worry, I would think that if you are close to the 133% of FPL, you would want to over-estimate your 2014 income for the simple reason that if you report a lower level, you will be shunted into Medicaid which from most reports is the poorest quality healthcare in the country. Even though the healthcare networks available through the insurance company plans on the exchanges are often not very great, still they have to be better than what you would face in Medicaid. Then in 2015, when you file your tax return and do the reconciliation, if you find your 2014 income less than the 133% FPL, then as Mary Ellen says, you could be responsible for repaying at least some of the subsidies you received depending on your numbers (for households with income less than 200% FPL, the repayment is capped at $600/$300 individual.) Unlike the penalties for not having insurance, for which the IRS has no recourse against you except if you have a tax refund due, the IRS may have some legal teeth in any clawback of excess subsidies. So put aside that much money and stay out of Medicaid ! My boat may be bigger, but I risk losing much more if my income steps over the 400% FPL line. Because then there is no cap, I would lose all of the subsidy and have to repay it all. And I would have to make a boatload more income to make up the loss of the subsidy and to pay the higher income taxes to get back to where I was after-tax at 400% FPL. Reply
Thanks Cathy. Ironically, I would settle for Medicaid, but I don’t qualify for that either. My state opted out of the expansion. I can live with having to pay back just $300 of the subsidy, but how stupid is it that I will have to spend more because I earn too little. I feel for you position as well. You would think they would do a better job of phasing things out. After all, that would make calculations even more complicated and it always seems like that’s what the like – turning something simple into something complex.
If you live in a state that has opted out and are not required to go on the federal exchange, does that mean you will not be taxed if you opt out and do not get health care? Reply
Roberta, If your state does not have its own exchange, you should use the federal exchange for health coverage if you are not covered by a personal or employer plan, or by Medicare or Medicaid. You must be covered by some plan in order to avoid the penalty. Mary Ellen Reply
As for the penalty, ignoring for the moment the implications of the court challenges to the administrative interpretation by the DHS/IRS, avoiding it will also mean managing ones withheld or estimated taxes more carefully so that one is not left with a refund position at year’s end. Only then can the IRS pick your pocket via this penalty. Otherwise, they have under the law no recourse against you.
Bruce I heard on one of the political news channels that if you owe the penalty and the IRS can’t retrieve it from the tax refund, they will mail you a bill. If you don’t pay it by their “due date”, they will charge interest for every month it’s not paid. They have thought of everything to hurt you one way or the other.
Good afternoon, Cindie, What you say I believe is correct. But as long as you avoid having a refund due at the end of each year, they can exercise their calculators ’til the cows come home, and the law gives them no power to collect from you. But you are also right in that the government (in particular this Executive Branch and its agencies) will do everything they can to make your life worse.
Will the payments that I make to Medicare now be a paid tax on 2015 income tax rather than a medical deduction? Reply
I only made $10,000 last year but I still want to file for my income tax. Does this mean that I still have to purchase a health insurance plan? Reply
While the White House is keeping under raps the demographic composition of those who have supposedly signed up for OBummercare, the evidence from the state exchanges which have been reporting some of their data suggests that the pool of young applicants is well below the percentage targets. It remains to be seen whether the resulting death spiral will beat out the various court challenges to the Unaffordable Uncaring Act (aka ACA) before the November election. Reply
It looks like we have found someone who really believes that “if you like your plan (doctor), you can keep your plan (doctor) … period” ! The Unaffordable Uncaring Act “fixes” nothing, as it essentially confuses and conflates two important elements of this world – insurance and welfare – destroying the private market for the former while attempting to boost the latter. The notion that “insurance companies can no longer drop you or jack your rates up on your individual policy for insurance that you buy through the exchanges” lacks only the word “period” at the end to punctuate this childish fantasy. No insurance company is bound by law or police/military force to remain a party to any exchange. And the insurance company bail-out provision in the Unaffordable Uncaring Act only goes so far without Congressional action (fat chance !) But even if the government could enslave the insurance companies, holding them on the gov’t plantation to do its bidding, there are all those “real crappy doctors” and hospitals which have and will opt out of OBummercare. And while we can say to ourselves that they never really cared about helping people anyway and good riddance, the pool of the “insured” will balloon and the pool of caregivers will shrink. And more and more people will find out that having health insurance is not quite the same as having access to health care. Reply
IMy husband & I both work. We both have our separate insurance companies and our employers pay a portion of our Primary insurance premiums & we have the remaining portion of premium due deducted from our checks every payroll. I itemize & would like to know if I could claim the total premiums deducted from our paychecks as a Medical Expense. Reply
Rosetta, If your employers reduce your taxable income through a Section 125 benefit plan, you cannot deduct the premiums you pay. Most employers utilize these plans so your taxable income is already reduced by the premium. If your employer does not have a Section 125 benefit plan, then you can claim a medical deduction for the premiums you pay. Mary Ellen Reply
How do I find this information. For 2013 , I am paying after tax money for my medical coverage, which offered to me by my employer where i was laid off from. Will I be able to deduct this premiums from my tax return.
Yes as long as your total medical expenses, (premiums, copays, meds. etc ) exceed 10% of your Adjusted Income for 2013
Just to add to Mary Ellen’s answer, provided you can deduct the premiums, the medical deduction threshold has been increased by the Unaffordable Uncaring Act from 7.5% to 10% of AGI. So your premiums plus other medical expenses will have to be that much higher to enable you to itemize anything. But with the premiums being double and triple for many people whose insurance was canceled, that may not be a problem. Now wasn’t that nice of the Unaffordable Uncaring Act to make that so ! Reply
I had planned to purchase my insurance directly from BCBS and avoid the govt market place. I’m not sure what my income for the year will be and I had PLANNED not to take a subsidy and if it turns out I’d be entitled,have it reconciled via my 1040 at the beginning of next year. HOWEVER, I just spoke to a Farm Bureau sales person that sells BCBS and he said that if you want a subsidy either directly applied to your premium as you go OR reconciled at the end of the year via a 1040 THE ONLY way you can get it is if you purchase your insurance via the govt the market place. He said BCBS policies can be purchased through the market place and if you think you might be entiltled to a subsidy, that’s they only way you will get VIA your 1040 in 2015. Is that right? i.e. People that purchase insurance outside of the market place and then wind up earning less money than expected won’t be able to have subsidies applied to their premiums for 2014 in 2015 if they didn’t go through the market place to purchase their insurance? Reply
It is even more complicated than what you have been told. “Subsidies are only to be made available, and tax penalties for not signing up for health insurance are only to be assessed, in states that create their own health-care exchange.” (Wall Street Journal piece) This is what the Unaffordable Uncaring Act actually says. Now the White House, through the IRS, is trying to make this apply to all the states. But various court challenges to that sort of unconstitutional re-writing of the law will probably succeed and could collapse this whole nonsense (we hope!) But for now, it depends on which state you live in. Good luck to America ! Reply
I actually live in NC and if I’m not mistaken, NC did not set up their own exchange they allowed the feds to doit for them. and again, I was told by a NC broker the only way you can get the credit is if you go through the government market place — IE they are attempting to force people into the system. However, if BCBS and the like offer the same polices outside of the market and the pricing is the same….then I think that is unfair ESPECIALLY since the government can not and will not guarantee safety in using the site! If the IRS can calculate the credit on a tax return for people in who purchased through the market place, then they can calculate for people outside the market place as well.
You are correct that the lack of security and disregard for it on the part of those executing the Unaffordable Uncaring Act is disturbing and a scandal unto itself. The “subsidies” as you again rightly point out could be calculated in the same way for people wherever they live and through whatever source they buy their health insurance. But the Act (the current law) is very specific. And only those people who source their insurance through the appropriate exchange (which many states do not have) are eligible to get these “subsidies.” We can hope that the Unaffordable Uncaring Act will die a natural death this year. In the meantime, good luck to us all.
Although I do think something needed to be done about health care costs, (ACTUALLY INSURANCE COSTS – Insurance companies are such a scam, you purchase for protection and if you actually need it, they drop you or jack your rates up!) I never agreed with this bill… how can you agree to terms you didn’t read???? As a result HEALTHCARE has not improved, in fact quite the opposite! What they should have done was gone to a direct payer instead of one payer — get rid of the insurance companies…let us pay the doctors etc. I don’t know, maybe that’s not the answer. For the time being, it is what it is and even if this bill dies over the coming year the damage has been done. Too many changes have been implemented over the past 4 years, doctors left, and no one is going to turn around and lower their rates. Healthcare as we knew it is gone. You can’t turn back the clock.
It seems ironic to me that you complain about this: “Insurance companies are such a scam, you purchase for protection and if you actually need it, they drop you or jack your rates up!)” and yet you seem unaware that this is one of the things the ACA FIXED – insurance companies can no longer drop you or jack your rates up on your individual policy for insurance that you buy through the exchanges. Coverage is mandated issued to anyone at the group rates contracted by the govt through the exchanges. And they cannot drop you when you get sick or for a pre-existing condition. They cannot set an annual or lifetime maximum on your benefits. These was some of the major flaws in the old system that the ACA set out to correct – and did. I understand that health care and insurance is a very frustrating topic/situation, I just wish people would take a little more effort to understand what they’re complaining about.
If you take what I said out of context, yes it would appear Ironic. However, I did preface that statement by saying “Although I do think something needed to be done about health care costs, (ACTUALLY INSURANCE COSTS… And you are correct, that is the one thing they did fix….Insurance companies must take you and can’t kick you off. However the actual cost of this has not yet been addressed ( we WILL see a huge jump after the 2014 elections) and in the process they actually destroyed the actual HEALTH CARE system. An insurance agent — or more to the point, an IRS agent isn’t qualified to make medical determinations…
Actually the health care system was destroying itself which is why the new law was needed. I am glad it forces congress to pay for health insurance. And I am glad that I can keep my kids on my insurance until they are 26 giving them enough time to get into a stable job with good benefits after college. As for doctors quitting? That’s their problem as a great percentage of them were only doing it for the money anyways and it’s obvious that the quitters never truly cared about helping people. Then again, there are some real crappy doctors out there whom somehow lost all logic of their field and just say a bunch of garbage and prescribe a bunch of bull ’cause they know nothing.
You are again right that not just something but much needs to be done about the cost of health care and health care insurance. For the former, the need for tort reform to bring down the huge cost of medical liability insurance for doctors/hospitals, and for the latter, the need to repeal the insane prohibition of selling health insurance across state lines (to name two of the more significant somethings that need to be done) have been/are in legislation passed by the House in recent years but still lie under Harry Reid’s derriere in the Senate at the command of King Hussein in the White House. Only when these political clowns are gone will it be possible to bring about some common sense reforms to address cost in this sector of the economy.
One would have thought that ‘change’ would have occurred in 2012… Hopefully, now that a CLEAR majority seems unhappy maybe 2014 and 2016 will bring better results and new residents to Washington. Let’s just hope it’s not too late and in the mean time, not too many undeserving people get hurt as a result of all this.
You have my sympathies here. It is more than just a shame that the country must experience this level of policy disaster before it develops a “CLEAR majority” (and I say this as an Independent deeply embarassed that so many Independents hadn’t figured this out by 2012.) Though there is little way to erase the cost to this country of what these politicians have done, it is never too late to start over and make this world a better place. So, buck up and let Ray Stevens cheer you and all:
Hi, my husband and I make about $55, 000. I make about $20,000. My husband gets coverage from his employer. I and my daughter got insurance through the Obama Care and I am paying $406 per month on premiums. How can I claim this when filing taxes. My daughter and I are in college. Kindly help me understand the procedure. Reply
My husband has private health insurance and his employer writes a check each month to the carrier to cover half of the premium. Will he be taxed for any of this? Does his employer have to add this to his W-2. They are not sure which is why I am checking into it. Thanks! Reply
Angie, Payment of health insurance premiums is not taxable, even if it is for an individual policy. Employers are required to report the amount of health insurance premiums they pay for an individual on their W-2, in box 12, Code DD. Mary Ellen Reply
Hi, My husband is self-employed and I am currently unemployed. We want to purchase health insurance through Covered CA, but wonder if it matters whether or not I submit the application as head of household, or should my husband submit it instead (to qualify for the self-employed health insurance tax deduction). Reply
My husband’s employer said he is not allowed to claim any dependents, which would be myself and our son. He has always claimed us on his paycheck. Why is he being told that he cannot do this anymore? hehis employer correct? Is this a new law, as they are suggesting? Also, what ifvwe file taxes at the end of January, but do not buy insurance until February? Will we be penalized in January when we file for not having it at that time? Reply
Elizabeth, I’m not sure if you are talking about being able to cover dependents and spouse on his health insurance or claim an exemption for income tax withholding. The employer can control health insurance, but the form W-4 controls the tax withholding. For the penalty, you are allowed up to three months to be without coverage. So if you are covered by February and remain covered for the remainder of the year, you will not be penalized for not being covered in January. Mary Ellen Reply
I qualify for a $171 Subsidy and am responsible for $94 a month. Am I able to write the amount I’m responsible for since I’m paying it post tax when I file in 2015? Reply
Michelle, If you pay out of pocket for coverage, co-pays, etc, the costs can be included in your medical expenses for a tax deduction. You will need to meet the other requirements for itemizing deductions, such as medical expenses exceeded 10% of your income (7.5% if you or your spouse are 65 or older), and enough total deductions to exceed the standard deduction for your filing status. Mary Ellen Reply
Marketplace told me I would be eligible for $195 per month subsidy, and I would be paying an additional $43 per month for insurance.Will this mean I will owe money at tax time? Reply
Hi Chelsea, No, it doesn’t mean you will owe. Your eligibility and amount of subsidy is based on your household income and size. The only way someone may owe is if their actual income ends up being higher than the income that the Marketplace was given when they calculated your subsidy. This will all be reconciled when you file your 2014 taxes in 2015. Thank you, Lisa Greene-Lewis Reply
Under my former employer if I had 30 years of service and was at least 50 years of age, I would be offered retiree’s health insurance when I turned 55. I will be 55 in August. If I decide to take the health care coverage through my former employer will the premiums I pay be tax deductible? Reply
Cathy, The premiums you pay for health coverage will be a medical deduction. Whether you will benefit from the deduction depends on if your total deductible medical expenses exceed 10% of your adjusted gross income and your total itemized deductions exceed your standard deduction. Mary Ellen Reply
I’m married, but my wife and I file taxes separately. My income is pure SSI and amounts to less than $17,000 a year. However my wife is allowed to carry me on her insurance which means I’m covered. The IRS because of my earnings do not require me to file a return, but can get a $8,000 tax credit if I drop the insurance. Does this tax credit get directly paid to the Insurance Company I pick, or do I have to pay the premium myself and try to get the credit back from the government ? Reply
i qualified for a large subsidy. when I spoke with someone through the Marketplace she told me that with this I wont receive any sort of return with my 2015 filing. I don’t think I like this. can someone please explain whats going on? Reply
Hi Erin, If you normally receive a tax refund, and your tax situation doesn’t change, you will still receive that refund. The subsidy you qualify for can be used throughout the year to pay your insurance premiums, or, you can opt to pay the full premium and get an additional refund of the subsidy amount when your file your taxes in 2015. That is the refund the person from the Marketplace was talking about, not your usual refund. Reply
Hi I’m running into a dilemma with the Affordable Healthcare application…if I understand correctly it seems like the application is based off of our 2012 returns… I have in the past (2012 included) claimed my mother as a dependent on my tax return but now no longer meet the requirements to claim her, so she won’t be filed as a dependent in the 2013 tax year. She currently doesn’t have any health coverage and won’t be eligible for any assistance if claimed as a dependent (per our 2012 return). Is there any way I can use our 2013 information to apply for AHC instead of having to refer way back to 2012 when our situation was a lot different (and disadvantageous to her receiving aids for health insurance)? I was wondering if she can just go ahead and apply for AHC assuming her new (unclaimed) status in 2013? OR must I apply for AHC for her as my dependent using our old 2012 information? (And also, is this still the case even AFTER I already filed my 2013 return?) Reply
IF I FILE MY TAXES AS MARRIED FILING JOINTLY EVERY YEAR BUT GET INSURANCE SEPARATELY FROM MY SPOUSES JOB WILL I BE PENALIZED ON MY TAXES. THE JOB WONT RECOGNIZE US AS MARRIED BUT THATS HOW WE FILE OUR TAXES UNDER COMMON LAW OF THE STATE. HOW CAN I WORK THIS OUT? Reply
Hi Bravo, If you are covered by an employer’s policy (even if it is your spouse’s employer), you don’t need to worry about acquiring more insurance. The insurance companies are supposed to be reporting who they cover, probably by social security number. Mary Ellen Reply
Really confused on this tax credit. we normally get back 4ooo each year from our taxes. will the obamacare plan affect this? Reply
The ACA will not impact your refund directly. If you are covered by a medical insurance plan through the marketplace for your state, you may qualify for a tax credit, or a subsidy to pay your premiums. If you underestimate your 2014 income, and receive a higher subsidy than you are actually entitled to, you will be required to repay some or all of the overage. If you are not covered for more than three months of the year, you will be subject to a penalty, and your refund may be reduced to pay the penalty. Reply
I have heard conflicting reports. If I get 1300 per month in subsidies, lets say ,is that added to my taxable yearly income. If so,won’t I owe about 4,680.00 in taxes using 30% as a rate? Reply
Gnarlyone, Subsidies will not be added to taxable income. If you underestimate your income, and claim more subsidy than is allowed for you, you will have to repay the excess, up to a limit which varies by income and filing status. Reply
My wife and I qualify for the healthcare premium subsidy and have obtained insurance using the subsidy thru healthcare.gov. We are eligible for Medicare in August and September 2014. What happens to the subsidy after the first one goes on Medicare. Also, when filing our 2014 tax return and the subsidy becomes a tax credit is it pro-rated for the months prior to Medicare? If so, how is it calculate? Reply
My employer offers health insurance but it’s expensive and I can do better if I buy a plan outside of my employer. Question, plan from my employer is paid for before taxes, how does it work if I buy my own insurance outside of my employer. Do I pay for with after tax money? Reply
Through your social security. Any money you ever make that can be documented, will be taken from your bank account and yes it is legal. They settled this issue in a federal court case in the past. Reply
Hi Jim, Penalties for not having insurance will be calculated when you file your 2014 income tax return in 2015. The penalty is per person not covered, a minimum of $95 or 1% of your income if that amount is greater. Mary Ellen Reply
Penalties for not signing up for OBummercare can be collected by the IRS only if you have a refund due on your tax return, in which case the IRS will reduce your refund by the amount of the penalty they calculate for you. Obviously, OBummercare makes over-paying ones taxes an even more ill-advised course.
Actually, the penalty this year is not 1% of income but rather 1% of income over a base figure ($10K for singles, $20K filing jointly.) But as has been noted, the IRS can only collect this penalty from you forcefully by grabbing any refund you might be due on your return. It was noted recently: ‘ Justice Roberts in his argument stated quite plainly that there is no “penalty”. On Page 8 of Justice Roberts Opinon of the Court Cite 567 U.S. (2012) he states “The Act, however, bars the IRS from using several of its normal enforcement tools, such as criminal prosecutions and levies. 5000A(g)(2)” ‘
As for the penalty, ignoring for the moment the implications of the court challenges to the administrative interpretation by the DHS/IRS, avoiding it will also mean managing ones withheld or estimated taxes more carefully so that one is not left with a refund position at year’s end. Only then can the IRS pick your pocket via this penalty. Otherwise, they have under the law no recourse against you. Reply
Mom is handleing finding insurance for my grown kids that. I do all accounting and taxes and budgets they work long hours so please send to personal labeled in mom name twila hayward and she will calk to check our quoteS she has our information. Thanks Reply
I care full time for my aged mother and so am supported by her income and am her tax dependent. I applied as a “family” for insurance just for me, but I did not qualify for tax credit because I am a dependent. If my mother applies for insurance just for me, will she then be eligible for the tax credit? I find the rules confusing. Any thoughts on this situation would be appreciated. Reply
John, The credits are dependent upon household income and family size. In your case, the household income is your mother’s income and the household size is two. Your mother is responsible for applying for insurance for the two of you, although she may not need insurance if she has coverage through other sources, such as employer, retirement or medicare. Mary Ellen Reply
Is household income how you will file or who you can claim regardless if you claim them for 2013 or not? I want to opt-out and pay the penalty but want my wife covered by the exchange, both of us work and her job does not offer health coverage, Can and should we file separately to use her income alone for her coverage alone to maximize the tax credit for her coverage? Thanks in advance! Reply
William, Your filing status does not impact household income. You must combine your income for determining the possible credits even if you file separate tax returns. You will also be responsible for insurance for any dependents on your tax return. Mary Ellen Reply
If an employer offers coverage to employee and dependent children, but not the spouse, will the spouse qualify for a tax credit when buying through the exchange? Reply
Kathy, Household income and family size will determine the size of any tax credits you may qualify for. Mary Ellen Reply
I expect to be laid off early next year — January/February and plan to purchase Insurance. I have no idea what my income for next year will be in 2014. If I don’t have a ‘subsidy’ applied to my premiums on a monthly basis; CAN I collect them via my 2014 tax return? If they base the subsidy on 2013 or 2012 income, I wouldn’t be eligible, but I don’t expect my income to be anywhere near that high on 2014. I’d prefer to pay the premium, not owe anyone any money and get any credit due at the end. IS THAT possible or doesn’t anyone know? I’m sure I won’t be the only one that goes from high earner to low or zero as a result of layoff. Reply
Karen- I had the same question and yahoo finance’s section directed me to healthcare.gov where deep in they explained essentially yes to your question. When one files their 2014 tax return you will be reconciling any advance credits you may have taken throughout the year (taking zero as you go is an option) against what your actual 2014 magi when filing dictates you qualifiy for. When signing up for a plan we’ll be estimating our upcoming 2014 magi to get estimated potential credit. The site says we will be able to choose to receive the estimated monthly credit in full each month or a portion of it in case we’re not confident of our estimated 2014 magi and do not want to “owe back” any money when reconcile at tax filing time. Hope that helps, I had same unease at projecting modified adjusted gross income for the coming year. Disclaimer: I’m not a tax professional but this is what I found on the website in deep. Unfortunately, I’m traveling and not good at pasting in links etc. on tiny screen so use my words at own discretion. Reply
Thank you! After further consideration I more or less realized they are actually giving us an ADVANCE on anything we might be getting back as a result of having to pay better than 10% of our income toward medical. Think I’ll wait and get the refund…
My husband is self-employed and I won’t have a job until August 2014. We won’t have insurance until then too. If we chose to not have insurance until Aug 2014, will we still be penalized? Reply
Tiffany, You can be penalized for the months of April, May, June and July. You are not required to have insurance until April 1. Mary Ellen Reply
As for the penalty, ignoring for the moment the implications of the court challenges to the administrative interpretation by the DHS/IRS, avoiding it will also mean managing ones withheld or estimated taxes more carefully so that one is not left with a refund position at year’s end. Only then can the IRS pick your pocket via this penalty. Otherwise, they have under the law no recourse against you. Reply
If I have itemized on my tax return in the past and have claimed medical premiums with a private insurance company, will that remain the same for deduction on my taxes? Reply
Linda, Medical insurance premiums you pay will continue to be deductible. If you purchase insurance through the exchange and receive a subsidy, you will need to reduce your deduction by the amount of the subsidy. Mary Ellen Reply
I am retired and am on social security and medicare. My wife, who is retired but not yet eligible for medicare, had her own health insurance with anthem blue cross but her policy is no longer available because of Obamacare. She qualifies for a tax credit subsidy but we have a very low tax burden. How can we take advantage of the tax credit if we pay little or no tax? Reply
Hi, You can take the tax credit to help you pay for your insurance in 2014, before you file your 2014 taxes in 2015. The tax credit can be applied to your monthly premiums. Thank you, Lisa Greene-Lewis Reply
Yes but, CAN you take the tax credit ON the 2014 tax return rather than take it as a subsidy? If you do not apply a subsidy that you may be entitled to during the plan year CAN you get it via your tax refund at the end of the year? Again, if you don’t know what your annual income will be…and I know mine will be different in 2014 than it was in 2012 and 2013 — I assume far less. OR don’t you know?
Hi, Yes, you can opt not to apply any subsidy and get it as a credit on your 2014 tax return. It will be a refundable credit, like a tax payment, even if you do not have a tax liability. Mary Ellen
Daddyomommyo: I have the same question as you, How can we take advantage of the tax credit if we pay no taxes when we file? Or more specifically, do we have to pay back the credit if we used it to decrease our monthly insurance premiums, because there are no taxes owed to subtract it from on our tax return??? And I don’t see any other letter answering our question. Please can TurboTaxLisa or some other knowledgable person speak to this?? Reply
If you have health insurance you are all set. You don’t have to do anything. I just got notice my policy is being cancelled and I found out over 4 million others are getting the same notice. Thanks for the accurate info Lisa. Reply
Hi Bernard, I’m sorry about your insurance. Unfortunately under the Affordable Care Act, insurance policies that did not meet the “minimum essential requirements” required by the law are being canceled. Read more information about what is meant by minimum essential coverage here https://www.healthcare.gov/what-if-someone-doesnt-have-health-coverage-in-2014/ Thank you, Lisa Greene-Lewis Reply
Would it be operationally accurate to say some people’s income taxes can go up 100% as a result of the ACA? For purposes of my question, income tax is defined as the amount the ACA could cost someone out of their income. Thanks! Reply
The penalty is $95 OR 1% of your income above the minimum tax threshold, whichever is higher. The penalty could be many hundreds of dollars (even thousands, if you’re a highly compensated individual).
Defined in this way, sure. Premiums with higher deductibles for many people are double to triple what they were paying. As for the penalty, ignoring for the moment the implications of the court challenges to the administrative interpretation by the DHS/IRS, avoiding it will also mean managing ones withheld or estimated taxes more carefully so that one is not left with a refund position at year’s end. Only then can the IRS pick your pocket via this penalty. Otherwise, they have under the law no recourse against you. Reply
“If you like your current plan…………………..” UPDATE your information, or you’ll be accused of working for the Chief Executive’s propaganda branch. Reply
Veterans already signed up for VA Healthcare do not have to sign up for Obama Care….VA meets the minimum requirements. Reply
Ha Ha, Veteran, got letter from VA…I don’t have to sign up for the crappy Obamacare…I already have crappy Government medical coverage. Reply
I’m glad there;s some intelligence in this debate, unfortunately its not in this article. You will be taxed on your health coverage, just not yet. So saying you won’t be taxed is a lie by omission. Reply
Hello, Nice blog. Your article gives such an useful information about health insurance.Thanks for sharing. Reply
Ok so after determining that my employer’s coverage isn’t “affordable” I can now purchase from the marketplace or thru an insurance co., I already know I don’t qualify for assistance for that so my question is, if I don’t itemize will there be something to fill out for the premiums I directly because right now premiums come out of my paycheck and are pretaxed lowering my taxable income. Please advise. Reply
Hi Sonia, Yes, if you itemize your tax deductions, you can deduct medical expenses including premiums paid over 10% of your AGI (7.5% if over 65). So for example, if you made $50,000, you can deduct your medical expenses over $5,000 ($50,000 x 10%). Thank you, Lisa Greene-Lewis Reply
1099 misc form is filled by the company to show the miscellaneous incomes like renting, compensation, awards, royalties and many others of the companies. Reply
About all this helpful turbotax blog has done for me, is convince me that I probably ought to fine another way to do my taxes. Reply
Maybe some of you will start seeing the light. OBAMA LIED TO US!!! You will not be able to keep your current insurance because THE EGOMANIC HAS DECIDED HE KNOWS WHAT IS BEST FOR YOU!! Your rates are going up as well as your deductables. The only ones making out on this program are all the freeloaders out there. Reply
It’s not the president’s fault that doctors and insurance companies are idiots. All those people care about is filling their pockets, so of course they want to screw people over out of greed. Reply
I kept my insurance, Blue cross anthem! My rates went down as did my dedutibles. So I guess you are wrong, again!
It’s like car insurance. People have been expected to buy it for decades. It has a purpose, to save you a lot of money in Dr. bills and etc.. I really don’t understand what’s so hard to comprehend. I guess you people who are against having health insurance must love being in debt.
WOW. thanks for helping understand this issue. i was thinking it would effect my 2013 taxes!!!! Reply
You can go to healthcare.gov an dget information on plans, etc. You just can’t enroll because the website is still jacked up but it does have information available. Reply
I find this blog very helpful, but I do wish the admin would filter out all the political posturing. This is not the place for that. Go rant elsewhere, leave this blog for those seeking information about the current tax laws, rather than those who want to continue debating their validity. Reply
My husband and I are both self employed with highly variable income and 3 kids. sometimes we may qualify for subsidies, while other times we may not. If we do not ask for a subsidy to purchase the insurance, and earnings end up falling below the threshold, can we take a credit for that difference when filing our tax returns? Reply
Tamar, When you purchase insurance from the exchange, you will be given the option on how much of the subsidy to apply. If you don’t apply any of the subsidy, it will become a refundable credit on your 2014 tax return. Mary Ellen Reply
If i deny insurance from my work, will I still be penalized, or taxed at the end of the year? I will be getting insurance else where. Reply
My oldest son needs insurance. He can’t even get on the website. It keeps crashing. So he will be penalized ? Even though its not his fault? And he can’t even afford groceries. How us he suppose to pay for insurance? Reply
Kim, Insurance is not required until April 1. If his income is low, he will qualify for subsidies to pay for his insurance, and possibly his medical expenses. Mary Ellen Reply
We buy our insurance through my wife’s employer because it is cheaper than my employers insurance. My boss has to pay $800 a year per person fine for every employee that does not buy his insurance. He is going to take that out of my check. And it goes to $1600 per year in 2015, and higher every year. Can I deduct this from my taxes or am I just screwed by Obamacare? Reply
How much are you saving each year by being under your wife’s employer’s insurance? Is the savings more than what your boss will charge you? If not, then might be a good idea to stay on your employer’s insurance… Reply
Is that LEGAL? I don’t think so but nothing would surprise me these days. However, I can’t believe there is a deduction on your paycheck for employer tax penalty… I thought the idea behind having an EMPLOYER pay the penalty was to convince him to provide insurance. Many employers are opting to pay the penalty because it is cheaper for THEM than it would be to provide insurance. I can’t believe they can legally force you to pay THEIR penalty via your wages. Both of you will still be responsible for SS and medicare taxes on that $800 and you will still be paying both state and federal income tax on that money as well. On the other hand I do think they could DECREASE your salary by $800 per year to offset his cost. This would make more sense for BOTH employer and employee. In that case, you would both be saving on SS and medicare taxes and you wouldn’t be paying the federal and state taxes either. Reply
Companies and businesses do not care who they screw over. All they care about is their bankroll while all of us hard working citizens struggle to succeed in this chaotic world.
I hear you on that one but..after further thought, I don’t understand why this guy would be penalized anyway…he’s opting out HAS INSURANCE. Why would there be a penalty? If someone has insurance elsewhere why would an employer be penalized? I’m not going to worry about this stuff — just going to get my insurance without a subsidy, hope to write it off on my taxes and PRAY, PRAY, PRAY for Divine intervention! I’ve given up on Congressional intervention!
The employer will not be fined if the employee “opts out” of his insurance plan. The only way the employer gets “fined” is if the employee files for the subsidy which is not the case here (the wife’s insurance is less expensive, but not is not through an exchange, and is not eligible for the subsidy. This gentleman needs to contact his State Insurance commissioner, the State Wage and Hour Board and a good attorney!
I make about $50,000 a year for a family of 5. I have insurance through my work for myself currently, however to get if for my family (even the cheapest plan) is about $1,000 a month, or $12,000 a year. That’s 24% of my income. Can I still apply for “Obamacare” even though I’m currently on my school’s insurance since I’m above the 9.5% rule? If so that means I’ve got 2 insurances at the same time. Is that a problem? Is there any way to cancel my insurance with the school I work at. The insurance policies are for 1 year but I don’t know with the new tax reform if that allows you to cancel with your current employer. Thanks. Reply
Me and my husband can’t afford the insurance he gets through work. If he drops the insurance(which he is able in december)can we look into the health insurance marketplace and still get the subsidy or i have to absolutely go with my husband’s one. If we don’t have any insurance how much our penalty will be if our income is 37,000 a year? Reply
All of you people complaining need to actually read how this is going to help people. Why was it ok when bush wanted to do the same thing and the dems voted it down. Do some research before you go bitching. and some of you need to learn to spell Reply
What does it take to qualify for the tax credit? I am a 1099 employee and have to purchase my own insurance. Reply
Lisa not as long as we have Perry in office or any Rep or Tea Party for that matter..Most of us are screwed.. Reply
I didn’t understand the tax credit my yearly income says I can put $248 monthly tax credit toward my health insurance to lower my monthly payment for insurance ..but I have never got that much back on fed tax refund. That’s about $3000.00. Does that mean we will get a larger tax return to help pay for health insurance?? Reply
The way I understand it that will be applied to your ins monthly and you will only be out the difference every month Reply
Hey Turbo Tax, how much did Obama pay you to make this awfully misleading video? Misleading in the sense that it puts a positive spin on obamacare. Reply
Thanks Mike for calling out for responsibility and integrity…woefully lacking to all of America’s peril and demise…The media and all Obama’s “pups” have cost us our very freedom and yet they continue right on worshipping at his pagan altar. NO TurboTaxLisa NobamaDon’tCare. We pay more and get less and you go right on marching in lockstep with the socialit deceiver-in-chief. Reply
Oh my gods! People, our freedoms were at risk for decades. Stop putting the blame on the current president. We’d still be in a spiraling mess even if Romney was in charge.
Sheep, are you suggesting that we were right to be upset and dissatisfied with previous people messing us over but we should not be complaining when this Obama idiot piles on and starts shoving garbage down our throat too? Garbage is garbage, no matter who the originator.
Thank you Turbo Tax for putting out straight talk on the Health Care law. The people complaining are the ones the rest of us are paying for now since they do not have health insurance and then they go to the Emergency Room and don’t pay. We / I end up paying for them. They want something for nothing. The whole concept of auto or health insurance is that everyone puts in their share and most of the time they don’t need it but ….. when we do, the whole group helps pay. Grow up and pay your way. Reply
Who r u kidding? Have u looked at the exemption qualifications? Those people still won’t end up having to pay! One of the exemptions even says you may be exempt if you have a disconnect notice lol Reply
TurboTaxShanneModerator 3 days ago I have also found some information for you about “exemption from the fee”. You can click on the following link and read all of the rules for exemptions. https://www.healthcare.gov/exemptions/ Reply
I’ll have to say I tend to agree with you. My 24 yr old daughter and her husband do have coverage through his work. It’s very expensive and they are young and just starting out, but they have a baby and NEED insurance so they are being responsible and he looked until he found a job that offered insurance. It is a huge chunk out of his paycheck. They don’t get to go out to eat much, or buy clothes or nice vehicles or drink beer or have nice cell phones. They, instead, have insurance. That is what responsible grownups do. He chose the job that offered it. Because they have insurance, they are gonna be broke for a while. But they are not asking anyone else to pay their way!!! That’s the way they were raised!!
some of us don’t make enough ,when I could afford coverage I was happy to get it.now I am not able to pay for it now,it will pull from food or rent,or gas.so which would you tell me to go with out.i have looked at my options with the new health care,there are none I can afford. Reply
Geez, I don’t see how people can’t grasp the concept that having insurance is A LOT CHEAPER than paying a fat Dr. and/or E.R. bill.
Not really. Actually the real truth of you deadbeats. Probably slacked through school too. Now time to pay the piper!
Ignorant? It’s the freaking truth. What’s ignorant is people enjoying their free ride while the rest of us have to cover your rear ends as we try to cover our own.
Jim, your comment is really uncalled for and untruthful to a lot! I work very hard for what little I have and have no insurance offered at where I work! I have never been to an emergency room for care in my life! I do not, like a lot of others have health insurance because it takes everything I make to pay bills and cannot afford it! How nice for you that you can afford insurance! You need to know what you are talking about before you condemn other hard working people! If you think this health care law is for the best for everyone, you need to check your facts! Reply
Sounds like you better pull a 2nd job or find another job that is better and offers good benefits. It’s not that damn hard. As for not going to the ER, there’s always a first time for everything and when you get that huge ass bill, you’ll be wishing you had insurance.
Allergic to sleep: there are many parts to the equation for people – work-family balance is one that is very important to many people. Paying the necessary bills for existance comes first, however, if the parent is not home because of always working, who then raises the children with ethics, personal integrity, & how to be a generally decent person? HMMM? I suppose your children are modelf of society?
Yeah, I pay my bills for existence first and so forth. Life might be tough, but it isn’t that complicated. People need to stop making excuses and get their life straightened out. As for my children, I’m raising them to not be like their mother (whom is living off the government, otherwise known as the hard working tax payers money) and people like you whiners whom can’t seem to grasp logic, common sense, and intelligence.
Allergic to Sheep, you are a self righteous troll! You have done nothing but judge everyone down the line here. You need to get another job ( been there, done that too long!) maybe you wouldn’t have so much time judging other people! You have to have intelligence to give it! Try getting some first!
Your definition of a “judgemental troll” appears to be way off. Don’t get all butt-hurt over the things you can’t comprehend. Your comment appears to be more out of judgment and trolling than mine. I was basically having a conversation over what is sadly the truth and you go all “boo hoo hoo.” It is true that some of my comments were in response to the comments by trolling sheep who don’t really have anything worth saying. They just post their badmouthing on things they have no intelligence or comprehension on.
if you ever get laid off or lose your job lets see how you think then jim.becouse I felt the same way you do until it happened to me.so hope you never lose your job jim Reply
I work and make about 30,000 a year, my husband is to sick to work anymore but has been denied SS or SSI I am insured at work but he has no income and I can not afford to cover him. He has 3 terminal illness. am I going to be penalized for his not having insurance even though he has no income? he smokes so his coverage will be through the roof. Reply
Exactly. The person smoking the cigs has obviously signed his death warrant by wanting to continue smoking and sadly she is allowing it. It’s kinda like slow suicide. But stop the cigs and she might be able to afford insurance.
I have a full time job with benefits. A little over $30k/yr and no debt besides the usual bills. I am thankful for my Pension, 401K, Health Insurance, Vision, Dental, and a wife whom actually works (minimum wage) and helps keep our income straight. I have 2 daughters and 2 cars (which was a $9k loan and was paid off in 9 months). I have $425 rent that includes electric, water, trash, and gas. After paying all my bills (including credit card, car maintenance/insurance, and buying groceries) I still have over $600 in the bank. As for “trolling?” Nah, try instead, “..providing logic, common sense, truth, and intelligence…” Get some!
I too say, stop the cigs and use that money to pay for insurance. You are correct, I am not a smoker, but I lost relatives because of cancer to the lungs, including my Mom! I too pay my way and am tired of the high cost of medical and auto insurance to make up for those who do not have it. Reply
All complaining is going to get any of you is a promotion. I don’t fully understand most anything that goes on when it comes to healthcare furthermore I don’t think that our law makers and insurance companies know either. I don’t know why I started reading all these comments but it helps me come to the realization that everyone is complaining of first world problems. Sorry that you can vent your frustrations through a smart phone or computer. Live your life pay your taxes and shut up about it. I just realized I am a hypocrite and am venting my frustrations through a smart phone. Just know that most Americans are suffering just like me with quadruple the debt of the amount that I have in my checking account premium cable, air conditioning and a running vehicle. Oh how I suffer. Reply
Thanks Turbo Tax Lisa and several others who mentioned the subsidies for those who complain they “Can’t afford insurance”. BTW it is still private insurance companies, with the needy taken care of with ongoing programs. We do not have “Universal Health Care” available in so many other developed countries! Reply
TurboTaxLisa — Please tell me your employer does not endorse that video. There are less argumentative ways to get more and more accurate information to customers, if you are sincerely interested. Call me. Reply
Re video: Host wrong. She made 4 misstatements followed with a valid question which makes it look like DWS endorses all the statements when she responds to the one question. Didn’t you see that? : Panels will tell you what insurance you can buy. Not. : The “exchanges” are to sell co-op insurance (implicitly run by the govt). Not. : employers will drop employee which forces employees to the exchanges. Not. : Please research before broadcasting misinformation. We need a coherent America. Reply
A previous comment has popped a question in my mind. I have custody of my kids and their mom (my ex-wife of course) is on “disability” while getting all that free government support from SS, foodstamps, and state insurance (TennCare). From what the law has been is that I am the only one who can insure my kids since I have custody while she is on all these state funds that are not costing her a penny while she’s avoiding to pay taxes and she even refuses to pay her responsibility to their medical bills. Does the new law require her to add our kids to her insurance and will they accept? Reply
I too have been on disability for the past 6 years, but get no extra subsidies for living or food. I worked all my life and am 65 years old. I paid my share of taxes, so don’t lump all of those on Disability into one category. I can barely get by each month on the little bit I get from SS and my 401K. We need to repeal Obama care and get reasonable help for insurance for those in the lower income bracket. I wish I could work, but totally not possible due to severe back problems and Parkinson’s. If your wife truly has money to help with the medical for your children, then she should be made to do so. Why do the lower income have to pay so much when the people in the White House get paid whether they work or not and get free medical??? Reply
Yes, but there are people who fake the whole disability thing just to get a free ride and easy money. And ObamaCare is also making it where all those government bastards have to sign up as well as the rest of the country. Get it repealed and congress gets off easy. So I vote no on the repeal.
Hi TT Lisa How about folks like us who have moved out of the USA now? Although we do visit our kids once a year or so. We are not forced to buy this are we? Thank You & I still use your product to file Reply
My daughter is 23, does not live with me, and files her own tax return. Currently does not have insurance,may qualify for Medicaid based on her income, only works part time, does not know if she qualifies for insurance from her employer. Would I be forced to add her to my plan thru my employer, which I cannot afford? If she does not get insurance, who pays the penalty, her or me? She is no longer a dependent on my tax return. Reply
I have health insurance, but with the obmadontcare health plan I will no longer be be willing to pay the doubled premium. The tax penalty will be less than the insurance premium. I have carried high deductible health insurance in case of severe illness. Now that the insurance companies cover preexisting conditions, why not just wait and get coverage if I get sick. Reply
I welcome insurance reform I don’t want free insurance just affordable coverage,my husband and I have been tryin to get health insurance for me since 1999 when I was dropped because of having mental health problem now I can’t get health insurance .every time I real of affordable insurance on television r any where else I check its not what they say .they tell me just for myself is 700.00 a month we can’t afford it. I don’t go to the doctor because of the expense. My kids help the best they can but they have there families and my medical and prescription are high if you can tell me a better solution to this I would be interesting in hearing it Reply
I have health insurance through work, but it’s very expensive. I was told there is some tax credit I would be eligible for if the premiums are more than 9%. My insurance premium is about 15% of my gross income. Is this true? Reply
My Question is this. I am a Disabled Vet and my healthcare is covered my the VA, so I’m good. My Wife has coverage through Tricare as she is appointed as my Caregiver through the VA and paid as such. I am not 100% yet so my children arent eligible to be covered under e through Tricare. I am still searching to check vor a company that will cover only my 5 & 7yo without having to pay extra to cover my wife as well. My income is not taxable nor is my wife’s. How does that work than with my children since CHIPS says we have to claim it to them to see if my girls are eligable? Reply
My children are members of a tribe. They have their own healthcare system. Are tribal members exempt from this law because they they have tribal health for one, and their status as a sovereign nation as two? I don’t think technically it is insurance, but they cover all their members health care. Reply
Thank you once again demacrats for taking from the people doing something with their lives to help the ones who aren’t! Good job smh! Reply
OBummercare is simply part of the large increase in Middle Class taxes that this White House has long been seeking. The key to survival for the Middle Class until it can be repealed was written about recently. Here is the link and summary of that article: Daniel Mitchell, whose expertise in tax matters usually has him writing about tax reform, summarizes this interesting piece as follows quoting from the article: The article nonchalantly explains that people may want to reduce their income so they can get more goodies from the government. “People whose 2014 income will be a little too high to get subsidized health insurance from Covered California next year should start thinking now about ways to lower it to increase their odds of getting the valuable tax subsidy. “If they can adjust (their income), they should,” says Karen Pollitz, a senior fellow with the Kaiser Family Foundation. “It’s not cheating, it’s allowed.” Under the Affordable Care Act, if your 2014 income is between 138 and 400 percent of poverty level for your household size, you can purchase health insurance on a state-run exchange (such as Covered California) and receive a federal tax subsidy to offset all or part of your premium. …getting below the 400 percent poverty limit could save many thousands of dollars per year. ” You may be thinking that this is just a theoretical problem, but the article cites a very real example. “To get a subsidy, the couple’s modified adjusted gross income for 2014 income would need to fall below $62,040, which is 400 percent of poverty for a family of two. …Proctor estimates that her 2014 household income will be $64,000, about $2,000 over the limit. If she and her husband could reduce their income to $62,000, they could get a tax subsidy of $1,207 per month to offset the purchase of health care on Covered California. That would reduce the price of a Kaiser Permanente bronze-level plan, similar to the replacement policy she was quoted, to $94 per month from $1,302 per month. Instead of paying more than $15,000 per year, the couple would pay about $1,100.” To put it in even simpler terms, this couple has figured out that they can get almost $14,000 of other people’s money by reducing how much they earn by just $2,000. That, in a nutshell, is the perfect illustration of the welfare state. It tells people that they can get more by producing less. And the system is based on the theory that there will always be some suckers who work hard to provide the subsidies. Reply
The rich? Yeah, which is what this law is supposed to be dealing with as well and why congress members are against it. They don’t want to pay for insurance if we are giving them a free ride. So now that they have to pay, they are pissed and so are the other free riders living off our hard earned money that we pay towards taxes to cover them. Get out of fantasy land and into reality.
Wow!, I have read some of the comments. I am insured through my employer. So I don’t have to worry about signing up. But for those of you who are healthy and young and do not have insurance-and feel that you do not need it. Just the one time you are faced with a major illness the rest of us pay dearly. For those you cannot afford insurance and I work with a number who either work to pay for coverage through employers—-or pay a lot for family coverage. For the individual insurance doesn’t seem to be high, but for those with families and dependents. Hopefully the credits and subsidy given will take care of it. Those of you who are complaining that it is destroying the country, it is socialist— Let me ask you this question—–Have you ever been unemployed for a long period of time—-Have you ever had to struggle in life because of those who continue to take advance of those who apply for basic necessities in life? The financial crisis was caused by people and companies looking to get rich off the backs of the working class people. Oh by the way Obamacare would be paid for by the Medical device tax—-but certain politicians don’t wont it. Why because it take money out to the pockets of those who invent, make, buy and sell such equipment. Again, lower and middle class do not get much of a tax break –but the rich and famous. Let all of the complainers get a life and think about others more than yourself–do your research and open your minds. The affordable health care act is for those who do not have insurance and need assistance to do so. I can understand that. Do we have to pay for it—-Well think about those who get turned away and struggle just to find a job to put food on the table and a roof over there heads. I have a college degree from Uof M but my career has been tanked by the financial greed of a few. I sympathize with those who have to struggle to survive everyday. Most of us are not born with reserves of money and wealthy contacts. Time and Chance happens to us all. I hope all of you do not fall on hard times. Just maybe you might show a little sympathy for the not so greedy in life. Good job on explaining the health care Law Turbo Tax. You have done your part. Have a Good Day!!!! Reply
Sure, lets reward those that sit around and do nothing with their lives. Sounds great. Think I’ll sit around and let others reward me too. What a stupid comment Brittani. Reply
This is going to screw up my credit because I will either end up owing a tax penalty getting evicted or getting my car reposed and I make to much to qualify for Medicare or what ever people that live off the rest of is get! If they would have us a heads up on this I prob wouldn’t have bought such an expensive car or apt because I could have budgeted in insurance this is like the seat belt law… Who I am I hurting by not having insurance I am young heAlthy and no kids wtf! Reply
Then don’t wear your seat belt and don’t pay for health insurance. When you get into a car accident you will be severely injured, and have no insurance to cover you!! Reply
We’ll since I have full coverage I will still have insurance to cover my medical and the last time I wrecked if I would have worn my seat belt it would have sliced my head off. Not much incentive
Not really because as I said that is what my car insurance is for it covers up to 50,000 in medical expenses
Because the “Health Insurance Marketplace” is so screwed up, for lack of a better expression, and likely to remain so for some time, all that we can do is to investigate what information about plans and pricing there is on websites such as https://www.ehealthinsurance.com/ehi/resources/subsidy-calculator#subsidyEstimator http://kff.org/interactive/subsidy-calculator/ From my family data input, the pricing/subsidies which these two websites indicate match fairly closely, in contrast to the current subsidy calculator on the TurboTax website which indicates much larger subsidies. You should also read the following article to see how some, if not many, people will be managing this Brave New World. http://www.sfgate.com/business/networth/article/Lower-2014-income-can-net-huge-health-care-subsidy-4891087.php Reply
Remember, they had to pass it to find out what was in it. Well, those idiot politicians are still finding out.
Brittani, sadly you will not be young and healthy forever. I was young and healthy once, now the only way I can get health insurance to cover a chronic medical condition is through Obamacare. I pray that you, at least, will never have to experience the fear and financial hardship of having to pay medical bills without insurance. Reply
Quit complaining! I can’t work for medical reasons. I worked my whole life and now am on Disability. You try to live on that! You sound like one of those greedy people who want everything, buy everything and never put any money away for a rainy day. Some day you will wish you had. My generation has paid our share into the government. Maybe you need to stop living beyond your income, and have a little more compassion for those less fortunate! Reply
No car insurance covers $50k of medical expenses for yourself or your passengers unless it is Uninsured or Underinsured Bodily injury coverage which is only comes into play if the other vehicle is at fault and they do not have insurance or high enough limits to pay for your or your passengers bodily injury. With healthcare costs, this amount can easily be exhausted. I am an insurance agent and it sounds like you need to speak to yours to clarify what your coverages truly provide. You might be thinking of your bodily injury liability limits but that does not provide coverage for yourself. Reply
I do agree with you though Brittani that we should not be forced to buy health insurance. Besides being forced into it, the deductibles are not affordable. We are not being provided healthcare but health insurance which still comes with many unjusts. I also am in the same boat as you with the plans not being affordable and I live a very meager lifestyle but I also have no debt or loans of any kind.
So what you are saying is that you still want a free ride. People like you are the reason the country is in turmoil while the rest of us hard workers pay taxes that cover you people’s free rides.
My understanding is that the fine/penalty will only be deducted from my refund and will not be added to any tax already owed. Thus, if I have an amount due exclusive of any fine or penalty for not having health insurance, I will not have to pay the fine or penalty correct? Reply
My husband will be on Medicare in 2014, I will not and I choose to have no insurance. Will my penalty be based on my income or on family income? We will be filing jointly. Reply
All you people are complaining about this obamacare and the country is turning into a socialist country, where the heck were all of you during the election? I voted for Romney because he promised to overturn it. It your own faults for voting for owebama, In 2016 do the right thing. Reply
Hopefully the rest of the complainers like myself didn’t vote Obama because u r right if u voted Obama shut up u helped do this to us! Reply
The irony is that I was in the hospital at the time and therefore not able to vote. I called to have the county send someone over for patients to vote but they would not so several votes nationwide are missed by hospital patients. I would not have voted for Obama given the chance to vote at all. I do believe the electoral vote needs to go away. It deters many from voting. EVERY vote should count one by one.
I voted for Romney also. Can’t seem to find anyone who will admit they voted for Obama. He sure got a lot of votes for no one to have voted for him. I think they are to ashamed to admit they were that stupid. Reply
It’s not that they are ashamed its because they know they wont be spending the rest of their life in a concentration camp. So once you are there then you wont have to worry about Obamacare cause you wont be alive long enough to enjoy it..lol. Once the constitution gets changed to allow for a 3rd term then everyone who didnt vote for him will feel the pressure. New World Order.
This is very true. People played into the President’s ploy. I voted for Mitt too, as he is smart business man, who knew this Obama care would obpress the country. We have yet to have a balanced budget. This will take intellegant honest successful who know what it takes to run a business like Mitt Romney who can be trusted to do what is right to create new business, get America back on it’s feet, it won’t happen over night and raising taxes is not the answer. The ways and means committee is a high position that has been played with congressmen who are placed on it to only fail America. Get Rid of the IRS, they have been given to much power to take Americans homes and ruien Americans lives because of penalties and interest an over complicated ever changing tax laws. This is wrong, it’s their Idea of raising taxes on Americans is the big answer to balance a budget, it never has worked. I think anyone who is in the highly position position that effects our nation as a whole should have their motives checked, and do they have the qualifications or just enjoy being in a position of power. Americans deserve better than we have gotten out of elected government. Before anything is done, jobs should have been first before Obama care, getting America back on its feet first. Why wait on this,No one is going to take Obama care serious. We all deserve lower health care costs with no stipulations or punishment attached to it. I’m tired of government stupid decsisions. WE the people don’t need government hurting us any longer. I say if we continue to allow a President to spit on the constitution that needs to go back in place where it was in the beginning, as these men were honest and wanted the best for America. Reply
“your fault” you hit it right on the nose. So many people who don’t pay attention to what’s going on until they realize they are living in socialism. History is repeating itself! How do you like the change now? Too late! These are scary times and everyone needs to pay attention to what’s happening to our country. Reply
What about if we have approved coverage we gain through our employer? Our rates have increased and so has my tax bracket this year- somehow my bring home pay is less than before my raise-since increase in premiums. Do I not receive a tax credit? Only those who purchase through the marketplace will be eligible? We are paying more for the other to use market place I would think we would be eligible for this credit also. I understand TurboTax doesn’t make the laws or impact the laws. Just want to know how this tax credit is effecting me Reply
Sarah, Only those who buy through the exchanges are eligible for the credits. You can see if other members of your household qualify for the credit through the exchange. Because you have coverage through your employer you will not qualify for the credit even if you choose to buy through the exchange. Please read more here – https://www.healthcare.gov/how-does-the-affordable-care-act-affect-me/ Also visit -http://www.TurboTaxAnswerXchange.com for more answers to your specific health care questions. Mary Ellen Reply
Hi Terrie, Right. Your receive a penalty for not having health insurance by March 31, 2014 in 2014, but the penalty is not assessed until 2015 when you file your 2014 taxes. For more answers to your specific health care questions, visit http://www.TurboTaxAnswerXchangec.com Thank you, Lisa Greene-Lewis Reply
No penalty if you have a balance due, only if you have a refund – and it is far less expensive than buying insurance.
As for the penalty, ignoring for the moment the implications of the court challenges to the administrative interpretation by the DHS/IRS, avoiding it will also mean managing ones withheld or estimated taxes more carefully so that one is not left with a refund position at year’s end. Only then can the IRS pick your pocket via this penalty. Otherwise, they have under the law no recourse against you.
I have insurance through my employer. My spouse has insurance through her employer. There is a chance that she could lose her insurance in the near future from her employer. What do we do for her? If she tries to get on my insurance the cost will be too high for our budget. Reply
I live in Michigan with my 2 kids and 1 in college not living with me.They are currently on Medicaid but they are threatening taking it away because I wont open a child support action against my husband who now lives and works in California. We are still together and he helps me financially but we file taxes separately. Will I face the same problems with this health care reform act? Reply
Both my husband and I have health insurance through our employers. I am wondering if way are able to “shop” and compare. In other words, If we find that the market place insurance premiums are less than our employers, can we choose that instead? Reply
My daughters-24 and 26- both are enrolled American Indians and they get medical coverage through tribal-do they need to get other health Insurance thru this Obamacare thing and if they don’t will they have to pay a penalty Reply
My husband and I are legally separated. We share custody of our 2 kids, who are currently included on his insurance policy. I have been uninsured due to a pre-existing condition. We each filed as “head of household” last year, and he claimed both kids as dependents. I would like to get a policy through the ACA Marketplace. Since the kids live with me (slightly more than) 50% of the time, may I claim them as members of my household, which will qualify me for a subsidy? Or do I need to claim them as dependents to do so? If I need to claim them as dependents, would that be starting in 2013 or 2014? Thank you! Reply
My employer supplies health ins but being low income and paying $90. Per month copau plis med copay is killing me. Can I get help with this? Reply
I’m a teacher, and I have insurance through work. I make about $50,000 a year for a family of 5. I believe I qualify financially for Obamacare, but I don’t understand how it would work since I already have insurance through my work. Do I have an option to cancel my insurance with my work (usually you enroll for a full year)? Can I have my normal insurance and Obamacare? I need to get on before March 31st (I believe), or I’ll lose out on another year. How do I work this. Reply
I do not qualify for Medicaid but my children have it.One of the children was getting SSI he no longer receives it.He does not have insurance.Do I need to get coverage for my self and him? I cannot afford the coverage on the job. Reply
You have to have insurance by 2014. If your employer offers you insurance, then you’ll have to sign up with them. You can always try the exchanges, but, because your employer provides the option for you to get health insurance through them, you can not get subsidized if you elect to go through the exchanges. If you can afford neither, then you can elect to pay the pay the penalty (tax) next year, but you’ll still not have health insurance for you or your child. Sorry if this is bad news. Reply
Yes EVERYONE has to have Insurance and if you don’t it we get penalized on our taxes, it excludes Medicaid, Medicare and people who already have Insurance. Reply
HI Tina, Yes, you will have to purchase health insurance for you and your son. Your son may be eligible for Medicaid or the Children’s Health Insurance Program. Please read more here https://www.healthcare.gov/how-does-the-affordable-care-act-affect-me/ Also visit http://www.TurboTaxAnswerXchange.com for more answers to your specific health care questions. Thank you, Lisa Greene-Lewis Reply
Nice work, Lisa. I just found your 30 Sep article. You cover information I had to get from about 12 sources before I found your very informative explanation of Obama Care. Thanks – hope you get a pay raise for excellent work you are doing. Al Reply
What happens to my freedom when you go to the emergency room or worse yet, a hospital stay that you can’t afford to pay for? I’ll tell you what happens, I (and everyone else) has to pay more for our healthcare to make-up for you. And that my friend infringes on my freedom. Reply
U still r paying for people how can’t afford the insurance check into it that’s what this is all about!
JackL Well RickE, if your going to bring that stupid line of thinking in then tell the rest of it. Like when somebody breaks the law and gets sent to prison for it I and you with everybody else pays for it ( don’t we all.) How about insurance itself when you send any of your bills in to make a claim everybody pays for it ( don’t we all). You Liberal Idiot !!!!
As someone directly involved in the healthcare industry, the sad fact is that almost all non-insured or under-insured people in this country did, in fact, receive medical care when needed. Most hospitals provide health care to the indigent because, in many cases, they are faith-based organizations that have a mission to provide the same quality medical care to anyone who comes to them. You are right that, in a sense, everyone who paid insurance had to pay a higher amount for that to happen. So the real travesty is that by the government mandating medical coverage (which will result in almost no significant change in the number of individuals actually receiving medical care), they have added, by one estimate, half a billion dollars in annual costs just for the government jobs created to oversee this massive endeavor going forward – dollars that DO NOT PROVIDE ANY DIRECT MEDICAL CARE – JUST BUREACRACY. A medical insurance broker, who represents every major insurance company in this country, told me that the insurance companies have told him that people who have medical coverage will have their premiums go up by a minimum of 100% to as high as 400%. Everyone, even if they are a single male, will be required to pay for insurance that includes maternity benefits, for example. This is what DavidA meant by losing our freedom. So you, Ricky my friend – I hope you enjoy your freedom as you pay – starting next year – at least double what you were paying before Obamacare.
Yes, the enslavement movement has been building for decades. But to correct some sheep, would you rather pay for people who are not really disabled and are just soaking up the free insurance, SS, unemployment, and foodstamps cause they are too lazy to get off their butts and get a job or would you rather help those who are truly in need? It is way cheaper to have insurance so that you don’t have to pay the extra high costs of Dr.s and ERs, but why should we have to pay for people who just make excuses for not getting a job with insurance? That has been much worse than the new law that was passed. Reply
that had been abvious since about the 1980’s and yet the people keep electing those who think that govt is the answer to anything when more often than not it is the key to the problem. Reply
Enslaved like people in Canada, Australia, Massachusetts, not to mention Americans over 65. Maybe you will be able to get some mental health services. Reply
I read in the healthcare reform act that it is $90,000+ for a family of three before no subsidies are applied. Reply
Hi Ashley, The amount used depends on which years federal poverty guidelines were used. Thank you, Lisa Greene-Lewis
I’m a senior on Medicare with heavy health care costs. Is it true that out-of- pocket costs will now be deductible only above 10% of my adjusted gross income? Reply
Hi Bill, Yes, the medical expense deduction threshold has now increased to 10%, so you can deduct your medical expenses over 10% of your adjusted gross income. For more answers to your specific health care questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
Hi, Are you referring to the medical expense deduction? If so, if you are 65 and over the medical expense deduction threshold is still 7.5%, if you are under 65 the medical expense deduction threshold has increased to 10%. Thank you, Lisa Greene-Lewis
I used Turbo Tax for years, but last year they failed to deliver my Federal return, i am still waiting for it?….Anyone can help me? Thanks. Reply
Since my wife and I will be paying more in insurance costs per Year ($4500) than what the penalty will be for the year ($1200). Wouldn’t it make sense to drop insurance all together, and pick up an insurance policy after the fact. Considering you can not be denied insurance for a pre-existing condition (Cancer, illness, etc)? Reply
There is a difference between a pre-existing condition and a new diagnosis or injury. A pre-existing condition is a known condition. The simple answer is No. The window to enroll is not year round. And the insurance doesn’t have to cover a new injury or diagnosis that you chose to get insurance for just after the fact. The whole idea of the Affordable Care Act is that if people only get insurance when they need it and not before that, then only sick people would have insurance. And no one would be able to afford those premiums. Insurance only works when people are pooled together so everyone pays a little so that when someone needs coverage that person doesn’t get slammed with charges. Insurance only works with shared risk. Reply
Nope, cause you’d be paying twice (or more) that cost per year with just the Dr. and ER bills alone. But you have a right to find something cheaper……, which is one of the whole points of the new law. Reply
That actually makes sense in a horrible sort of way. If you are young and healthy, why not just pay the penalty until such time you find out you are going to start incurring major health bills? Pre-existing conditions will no longer make you ineligible, after all. You could even put an equal amount ($1200) or greater away in a savings acct every year for emergencies and still come out ahead over the new insurance premiums. Is that legal? Reply
Myself and my 32 yr old disabled son who is on SSI live with my ex husband (who is also his father). When I did his taxes last year he was Head of Household and we were dependents, with the Affordable Health Care Act, it has a question do I want to let him take a tax break or not. Will that mean he would have to buy my insurance even tho we are not married? Reply
Hi Laura, You ex-husband would not have to pay for your insurance, but if you are a dependent on his tax return, and you do not have insurance, he would have to pay the penalty of $95 or 1% of his income, whichever is greater. His income will be included in your household income for determining if you are eligible for any credits or other benefits for paying for your insurance. This will also apply to your son if he does not have insurance. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
Hi, You do not have to get additional insurance because you are covered by Medicare. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
My ex is required to cover both our children under his insurance. But according to our divorce decree, he can claim one child on his taxes and I can claim the other. I’m afraid the IRS will be confused and fine me. HELP! Reply
Hi Ekatarina, The insurance companies will be providing information to each of us (and probably the IRS) about who is covered. As long as the kids are covered, you should not have to worry about penalties. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
Hi, I lost my job after 20 years , along with my health care and retirement. Am I going to have to pay a penalty when I have no income at all ? Reply
Here is the problem I also lost my good paying job after 20 years…did not even consider Medicare, food stamps or any other government subsidy. Why, I like to work….went out and obtained another job, make very little money but I take care of me…..cut back on the luxuries
Hi Michael, You should apply for coverage on the Marketplace for your state. If your income is low, you will qualify for Medicaid or for tax credits to help pay for your coverage. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
What if an employer says he is providing his/her employees insurance, taking it out of their weekly paychecks, and is defaulting on the insurance payments to the point that the employees are receiving cancellation notices. Do the employess get penalized for the employers financial issues if the insurance gets cancelled? Reply
You need to contact your state’s employment regulatory agency. What you are describing is illegal. Reply
Hi Wendy, Everyone needs to have medical insurance. If your employer does not provide it and you do not qualify for Medicare, you will need to get coverage. You can apply for coverage on the Marketplace for your state. If you income is low, you will qualify for credits to pay for all or part of your premiums. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
Heaven help us if we don’t stop this steady march to progressiveism/socialism. America will not be recognizable and most will exclaim, “Why didn’t you tell us it was going to be be this way!” The crony capitalists are getting stronger and the middle class is getting crushed. There are only a very few in Washington that are REALLY trying to stop this onslaught. Most are going-along to get along. Most are trying to retain their political power. They bring sticks to a gunfight. Reply
When all you have is gross generalizations, exaggerations, and name calling…It’s usually the case that you haven’t bothered to find out the facts and believe the people who are counting on you to make a rash instead of informed decision. There are legit arguments on both sides. Relying on bumper sticker talking points and shock jocks won’t get you there. Reply
I am a veteran enrolled in VA Health Care. My sources of income are VA Disability Pension $568/mo. and SS $1096/mo.. Do I need to purchase health insurance? Reply
Hi Mike, If you already have health care through the VA, you don’t need to purchase health insurance through the Marketplace. For more answers to your specific health care questions, visit http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
I am a small business owner with no employees will this make my insurance any less expensive? and where do I go to purchase insurance? Reply
You’re insane if you think it’s not broken. Hospitals and medical facilities are going bankrupt. .. there is no money because of all these self pay people with no insurance I may not agree with the whole policy, but thank god someone’s doing something about it! Reply
Hi William, No, if you already have Medicare you don’t need to purchase insurance. For more answers to your specific health care questions, visit http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
Obamacare is a nightmare. Just another way for the government to pick our pockets and tell us what to do. Not what our founding fathers intended. Reply
I checked out my options by using the Kaiser calculator. I am at 97% of the poverty line. I am single, and have my 18 year old son living with me. I live in Iowa (they have not expanded medicaid). The information I am getting is that I can’t get medicaid, and there would be no subsidy for me because my income is too low. It also shows that I would pay $300.00 per month, with no help. I am just a bit more than confused here. Help! Reply
You don’t qualify for medicaid, nor does your son. Your son is over 18, and you would only be covered in this situation if you were pregnant. However, I’m not sure where you got the information that you don’t qualify for the subsidy. If you make up to 400% of poverty guidelines, you qualify for the subsidy. Here is a link to turbo-tax’s calculator to tell you how much you would have to pay per month based on your circumstances. It will also tell you how much your tax penalty would be if you DON’T pay for insurance. https://blog.turbotax.intuit.com/2013/03/27/turbotax-health-care-eligibility-calculator/?cid=em_28704_&903&002 Reply
Here’s a link to information on the income levels you need to get assistance for healthcare in Iowa: http://medicaidexpansion.com/medicaid-expansion-iowa/ It looks like you will qualify for Medicaid if you are at 97% of the poverty level. Another thing that I don’t see mentioned much but is specified by the new law is that if the cheapest plan available to you is more than 8% of your income, you may get a waiver from the mandate. http://www.schoolhealthcenters.org/top-10-things-you-need-to-know-about-the-affordable-care-act/ Reply
Helpful article. However, does not cover the extra Medicare/Medicaid taxes for higher income taxpayers. Reply
I would like to do a comparison with the insurance my spouse gets from his employer with what is available on the marketplace. I signed up and have an account now but they still want more information. Is there any way we can find out without having to give so much information???? Reply
I have medicare & medi-cal because I am a bi-lateral amputee, however, this Summer I had to travel three different times to visit doctors. The travel was 1300 miles for each trip, I had to pay for rental cars and gas, as well as pay for parking and motel fees. Is this travel expense tax deductible? Reply
Until April of 2012, I had a job that paid well. Upon losing that job, I took COBRA medical. To make the COBRA premiums, I cashed in my 401k. Since I was only 53, I paid penalties and had to count the 401k distribution as income. As a result, my income for 2012 (the last time we filed taxes) was $108,000. The job I took in June of 2012 was a significant decrease in pay. I lost the job in August of this year, and am now collecting unemployment benefits. With wages and unemployment, I expect to have an income of around $30,000 this year. My wife receives a litter over $1000 per month in social security retirement. This brings our income for 2013 to about $42000. Being unemployed, I don’t know what my income will be for next year. Also, my wife has terminal cancer. Of course, we pray that she will live well into next year.. However, when she dies, her social security benefits will stop. When signing up for insurance through the exchange, one of the first questions is regarding expected income for 2014. My income could be as low as $20,000 if I don’t find a job and my wife passes soon, or could be in excess of $100,000 if I find a good job. What should I use as a estimated 2014 income when signing up through the exchange? Reply
I own a home and my bills are 3-500 a month more than I make per month or what my income is from the small business I run out of my home, When your in business for yourself you don’t receive a pay check every week, Your held hostage to what sales you make, per month & what money you collect on a 30 day due date. If your lucky your customers pay before the due date. If I’m 300-500 dollars in the hole each month, how in the heck can I afford health Insurance, Medical won’t help or Insure you when you own Your own home or property. Please don’t be a smart ass when the economy was good I had Health Ins. Things are bad So how can I hook up with a Health Insurance plan when the cheapest I found is still 199 per month, if I’m already 500 per month over my bills now, and I don’t think its right to be threaten to pay penalties because you can’t afford health insurance??? I think that’s total B S, how the heck am I going to add another 200 to it? The money tree in back yard is already plucked. Reply
Many companies are discontinuing employee coverage because the cost to them is going way up because of Obama. So just because you currently have insurance through an employee does not mean you are all set. So these folks are being left out in the cold on there own to procure the new expensive polices with extremely high deductibles under the “non-affordable care act” Just one of many incredible problems with this law. God help us all. Reply
I own a home and my bills are 3-500 a month more per month than I make or what my income is from the small business I run out of my home, When your in business for yourself you don’t receive a pay check every week, Your held hostage to what sales you make, per month & what money you collect on a 30 day due date. If your lucky your customers pay before the due date. If I’m 300-500 dollars in the hole each how can I afford health Insurance, Medical won’t help or Insure you when you own property. So how can I hook up with a Health Insurance plan when the cheapest I found is still 199 per month, if I’m already 500 over my bills how the heck am I going to add another 200 to it? The money tree in back yard is already plucked. Reply
I have health insurance but my children don’t. It is too high to put them on mine. I do not have extra month in my budget to pay for health insurance and I have tried applying for Chip and they denied me saying I make to much. I don’t get any help from my kids dads either. So i am going to be forced to do this or I have to pay a penalty? I mean what makes them think I have the money for a penalty when I don’t have the month in my budget for health insurance for my children. If I could afford it my kids would already be on it. In my custody papers my kids fathers are responsible for their medical insurance. So does that mean the fathers will be penalized or me? Reply
Come November 1st, paying the same premium I did in 2012/13, will equate to a 200% increase in my deductible, 200% increase in my Rx deductible, and, get this, 1100% increase in my out-of-pocket exposure. What they failed to tell many of us is “if you get really sick you won’t actually get AFFORDABLE HEALTHCARE under this ACT” … they always leave out the really important fine print. I share this here as another means to educate others. Reply
I cover my husband, 24 and 25 year old sons on my health plan. Do they still have to apply for the Affordable Care Health Plan, even though they work full time or can I continue to cover them to age 26 and then they can apply when their cut off my plan? Reply
Hi Claressa, Yes, if you already are covering them you do not have to purchase health insurance in the Marketplace. Once they turn 26, they will have to purchase insurance. Thank you, Lisa Greene-Lewis Reply
I qualified for Washington state Apple Health for adults (Medicaid). They wanted only earned income and dividend income and not interest from cd’s to determine if I was eligible. Do you know if income from capital gains on sale of stocks goes toward eligibility? I have gotten both yes and no answers when calling the insurance marketplace. Reply
You are blanketing all policies within the same category. You should have advised her to check with certain limitations within her policy to ensure that beyond your stated age limitations her sons may/may not be included in her policy. Depending on how it is written, there are certain policies that allow beyond that age for them to be included with your policy and premiums would be adjusted accordingly. Be careful of blanket statements that one situation covers all. With certain policies older children may still be included within the policy, each situation is different Reply
I do not qualify for any help on getting insurance, ie C.H.I.P.s or Medicaid. ( I do not believe in “free” anything). I do not have the money to pay for the forced health insurance, so now I am going to be fined for it. I hope this changes soon because it is wrong that parts of my paycheck are going to others to get insurance for free while I well be fined for not having the money to afford it. Amazing they think we have a money tree to get this extra money from. Do you fore see any solutions that many of us are going to face? Is it true we well start having our license taken, property tax go up, home foreclosed on, bank accounts with leans on it, etc? Ver worried! Reply
We already pay a huge amount for tose people who do not have insurance. This is especially true when they visit the ER with a major illness or injury. Premiums go up and healthcare costs rise. The 80/20 rule will help ensure that what we pay will towards the cost of coverage and not line the Picts of CEO’s. it will protect people from foreclosure when a hospital puts a lien on your home. There are far more benefits to the ACA if you just looks at wat its about. As far as getting something for “free”, you are not. Everyone now pays for insurance. Reply
I see this affordable care act/Obama Care, destroying not only may health further than it already is; and turning country in to a socialist country, and I will go as far to say a third world country. I would also confess my fear that Obama is going no where. I believe that he will figure out a way to stay our commander and Chief for life. He. Believes he is royalty already doing what he wishes without consent of the American people. Really what makes you think he will ever step down no matter how many elections we hold. I watch him say the other night on Fox News: “You don’t like the new law, then you run for office. Right, he has successfully bulldozed down the Republican party and brain washed the Democrats, people we are screwed! Reply
Well, certainly the ACA is not perfect, but I hope it will be flexible enough to change. As far as Mr. Obama is concerned, I think he is too liberal, yes, but he DID win the election. I don’t see any sign of him making himself dictator. There are some conspiracy theorists who would say so, but I would say….they are very wrong, and are scamming us. I think the Tea Party is absolutely wrong in this debate so far. Thank you for listening.
When good people get complacent is when the hammer strikes. Not even thinking we are headed towards socialism is exactly what is wanted. You won’t see it coming until it is too late. You really need to consider all scenarios.
Rhonda, the key word for you is “fear”. You are the perfect person to have if you want to influence someone with propaganda. You can “picture” all kinds of crazy things happening. You “believe” all kinds of bad things will happen. But offer nothing to back it up except a misquote by a news station that has been called out on misquoting people many times. And, newsflash, you have lived your whole life in a socialist country. In particular, a social democracy. Don’t mix up communism and totalitarianism with socialism. Public schools, public roads, public parks, the Hoover damn, anti-monopoly regulation, electric power grid, Social Security, safety regulation, USDA meat inspections, police and firemen, public sewers, NASA, air traffic controllers, etc. All government controlled socialist ideas.
A socialist economic system consists of a system of production and distribution organised to directly satisfy economic demands and human needs, so that goods and services are produced directly for use instead of for private profit driven by the accumulation of capital. Sounds like Medicare and Social Security! They provide services for use instead of for private profit. Are you OK with those programs?
I’m not totally for the bill, but not totally against it. I believe that it should have been available for those, but no penalty associated with not having the insurance. However, I think everyone need to have health insurance. It’s really a no brainer. I’d much rather have my health, than the newest electronics, Christmas Gifts, A party, A soda, etc… Some of us have our priorities in the wrong place. What happens when you have an emergency go to the hospital and follow-ups with the doctor, specialist, etc… Then I have to foot your bill and mine. FAIR? However, I really don’t mind! Its the Christian Values beset in me and I guess that’s what makes the world go round!! I really can’t afford it, and it just went up for my family and I, from $200 to $250.00/mth (Blue Cross Blue Shield of Montana), but there’s programs to help you pay for it like LAhipp. I am presently trying to apply for assistance with premiums. Maybe it would work.. maybe it won’t. Either way… GOD WILL BLESS ALL OF US!!! Reply
Hi Lisa, you said you don’t believe in free anything which is understandable but if your paying for it out of your check then it isn’t free… Reply
Yes L Williams – you are so right! I have a health fund where I have funds saved to pay for my medical expenses – I have never received free medical care but always carried my own finances in this area. Medical costs are so much less if you are paying out of pocket rather than going thru an insurance plan or a gov medical plan – for what Obamacare wants to charge me for my insurance, I save more than that now for my med needs – other than savinng some of my privacy and not paying into a program I am totally against – what incentive do I have for signing up for this gov controlled program? And I live in a state that has elected NOT to join into the program, so our low wage earners are not able to apply for a medicaid program – and even so, thru our state taxes, we will still be paying for those with no insurance – this ACA does nothing for our state –
Interesting that no one answered your comment. I have used Turbo Tax for years. This comment, reply, and the video above, lead me to believe that Turbo Tax, supports this oscamacare act, and that they possibly do not help us get the most money back on our taxes. I did see that they were being sued in a class action law suit. So is this company part of the liberal political movement as well? If not then why is no one answering the questions from the people on here that are saying what a huge problem this un taxed, better coverage, free healthcare plan is? Reply
Hi, We are answering comments and stating facts about the law only. You are correct we do not comment on any question that requires a biased opinion. That would be “political” and we don’t get into political conversation. Please feel free to continue to ask questions specific to health care and your taxes. You can also find answers to those specific questions at http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis
My question wasn’t answered by turbo tax. I asked how will the IRS know if we didn’t get the insurance? I’m still waiting for that answer.
Hi Frances, Health insurance providers will be providing you proof of your insurance and if you have employer-provided insurance that information will be reported to the IRS as well. This will also be handled on your 2014 taxes when you file in 2015. This is taken directly from the IRS: The individual shared responsibility provision goes into effect in 2014. You will not have to account for coverage or exemptions or to make any payments until you file your 2014 federal income tax return in 2015. Information will be made available later about how the income tax return will take account of coverage and exemptions. Insurers will be required to provide everyone that they cover each year with information that will help them demonstrate they had coverage beginning with the 2015 tax year. http://www.irs.gov/uac/Questions-and-Answers-on-the-Individual-Shared-Responsibility-Provision For more answers to you specific health insurance questions, visit http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis
How the spin doctors have pressed buttons to make the word “liberal” dirty to some as well “conservative” to others, I know people who I believe would vote for Hitler if he was affiliated with their preferred party. The Office of President has term limits, two terms and that is it your out next election. Does anyone still believe the Ultra Rich Power Players really care what party controls the White House? Or the Congress? Or the Senate? Perhaps the time for law changes in how Congressional Districts are drawn as well as term limits for all elected officials has come..perhaps the way candidates are selected by parties needs to change as each Party is most interested in where their base is to hold on to those seats forever, things have to change for sure, the American people might come together be less divided, I used Turbo Tax for the first time last year, paying them money to submit my tax forms now seems silly, they along with other such companies, make millions from low and middle class Americans, well what is left of the middle class anyway.
Seeing as you have no health insurance, have no ability to pay for health insurance, and do not believe in “free anything,” I’m wondering what you would do in the event that you fell and broke a leg. Would you pay the $75,000 hospital bill with a check? Would you refuse treatment and Mcguyver a homemade splint/cast? No. No you would probably go to the ER, accept treatment, and subsequently file bankruptcy. Being as you don’t have the funds necessary to afford insurance, If you did, in fact, try to pay the enormous medical bills, you would probably chip away at about 10% before the debt was passed on to your children. But hey, this is all scare tactic pessimism right? Nothing bad will ever happen to you. Reply
Go to healthcare.gov you will get a Tax credit to pay for your premiums. If you make to much to get the credit then You should be able to afford. I was surprised To see the income levels they go by.A family Of 5 can make more than 100 thousan To get the credit. I was very pleased with My credit Reply
Why do you not have the money to afford it? If you don’t make enough then you will get subsidized. Or do you have some extraordinary hardship that takes up all your money? Or are you saying you can’t afford it because you don’t want to? You are already paying for people who don’t have insurance. Our tax money covers the people who can’t afford it when they are hospitalized or go to the emergency room. We also pay for it with higher health care costs to make up for what the government doesn’t reimburse for them. The difference now is that someone with a treatable illness is more likely to get it taken care of before (10s of dollars) it is a hospitalization (10s of thousands of dollars). And if someone does go to the hospital, the insurance covers it instead of the tax payer and increased health care costs for everyone else. Not to mention a stronger economy with less missed work and less money diverted to sickness and injury. And don’t think of things as “Free”. There is a benefit to society for the things you think of as “free”. All of society benefits when helping people when they are down so they can get back up again. Instead of leaving them down, never to get back up again. If everyone who fell out of the middle class for a while stayed out of the middle class it would disappear over time. And if people who are poor never got help when they needed it, they would have little chance of becoming the middle class. Reply
Ok Turbo Tax, let me try this in an un-political way. I work. I pay taxes so others can get health care. I do not have the money to buy health care for my family and now I well be fined. My estimated health care policy would be $350 per month. What do the many people like me do? Reply
Because the “Health Insurance Marketplace” is so screwed up, for lack of a better expression, and likely to remain so for some time, all that we can do is to investigate what information about plans and pricing there is on websites such as https://www.ehealthinsurance.com/ehi/resources/subsidy-calculator#subsidyEstimator http://kff.org/interactive/subsidy-calculator/ From my family data input, the pricing/subsidies which these two websites indicate match fairly closely, in contrast to the current subsidy calculator on the TurboTax website which indicates much larger subsidies. You should also read the following article to see how some, if not many, people will be managing this Brave New World. http://www.sfgate.com/business/networth/article/Lower-2014-income-can-net-huge-health-care-subsidy-4891087.php
That would worry me, too. Do you live in a state that did not expand medicaid to cover those who fall in the coverage gap? The ACA does specify that if the cost of the cheapest available (bronze) policy exceeds 8% of your income (I assume that’s your adjusted gross income), then you are exempt and will not be fined. Is the $350 per month with a subsidy or do you not qualify for a subsidy? If you can reduce your adjusted gross income, you can perhaps qualify for a subsidy (or a larger subsidy) to make it more affordable. Contributions to a 401(k) or an IRA as well as student loan interest, tuition, and fees can all decrease your adjusted gross income. There are probably other ways, too, but you’d have to ask someone who knows more. (Turbo Tax, are you listening? ) Unless your family earns a lot of money – more than 400% over the poverty level – you should be able to get some help. For myself, I’ll have to pay about $300 for a Silver plan after my subsidy, but that’s a far cry better than the $700 per month my family was paying before and than the $600 just for me due to a pre-existing condition, so I’m not complaining.
Lisa, here’s a neutral website that may help: http://www.webmd.com/health-insurance/20130920/who-will-help-enroll-in-insurance-marketplace There are several pages of info, so you can explore the whole site. Keep in mind that some states are not allowing the navigators to advertise or otherwise let people know they are available to help (go figure), so you may need to seek them out. Hope this helps and that you can find an affordable policy. Being uninsured is scary.
Lisa, your estimated health care policy as you say is $350 per month. Did you actually go beyond that and see whether or not you qualify for a subsidy? Did it actually say you don’t qualify for a subsidy?
I have a family of 4, my children have medicaid but myself and my husband do not. I work less than 24 hrs a week and cannot afford insurance for us. Medicaid wont cover us, what should I do?? I work but not enough and our total household income is less than 15,000. Reply
Hi Catherine, You should check the marketplace for your state. With your low income and family size, you and your husband should qualify for assistance in obtaining insurance, or for Medicaid. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
Find yourself a large sturdy box that will house your entire family and set it up a beach somewhere. That is what we are doing when all the sxxx hits the fan. Good luck sweet heart you are going to need it. Reply
If you make below a certain amount per year (around $9700 if you’re single with no dependents) you can get an exemption from having to buy insurance. If you make around $10,000 a year or below you can be covered by Medicaid if your state expanded Medicaid. If you make 12,000 and above you’ll qualify for a subsidy to entirely cover or nearly cover your cost for insurance. Google Kaiser Foundation calculator to get an estimate of what the health care plans will cost you. Reply
will you help me please? This health care is hard for me to understand. you sent an e-mail before telling me that my tax breaks exceed my cost of my ins. but I can find it. Reply
to all remember Congress didnt give the IRS the power to collect this but you will receive nasty letters from them but they cant enforce it they made sure of this when they passed the bill . Reply
interesting. Im trying to find out what the actual penelty is since i do not have an extra hundred dollars a month, Reply
Hi, If you don’t have insurance by March 31, 2014 and you are required to purchase insurance, you will receive a penalty of $95 per adult in your household, $47.50 per child, capped at $285 per household or 1% of your income if your income is over $20,000 if you’re single and over $55,000 if you’re married. Our calculator at http://www.TurboTaxAnswerXchange.com will give you an estimate of the amount. Thank you, Lisa Greene-Lewis
start by deleading social networkings going off the grid and the famous buy ins cancel ins switch ins the way people due with car insurerance get agood safe remove all ties with banking cant levy nothing i got real wise over the yrs myself and familys delt with the f@# gov and state laws u should have seen this back in march when the as****h& 2010 talking about it and the idiots still voted for him 2nd term but the penaty is the best way to go so far or find the islands as primary residence speaking from i have dual citizenship know how to use it impeachment of the president ANYBODY REMEMBER IT and last time we all used it still havent seen a org to start one looking at my screen name tells a story. in ending good luck and stay on top of it IRS cannot threaten you for this or hold back refunds for wages on your tax form very seperate issues. paying income tax vs paying health care. why wasnt voted on by the people CAUSE WE WOULD NOT PASS IT . and they talked about how the mafia extorts money and least they can run a bussiness and not go in debt
If you don’t like the plan, say so in an understandable way….I can’t tell what you are trying to say. I THINK you don’t like it, but I can’t even tell that for sure….
I’ll make it simple for your understanding, If I don’t qualify for refinancing my home?, because I don’t show enough income, how the heck can I afford Medical Insurance???, when I’m over 300-500 a month in paying my bills? You mean to tell me you can’t do the math? If someone’s 500 a month in paying out what they owe, and the Law says at my age over 50, you have to purchase medical Insurance, cheapest at my age being 198.00 per month, 500 + 198.00 = 698 per month = bankruptcy.. You can’t figure out what I’m saying here you must be one of jerry’s kids?????? It’s a no Brainer.
Try this link to turbo-tax’s penalty/payment calculator. https://blog.turbotax.intuit.com/2013/03/27/turbotax-health-care-eligibility-calculator/?cid=em_28704_&903&002
As for the penalty, ignoring for the moment the implications of the court challenges to the administrative interpretation by the DHS/IRS, avoiding it will also mean managing ones withheld or estimated taxes more carefully so that one is not left with a refund position at year’s end. Only then can the IRS pick your pocket via this penalty. Otherwise, they have under the law no recourse against you.
That makes since because “they” said that it would not be a tax but a penalty. Still can not figure out why IRS is even involved in this anyway. Reply
The Supreme Court ruled that it was only constitutional because it was a tax. So the White House can either say it is constitutional (and therefore a tax) or it is unconstitutional (and therefor a penalty).
If you do your taxes right and don’t get a refund, then they can;t take a thing from you,,, send me bills all you want the SCOTUS said they can only take from your tax refund… so do your taxes right and don’t have a refund due that they can get there hands on
My husband works part time and he has been insured individually. Can he still apply for health insurance under the Obama care or does he have to go on my policy at work since he is offered insurance even thou it is more expensive? Reply
Hi, You husband does not have to go on your policy. He can check out his options on the Marketplace and determine the best option, including the policy he currently has. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
The calculations say that a married couple with two children under age 26 do not qualify for any aid what-so-ever and that the cheapest health coverage possible is over $1,900 a month…..family income was $34.500 gross in this example. Now if this tool calculates correctly……this would leave that family with just over $400 in usable income after complying with this law. I have to conclude that this is not intended to get the uninsured into a medical insurance plan but rather a back door method of lifting another $300 or so in Federal Tax revenue from every household falling anywhere near this situation. We in Texas call that a scam!!! Reply
Hi Robert, there is something wrong with your example. I live in Texas too and my husband and I, with an income of $32,000 qualify for $680 each per month in tax credit, which is over $8000 each per year. The most expensive plan, for smokers is $1900 per month for both of us, which makes it out of pocket $540/month.
Hi 🙂 I worked full time for the first 3 months of this year, and worked part time for the rest of this year. I am 60 years old, a widow, and went on Social Security last February. I don’t have any health insurance and wanted to see if I qualify for Medicaid and need to know if where they ask for income, do I put in both the social security and job earnings, or just job earnings only? My son is 29 and lost his job due to cut backs and hasn’t been able to find another job because the economy is still not fully recovered here, so he is unemployed and lives with me. This year for both social security and my job, I will make approximately 27k total. Last year I made about 20k total. What is my best option for insurance because I barely have enough to pay for rent, groceries, car insurance, phone, gas & electric as it is. I worry that if I have to pay too much for health insurance that I won’t have enough money to pay rent every month. 🙁 What do you think is my best option for health insurance? Thank you very much 🙂 Reply
Hi Deborah, First,they will include your social security income and your job earnings. The best option would be to check with the Marketplace and figure out what fits into your budget. You may also be eligible for a subsidy to help you pay for health insurance. For more answers to your specific health insurance questions, visit http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
useless dribble that you can get anywhere. The real questions are who exactly would have an impact, how much is the federal tax penalty if you dont want to turn your life over to thier system. Reply
I live in MA so we have already had this healthcare requirement and tax penalties in effect for awhile now. A lot of people can’t afford healthcare and have made the choice to just pay the penalty which in the end is a lot cheaper. Employers only have to pay a minimum of 33% in order to be compliant with the laws so a penalty of between $300-600 is nothing in comparison to the between $3000-$6000 you pay out in health ins each year Reply
My daughter will turn 26 on 12/30/13 and as I understand will no longer be covered by our health insurance. She is a registered nurse and had 1/2 yr income in 2013 until she enrolled full time in college for post graduate work. For 2014 she will ot have income. what is her best option for healthcare? Thank you Reply
I am 69 and retired. We are a family of 3. We live in the Philippines. My wife is 51 and my son is 16. They are both U S citizens. Do they have to get ObamaCare? Reply
Obamacare is nothing but another ‘Tax farm’ – that is an important historical term, please look it up: TAX FARM. Go to the Walgreens clinics, or buy into a Doctor co-op, and kick the commie insurance companies back to Eastern Poland. Reply
Most people have this entire arguement upsidedown, and let me tell you why: Medicine (at least in this country) is nothing but a religion where doctors are the priests. This is a subsidy to the doctor’s, not the patients. This is no marketplace, just a huge profit to the insurance companies. Smart doctors are figuring this out….look at QLIANCE in Seattle. They don’t accept insurance, you just pay the doctor $70/month and you see them as often as you want, without copays and deductables! With ‘Insurance’, if you have ‘prescription coverage’, you are paying more for your drugs than just getting generic! People, there is no such thing as a free lunch, please wisen up for all of our sake. Insurance only ‘insures’ the provider gets paid, it does not insure your health. This is nothing but an Orwellian move to control our lives more and more. I would appreciate it if Turbotax stood up to this fascism, and not be a trumpeter for this fiasco. Reply
Turbo Tax has their act together! Wouldn’t it be nice if the Obama administration did? Thank you Turbo Tax for your clearly informative presentation. I know I will feel much better using Turbo Tax AGAIN this coming tax season Reply
Our household income technically qualifies for some subsides for health insurance, but my employer offers qualified ‘affordable’ single coverage. My husband is stay at home and works very part time in a paid coaching position at a public school. He is not offered insurance. Would he (and our children) be able to get coverage seperately from me via the exchange with a subsidy since he isn’t offered coverage from his employer or, since he could be covered through my employer’s very expensive family coverage does he not have that option? (family of 3 soon to be 4 making around $60,000). Reply
Hi Lacey, Your husband and your children can get their coverage from the exchange. As long as the coverage offered by your employer for you qualifies as affordable, you will not be eligible for a subsidy to purchase your own policy. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
Unfortunately, if you qualify for your employer’s single plan, your husband and children will not qualify for any govt subsidies. Your options are: to purchase family coverage under your employer’s plan (hopefully with the employer paying a percentage – and the premiums paid reduce your taxable income); or purchasing the single coverage under your employer’s plan (since you are not eligible for Obamacare), and your family goes to the exchange and pays full fare – with no tax benefit. You will need to go to the public exchange to compare the two options (if and when the exchange website is working). Sorry – you are one of the many middle to lower income Americans who is being screwed by Obamacare. Reply
If my husband and I file “married filing separately” can we consider ourselves two households, if we live in the same house? Can we consider ourselves two households if we are married but live in two different homes? There’s a HUGE difference, $ wise. If we are one household (he’s a Vet, covered by the VA, so he’s fine) I will have to pay $500/m wf huge deductible. If we are two households, I get subsidy & would only pay $300/YEAR for the best coverage.. that’s enuf to have to consider.. !! Reply
Hi Dee, If you’re married, you must file a joint tax return for 2014 in order to get lower costs on Marketplace coverage based on your income in 2014. You can check out the marketplace for your state to confirm that this applies if you do not live together. 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 is your adjusted gross income (the bottom line on page 1 of your long form tax return) plus non-taxable social security, non-taxable interest and foreign income. Taxable IRA, 401K and retirement distributions are part of your adjusted gross income, non-taxable distributions are not. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
Mary Ellen: agi,ln1 plus non-taxable ss? Do you add back the difference from ln 20a? Will turbo tax fix this as well?
Hi Ernie, For 2012 tax returns, you would use the amount on Form 1040, Line 37, plus the difference between lines 20a and 20b, plus line 8b, plus any excluded foreign income. TurboTax will make the proper calculations when you file your 2014 tax return in 2015. Thank you, Mary Ellen
If my employer offers insurance but it cost too much can I still go the Health Insurance Marketplace and get insurance. If not will I still b e able to get help paying for my insurance since I make under the amount that is required per single person? Reply
Hi Sarah, You can shop in the marketplace if you have employer provided insurance. Whether you receive assistance will depend on if your employer-provided insurance is “affordable” and “meets minimum value”. If your employer-provided insurance meets both qualifications, you won’t be able to get lower premiums in the Marketplace. Please see this link for more https://www.healthcare.gov/what-if-i-have-job-based-health-insurance/ For more answers to your specific questions, please visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
What about those of us covered under the Veterans Health Insurance? How are we going to prove our health insurance through TurboTax? They dont hand out insurance cards or policy numbers. Reply
Hi Robert, According to the IRS Question and Answers on the Individual Shared Responsibility page – Insurers will be required to provide everyone that they cover each year with information that will help them demonstrate they had coverage beginning with the 2015 tax year. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
My husband has VA health coverage and is able to get an ID card now for the asking. Also, his healthcare acceptance paperwork has identifying info that can be used for tax purposes to demonstrate his coverage.
Hi Robert, If you are covered under the Veterans Health Insurance, they would report your insurance coverage information to the IRS. You would not have to prove you have insurance to TurboTax, but the software will be up to date with the tax law and will ask the necessary questions related to the tax law when you file you your 2014 taxes in 2015. For more answers to your specific health insurance questions please visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
Thanks Lorie, the VA actually sent me a letter stating that I was enrolled and there was nothing else that I needed to do. Also I did find out that the VA does give me out cards with limited information that them. Thanks! Robert
How is Obamcare, or the Affordable Act going to help you? If you live off the government your all set, and the working people of this country will continue to support your lazy a–. My health insurance premiums are going is going up by 28%, and the deductible is now $6,000 a year. Obamacare is designed for one thing, and that is to destroy the United States. You low information voters have only yourselves to thank. When there are no more jobs, and the government no longer has money coming in from the working class, health care will the least of your concerns. Who cares if you have health care when you can’t afford to buy groceries(sorry you all have EBT cards), or pay the rent(again I am sorry you have government housing assistance). Reply
What about us working people who work 40 or more hours a week and have Medicaid because we are considered low income, because we are single parents who work hard struggling every day to support the child(ren) that we have due to another parents inability or unwillingness to pay the required child support to help support that child? Does that mean that we fall into your biased, close-minded frame of thinking and that we are all “lazy a-“? I’m sorry but not everyone is as arrogant, ignorant, chauvinistic, and pigheaded as you obviously are on your high and mighty throne that makes you think you are god. Reply
Where will you go, Somalia? Almost every country in the world has had socialized health care for many years. A friend of mine runs a one-man construction company. He says his health care premiums are going to be cut in half. He was paying for good coverage so that is an apple-to-apple comparison.
Hi, Just wondering how the household income in my case would be calculated. We’re a family of 3 (me, my husband and my 10 year old son) usually, but last year my mother in law moved in with us for the short term. Is her income included with our household, even though she shouldn’t be? She is moving out soon but i’m not sure that she will be gone before we have to apply for the new healthcare. Thanks! Reply
Hi Jessica, That is a great question. Your household income is made up of the income of the people who are claimed on your tax return. As long as your Mother in Law is required to file her own tax return, and she is not a dependent on your tax return, she is not counted as a member of your household and her income is not included in your household income. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
I have several questions no-one has been able to answer for me: 1) household income – for the exchange is this adjusted gross income or taxable income? 2) I buy my own insurance but my husband has none. He is self-employed & cannot afford it. Can we get insurance separately (him thru exchange & I keep mine)? 3) By using the exchange, does this give the government access to our personal health info? Reply
Hi Nadine, 1. Household income is a Modified adjusted gross income. Your adjusted gross income is modified by adding in non-taxable social security income, non-taxable interest, and foreign income. 2. You and your husband can have separate policies. He can get his through the exchange, using your household income. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
My 25-year-old daughter is on my employer-based health insurance. Will she be able to remain on my insurance until age 26 which is the current law? What will happen in May of 2014 when she turns 26? Will she need to get Marketplace insurance that’s effective on her 26th birthday? If so, when should she apply for that coverage? Thanks for your help. Reply
Hi Sharon, Your daughter has a little time to get insurance when she turns 26. She should be eligible for COBRA, and she can get insurance in the Marketplace. I think if she starts looking in April, she should have coverage by June. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
I am on Medicare and plan to also purchase an Advantage Plan. Would it be more beneficial to purchase something through the ACA website? Reply
Hi Kris, The best way to decide what is more beneficial is to to go your marketplace. Only plans purchased on the exchange are eligible for the payment assistance credit. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
I thought if you were going to be on medicare you couldn’t get insurance in the marketplace. Can you get a supplement then
I keep hearing people talk about the “employer mandate”, and how it is the provision of Obamacare that requires the employer to pay (not just offer) for medical insurance for employees at companies larger than 50 FT employees; effective 2015. One of the stipulations is that the mandate only pertains if the employer pays for other employees, so it’s a “what you do for one you do for all” concept. Is this true? Reply
Hi Marcus, There is no requirement that large employers pay 100% of the cost of medical coverage for their employees. There are provisions that require large employers to pay a penalty if even one of their full-time (30 or more hours per week) employees qualify for lower costs on their medical insurance on the Marketplace than what the employer offers. If the employee’s share of premium is 9.5% of household income or less, and the policy deductilbles and copays cover at least 60% of the total allowed costs of benefits provided under the plan, it is considered to be an affordable plan. Any plan offered on the Marketplace will meet these standards. There is no requirement that all benefits be equal, as long as the groups receiving a certain package of benefits is not selected to discriminate against legally protected classes, like age or race. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Mary Ellen Reply
Hi Lisa, My question for Oct 9 seems to have disappeared from this thread so I’ll try again: My wife is a Cherokee Nation Citizen and receives all of her healthcare through the Cherokee Nation’s Healthcare System. Is she required to purchase additional coverage? (I am covered by the VA, Medicare and a private Supplemental Policy already). Reply
Hi Ken, Under the Affordable Care Act, she is 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, Lisa Greene-Lewis Reply
Everyone should have insurance, by doing this perhaps the insurance co. wont be able to charge so much problem, and at least you can find insurance. Reply
The clock-stoppers, the regressives, would have you believe 54 percent of Americans are against the ACA. Well, 18 percent (one-third of the antis) are progressives who desire a single-payer system. They’re against Obamacare because it doesn’t go far enough. That leaves 36 percent, and of those, clearly, half couldn’t tell you why they’re against it. So, that leaves 18 percent (i.e., the tea party) who don’t like our president, who was re-elected as a referendum for the ACA. Why the tea party doesn’t like BHO, I don’t know. I can’t quite put my finger on it. Don’t forget, comprehensive health care is an idea first put forth by the clockstoppers as a way to get the “bums” (you know, the 47 percent) to pay their fair share. Reply
get your head out of the sand, ostrich, the muslim obama will destroy this country thru socialism welfare, disability creating a nanny state and this health care will finalize it. Reply
John the bums will get it free now so what the heck are you talking about? I don’t belong to the tea party, and I know a lot of other people that don’t agree with this new so called Affordable Health care plan. Who is it affordable for the bums??? Give me a break. I’m middle class. I paid for my childrens insurance when they turned 26. I got a better plan with BCBS for them than this affordable health care plan. Do you really know what you are talking about?? I don’t think so. Reply
I’ve been informed by BlueCross BlueShield that my monthly premium will increase by 50%, my annual deductible will triple and my co-payment increases 50%. Can someone explain how I benefit from higher premiums and less coverage? Reply
THANK YOU! THAT’S WHAT I’M SAYING! And on less than 25k a year….? AND after I got laid off, and lost my benefits (health premiums that had gone up 60 percent) and lost my only income, COBRA was quoted as another 56 percent higher, in addition to… Who can handle that? Reply
yes Stan, but remember now everyone will have insurance (hahahaha) even if you can’t afford to pay for it. Reply
We can not afford insurance. My husband has it thru work but we can not affairs to add meat any price much less what they charge. No one should have ever been forced in to this. We would starve if we added me to a policy. Reply
I have been unemployed since May 2012 and have only a very small Social Security I took early at age 63. Will I have help if I can’t afford insurance? Reply
HI, Yes, you should qualify for Medicaid, or for assistance in paying for your medical insurance. Check out the Marketplace for your state. Applying there will let you know exactly what assistance you will receive. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
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 – https://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
How can u find out about if u can get help with paying insurance Low rates. I am single mom with 2 kids not making 15,000 a year. ? Reply
The best place to get that information is your state’s Marketplace. With your low income and your family size, you should qualify for fully subsidized insurance. Reply
Your marketplace is http://www.healthcare.gov. You can apply for assistance there. They have free insurance as well as low cost insurance, and certain government benefits for paying for insurance and medical bills are only available if you get your insurance from the Marketplace. Reply
I have health insurance through my employer. The question is on my daughter. Her father is required to carry her health insurance however he has been known to let it drop with out letting me know. I claim her on my taxes. Do I get fined if he lets her insurance drop. I have tried to get it to where I carry her insurance but the court would not let me because he said he would. Reply
Yes, you will be fined if your daughter does not have insurance, because you claim her as a dependent on your tax return. Reply
What about students who are living and studying in a foreign country and who have insurance in the country they are residing? Reply
Do I have to pay a fine if I just get catastrophic insurance from an independent carrier and don’t buy from an exchange. Reply
I’m retired and the company I worked for pays 25% of my monthly premium and I pay 75% of the monthly premium. That 75% I pay totals around $10,000.00. a year. This is the only plan offered by my company and we plan on continuing on this plan till age 65. I was wondering if my wife and I may receive any tax credits on our 2013 or 2014 tax filing based on the percentage of our income paid for health coverage. Reply
If your company does it’s homework, it can offer you a cafeteria plan where health insurance is offered at a certain percentage. Yours is at 25% now. The amount you pay that is deducted from your paycheck can be deducted before taxes. So you don’t pay taxes on that amount. That is how my company does it. Reply
my understanding from our Health Ins broker, the law states you do not pay more than 9.5% of your earned income for coverage.(assets not part of the equation) If the employer ‘charges’ more out of your pay than 9.5% you can shop on the Marketplace/exchanges. Reply
If I purchase insurance thru the marketplace and receive a subsidy of a portion of the premium, will that subsidy amount be taxable when I file taxes in 2015 for tax year 2014? Reply
The subsidy is not taxable, but if you understate your income for the year, and your subsidy was too great, you could have to repay some of it. Likewise, if you overstate your income, and didn’t receive all of your subsidy, it will be refunded on your tax return. Reply
This is a huge compilation of angles on what is happening with the ACA. And when it comes to taxes, I understand everyone is really only interested in their own money, their own pocket, their own lives. But we are part of a whole, as a society, and have to consider ourselves as such, and being that as it is, we are responsible for taking care of our own health; because it DIRECTLY affects others. In theory, if we all take care of our own health, the health of society in general, improves. Currently, the health of our country is not very good. That’s an undeniable fact. I have yet to see that point enter the conversation here or anywhere else, when discussing healthcare, health insurance, and taxes for such. If we as a nation want better roads, we can’t (or won’t) fix them with our own hands, so we pay, with taxes, to have them improved. You want to be in better health, right? And so, as a nation we want better health… Reply
Keep your opinion as your own. (We is a huge assumption) and I don’t believe your single opinion speaks for the majority of America. What good of a nation are we, if we are financially in the dump? I am not of the ethical or moral position, that I believe, I have to sacrifice my wealth so that another can benefit. You can only redistribute so much…until it’s all gone! Reply
It’s not a declared opinion, it’s a practice in logic. I haven’t imposed or assumed anything. It’s a simple matter of taking care of our own health, not paying (either out of pocket or via taxes) for the health of others. Take care of your own health, then you eventually don’t have to pay for others. Do with your wealth as you will, that’s a right for us all. My only point is, I think the majority of America wants to be healthy. I could be wrong, but I think they do.
I do not have heath care and need it badly a low cost heath Care Americn great ideal. Is it a bad thing for company to compent for our dollars. Also with some company that make is sick why not have heath care. Reply
Hello, I was wondering. Through my 1199 union, I only get hospitalization insurance because I am only part-time. Does that meet the requirements ? Reply
Live in the State of Oregon…Son (29 ) as been unemployed since 2009. I claim him as a dependent as he lives in my house and provide 100% of his needs (food, clothing, etc.). He is not eligible for OHP as he is neither pregnant or a minor. Per the state he still will not qualify for OHP. Are there options for this type of situation or does he continous to fall into what apparently is a black hole in the system? Reply
Hi, You son should be able to purchase a policy on Cover Oregon at http://coveroregon.com/ For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
Hi Lisa. What will be the tax consequences and the changes to turbo tax for tax year 2014 that we will be filing in early 2015? Details please. thanks. jh Reply
Thanks Lisa for the information. First of all, you will NOT be penalized until you are actually in the situation that you would need H.I. If this info is correct, Lisa, then you are saying that for NOT spending the tax money that we the people are paying, we will be penalized on it. This seems like a skewed plan drawn up to build monetary sustainability….for the government. I hope people understand why the “government shutdown” isn’t so bad 🙂 Reply
I only have child support and no income of my own. I am unemployed and am a part time student. I have no insurance and just pay as I get billed from any doctors when I go , which is rare. Since I have no income of my own will I have to purchase insurance? Reply
Hi Betty, If you don’t have any income you will not be required to purchase health insurance. If you earn under the IRS income requirement for filing a tax return (about $10,000) you are exempt. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
What if you have a 28 year old unemployed family member that you support 100% and claim as a deduction when I file my taxes. Will I have to pay the penalty for him not having any health insurance?
you will most likely qualify for Medicaid/ state health insurance since you have no income. and now you are required to obtain that. The whole idea of this is to cover those who have NO or limited income so you get the care needed and hospitals don’t have to write off your visit to the hospital. Reply
What the hell does me getting sick or my son splitting his head open have to do with taxes? And why are we forced to pay for something we may not use? This is one MAJOR SCAM! Reply
I would think if you became ill or your kid splits his head and you don’t have insurance, you may not be able to pay the bill if it’s thousands of dollars. *You may be able to. but some may not. Then the hospital has to suck up the expense and it seems like hospital/doctors cost would go up to keep compensating for those that cannot pay the bill. Not really fair for those who do have insurance. Just my thought. Reply
Oh and deductibles for the grandiose healthcare that the potus exempted himself, family, congress, unions, Muslims from are out of this world. $762 a month with a $12,316 predictable. Yeah that’s real affordable…Not! Reply
Hi Lynn, If you already have health insurance through the VA, you are not required to purchase health insurance. For more answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
My son (31) and granddaughter (4) are currently insured by NH Medicaid. Do they need to purchase additional insurance? Reply
Hi Debbie G, If they already have Medicaid, they don’t need to purchase additional insurance. For more answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
I thought the AFA was to help those needy Americans that can’t get insurance, or afford insurance, but according to the information I am reading, if you make less than $10k per year, you aren’t even required to purchase health insurance? Now who is this supposed to help? Aside from one comment on this entire thread, the only information that I am gleaning is that this act is going to hurt a whole lot of people and make health insurance MORE expensive!!!! Oh, not to mention that congress is eligible for a 72% subsidy to purchase through the marketplace. Gotta love this administration. Such a caring, freedom loving, group of people. Not! Reply
My son is in almost in the same boat – lost his group insurance in 2009 and hasn’t worked since and has a pre-existing condition. He cannot get medicaid and has zero income. He will not qualify for any help from the ACA. So how will he be insured????? Reply
if you make below a certain amount you don’t qualify on the exchange because technically you qualify for medicaid BUT you don’t actually qualify for Medicaid if you own more than $2000 in assets? i guess this is their way of forcing you sell off all your assets to pay for insurance and then once you are flat out broke they’ll give you medicaid.
http://www.consumerreports.org/cro/2013/03/download-our-free-guides-to-health-care-reform-and-medicare/index.htm
Thanks for the information David Wooster. It is very hard to hear this kind of law passing specially in a situation that my family is going through at the moment. I have 3 small boys to support that are 2, 3 and the older one is 5 so just imagine! It is hard times for me as the dad that hasn’t found a job due to lack of education. Well I know God will help,supply and provide the means for our crisis at the moment…
If you make less than $10k, you can enroll in medicaid, so you don’t need to “purchase” anything. I’m 26 and will be saving 33-45% on my health insurance per month next year. Depending on the plan I choose. Reply
I am permanently disable and do not qualify for medicare for 24 months. You can apply for medicaid but you are limited on what you own such as a house or vehicle. Also, you are limited as to how much you have in savings. I own two vehicles: a 1991 toyota with 300,000 miles and a 2001 PT cruiser with 100,000 miles. This disaqualified me from medicaid.
Since you are available for Medicaid you have to get your health insurance from Department of Human services. Reply
” not required to purchase insurance”, not quite accurate. You must HAVE it/obtain it. If cant afford it, the State will pay for it for you.( under the 10k income level) Thus you aren’t writing a check to purchase, but the State will cover it for you instead. Reply
The marketplace will determine if you are eligible for Medicare or Medicaid and sign you up. Remember politics, if you are worried you will spend less money and the economy slumps making the other party look bad. This will add up to a savings for American taxpayers within about 10 years. Our right to affordable healthcare and not to be treated like cheap disposable labor is involved with our rights to life and liberty. My mother died because she was self-employed and made too much and too little for preventative care and cancer treatments. This insurance would have saved her life but like many people she felt invincible to illness and gambled with her life and lost. This is a historic moment for equality of the working class vs. management. Congress gets a subsidy as part of there service to the government. Reply
Hi Lisa, I’m a dual citizen, have a home in the US and in a different country. I work for a company in the US but live most of my life (thanks to telecommuting) in the other country. A healthcare plan in the US would not benefit me since I basically don’t reside there. Is there an exception for me out there that would allow me to not have to get the insurance plan? Thanks, Daniel Reply
Hi Daniel, Yes, if you live overseas, you do not have to purchase health insurance. For more answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
Wake up ! with the AFCA if your mother was over 75 she would not have gotten treatment anyway .Artilcles 55 -58 . Reply
I have a question it seems I can’t get a definitive answer to, I am a single father who is supposed to get child support/partial insurance from my ex, unfortunately I don’t receive either and I’m stuck with insurance through my company which totals about $5300.00/yr, plus whatever copays and prescriptions, I have two teenage daughters, so it totals well over $6k/yr, can I write any of this or all off on my taxes? Reply
Hi Tony, Yes, if you itemize your tax deductions (file schedule A), you can write off medical expenses as long as they’re more than 10% (7.5% for 65 or older) of your adjusted gross income. So for example, if your income is $50,000, you can deduct medical expenses more than $5,000 ($50,000 x 10%). Thank you, Lisa Greene-Lewis Reply
Lisa – It looks like Tony is paying his premiums through his job (it doesn’t sound like he’s self-employed) so his premiums are deducted from his paycheck. If that is the case, his premiums would not be able to write off the premiums on his tax return.
My 28 year old daughter was insured until this week through her employer. She is now working part time and therefore is no longer insured. She’s attending the university full time and had to cut back on work in order to go to school and have enough time to study. She checked on the insurance through the university but she can’t afford 2400 Dollars a year. What is her best option? Reply
I appreciate the information, doesn’t make me feel any better about it. Instead of saying the government will help subsidize these premiums, why not say who really covers this funding…….The Tax Payer! I honestly think there are those out there who think the government is giving them something…..it’s not…..it’s hard working people having more of their hard earned money being taken out of their pockets. Reply
AMEN Tracy!! That is the misconception most people have! They think that “Our Government” has some kind of magical bank account that all this “FREE MONEY” is kept in. Wake up people!! This is Obama and the Democrats “spreading the wealth” theory!! I go to work everyday, have to submit to random drug testing, pay outrageous taxes and healthcare premiums, contribute to Social Security (which I’ll never see a penny of!!) Medicare etc…. Just to pay for those of you wanting everything for free!!! Reply
um, the ‘tax payer’ pays for everything in this country. That is how it’s ran. If someone goes to the ER and doesn’t pay the bill, tax payer$ are used and costs go up . Now, those paying premiums( either employers or the employee), that money helps pay premiums for those who cant pay premiums. Same concept, different method. Reply
I have had my own individual health insurance plan for many years and according to this article I’m all set and don’t need to do anything, however, I just got a notice from my health insurance company saying that my current plan WILL END on the last day of the year and I will need to go to the marketplace and select a new plan. I don’t understand the apparent contradiction. Reply
Hi John, If you already have health insurance you don’t need to do anything, but if your plan ends and they are not offering an opportunity to enroll again then you would need to purchase insurance in the Marketplace. For more answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
My daughter does not have a job and cannot afford healthcare, she lives in MA how does she go about getting help with this? Reply
Hi Erika, Your daughter should check out the Marketplace for your state. She will find all the options she qualifies for there. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
She should start by going to healthcare.gov and enter her state. It will direct you from there. Reply
My 27 year old son is unemployed and has no income. He is no longer covered by my insurance and has none of his own. He has no income and no assets and is living in my basement, I currently claim him as a dependent since I fully support him. Will he be required to purchase insurance, and if he doesn’t what are the ramifications? Reply
What if you moved out of the country in August of 2013 and plan on returning August 14th? How will these dates affect the law? Surely I don’t have to have health insurance if I am living outside of the United States in order to not get he tax penalty do I? Reply
Hi Sean, Did you mean returning August 2014? You are not required to have health insurance until 2014. If you live outside the US you are not required to have health insurance. Once you return, you would need to have health insurance. If you have a gap in coverage of less than 3 months you will not receive a penalty. For more answers to your specific health care questions, visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
Do we get charged more if we decline getting insurance for a dependent even though I get insurance through my employer Reply
Hi Cindy, Yes, you will receive a penalty for not insuring your dependents in your household even if you have employer provided health insurance. In 2014 the penalty for children is $47.50 per child. Children under the age of 19 may qualify for Children’s Health Insurance Program (CHIP) or be covered under a family plan through your employer up to age 26, if your employer plan offers dependent coverage. They may also be eligible for coverage through the state exchange marketplace. https://www.healthcare.gov/are-my-children-eligible-for-chip/ For more answers to your specific health care questions go to TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
But part A only covers inpatient hospital stays. Nothing outpatient. Therefore she would be classified as not insured to a dr office because that is outpatient. Reply
I have a friend that’s let’s me stay at his house for free as I’m not working and have no income. Do I have to put his income in my application? He’s totally separate from me except I stay rent free in his spare room. Thanks Reply
Hi AJ, No, you would only include his income if you claimed him as a dependent. If you do not have any income you are not required to purchase health insurance under the Affordable Care Act. Please visit TurboTaxAnswerXchange.com to see more answers to your specific health care questions. Thank you, Lisa Greene-Lewis Reply
I am covered by my gay spouse but can not afford to pay the premiums. I am not working and can not. Can I qualify for cheaper coverage. He pays almost 700 per month for me now. I’m 62 Reply
Hi Larry, If you are a legally married same-sex couple, you will now be required to file your taxes as married. If that is the case, you can try to find cheaper health insurance in the marketplace, you just have to remember you will have to include your spouses income when you apply for health insurance. For more answers to your specific health care questions, visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
What they forgot is what if your employer offers insurance but you can not afford to pay for it. That’s where I am at. I can pay for mine but it will cost me an extra $400 a month to insure my son. I am low income and can not afford this. Reply
You do qualify for a subsidy if your out of pocket premiums are too high. I would talk to a local representative who signs people up if you can qualify. It depend on your total income and how much out of pocket your premiums are.
Two of my adult daughters are divorced with very low incomes. I am paying for their individual medical insurance at this time which is very expensive to me. Are they eligible to sign up for insurance with one of the exchanges even though they have insurance.. Reply
Please do your research and look for facts. It not as simple as “yes” or “no”, as there is many variables. If you live in CA 1-800-300-1506 or http://www.coveredca.com. They will answer all questions an answer quickly. If you do not live in CA you can us the website for general information. Reply
Talk to your local nonprofit representatives who sign people up. If you can’t afford insurance and you live in a state that is expanding medicaid coverage, you may now be leigible for this. Reply
Hi there, My family of 5 receives health insurance through my husband’s work, however his employer sent us something that says we may qualify for health care insurance through the Exchange. Is this true? We currently have a $2 K deductible and pay about $300 in monthly premiums. Because our combined income is about $40K is it likely that we would qualify for a subsidy and it would be cheaper than what his employer offers? Reply
I was under the impression that if you have employer coverage , u can not get insurance from the exchange, unless his company doesn’t offer anyone in te company insurance anymore. Reply
Hi Rebecca, If you have employer provided insurance you can shop in the Marketplace, however you may not get assistance. The only way you can get assistance is if your employer does not provide “affordable coverage” (employee’s share is greater than 9.5% of annual household income) and the insurance does not meet “minimum value”(employer provided coverage does not pay at least 60% of the total cost of medical services). For more answers to you specific health care questions, visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis
You are in the same situation I am in. If your company offers insurance you do not qualify for a subsidy. I make 27 thousand with insurance and it will cost me $400 extra to insure my son. I can not afford this. Not Affordable!!! Reply
If you have employee coverage you may be eligible if your premiums are over 9.5% of your income with certain tax deductions included. Check with a local rep on health exchange to find out. Many states have nonprofit health groups helping people figure things out. Reply
I have heard that if my employer pays for my health insurance (or pays for a portion of it), the amount they pay is now considered to be compensation I am receiving, and is tax deductible? Is this correct? Reply
Are premiums for long term care insurance deductible along with regular health care premiums? Also, can you deduct Part B premiums for medicare? Reply
I have insurance through my employer, but can’t afford what they charge for the kids, will the $95 penalty apply towards them. I’m trying to get them back on the low cost insurance through the state (Nevada), but had problems since my daughter is only 5. I have to go back & re-apply for all the kids again. Reply
I am shopping for health insurance on my state’s (WA) insurance exchange, and when the premium amount is listed, it is giving me the full price for the premium. I am currently making less than 200% of the federal poverty level, and as far as I can tell, have no other reasons that disqualify me from receiving the subsidy. So I’m wondering, how does the subsidy work? Is it automatically calculated into the cost of my premium, causing me to pay the lower amount, or is it returned with the tax return? Reply
Speak to a local health exchange rep. My sister’s family qualify for a family of 4 and they make about 55,000. Reply
Already have ins thru my employer so I heard if I would happen to use my medical insurance for a major claim say $12000.00 that would be paid to the hospital/ doctors etc that I may be taxed thru 1099 form . with obama health care act Reply
I am owner and only employee of an S-Corp. I have been uninsured for years because of pre-existing conditions. I would like to get an individual policy for myself. What are my options?. My employer is me. Can my business get some kind of expense deduction or credit for providing me insurance? I already get a complete deduction of all my health care expenses through a health reimbursement arrangement with my company. I would rather have real insurance. What are my options in the brave new world? My income is too high for individual premium subsidies. Reply
So, if we already have insurance coverage and not using the marketplace since we will not get a credit on our taxes does this me that we will also not get a credit for our medical expenses we have occurded during the year? Reply
Hi Bob, If your wife already has Medicare, she will not receive a penalty. If you are required to have health insurance and don’t purchase by March 31, 2014, you will face a penalty of $95 for the year or 1% of your income if your household income is over $55,000. For additional answers to your specific health care questions visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
The 1% is if you do not have insurence by , March 2014. However the amount your penalty will be will increase every year due to this “ObamaCare”. After March 2014. The penalty for not have medical insurence increases to $695 per person in your family or 2.5% of house hold total income. For single people it’s only you that play the $695 or 2.5% of yearly income…
Penalty: 2014: $95.00 per individual/family member or 1% of household income, whatever is larger. 2015: $325.00 per individual/family member or 2% of houshold income, whaterver is larger. 2016: $695.00 per individual/family member or 3% of household income, whatever is larger. Reply
Hi Leokham, Thank you. Here is additional information on the penalty: 2014: $95 per adult, 47.50 per uninsured child with a family maximum of $285 for the year or about 1% of your household income depending on household income. If you are single and make more than $20,000, your penalty will be 1% of your income less the tax filing threshold, if you are married and make more than $55,000 your penalty will be 1% of your income less the tax filing threshold. So if income is $21,000, it will be $21,000- 10,000= 11,000 x .01 = $110. 2015: $325 per adult, $162.50 per child, with a maximum penalty of $975 per family (or roughly two percent of total income depending on family income). 2016: $695 per adult, $347.50 per child, with a max of $2,085 per family, or about two and a half percent of total income depending on family income. For more answers to specific health care questions, visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis
I’m retired and have lived abroad for the past 8 yrs. I rejected medicare at 65 because it can’t be used in a foreign country. How will ACA affect me? Thank you. Reply
Hi Roger, If you live abroad, you are not required to purchase health insurance under the Affordable Care Act. For additional questions, please go to the TurboTaxAnswerXchange.com. Thank you, Lisa Greene-Lewis Reply
My friend and his wife are US citizen. They have been living oversee (Vietnam) since 2008. They are 60 years old. Are they required to purchase Obama health insurance? Reply
Hi John, Under the Affordable Care Act, you are not required to purchase health insurance if you live abroad. For additional questions, please go to the TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
I own a company and have private health insurance coverage for myself and my husband. Do I have to offer this to my employee’s as well? Or can we have private insurance and have them purchase it through the marketplace? Reply
Hi Gayle, If you have over 50 full-time employees you will be required to offer your employees insurance, but the employer mandate has been extended to 2015. The individual mandate, however has not been extended so your uninsured employees should go through the Health Insurance Marketplace. For additional questions specific to your health care needs please visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
I just purchased new insurance at about 150.00 cheaper than I had been paying for my private insurance. The coverage is so much better and it even has co-pay, prescription, etc.! The agent told said the new (more affordable) insurance was offered because of the Obama Health Care Act. I am thrilled! Will I also qualify for the tax credit? My employer has never offered insurance- so I have to buy it for myself and my children. I think Obama Care is the most wonderful thing any President has ever implemented. People may or may not like having to purchase health insurance, but I cannot imagine not having any- especially in today’s world. It is just being responsible- like having car insurance. We have needed it for a long time! Hats off to Obama and everyone who helped make it possible! Reply
I’m happy you are able to have insurance and save $150. Just remember it’s because people like me had their insurance increase. Mine went from 2800 to 7100. The government doesn’t get the money out of thin air, it comes from working people like me (a single mom with 2 kids) Reply
Ummm, she may be working and unable to afford insurance, but now she can. Just because you make enough money and your company offers a reasonable plan doesn’t mean that is true for everyone. My school didn’t offer teachers a plan that met the “under 9.5%” of your income clause for unmarried people.
That’s all very well for you, and I agree everyone would benefit from having health insurance. But there’s no justification for the government to MANDATE it. Not only that, but the ACA even decrees what KIND of insurance you have to have. That’s just wrong. Reply
Plus, most people are finding that their health insurance premiums go UP, not down, under ObamaCare; and employers are cutting full-time jobs and replacing them with part-time to avoid the employer cost of ObamaCare. It has a few good provisions, but overall it’s a disastrous law.
Totally agree. Being forced to get something you want it or not is the exact opposite of freedom…and they easily could have made health care more affordable without mandating that everyone has it, but then the government wouldn’t be able to make money from charging us penalties…so yeah, not a good thing, the ACA is one of the biggest train wrecks to ever get passed in America.
I went on the exchange and could choose from 33 options. 10 if I wanted a subsidy. I have never had an employer offer me 10 affordable options.
My husband and I are unemployed and have been paying for a medical risk management insurance program through our state (California). It is very expensive, but that is all we could get because of “pre-existing conditions”. We have no income, but are able to pay because of selling assets and help from family. Can this be considered as income to qualify for assisted healthcare? Reply
Hi Anna, If selling your assets created a taxable event and you have to claim the income on your taxes, then you may be able to include this as income, but not the loans from your family. To qualify the Marketplace will look at wages and salaries, interest and dividends, unemployment benefits, and other sources of income plus the non-taxable portion of any social security, tax exempt interest, or any foreign income. For additional questions to your specific questions, please visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
I hope I understood your comment correctly. But here goes. You are selling your assets so you can get health insurance and they are taxing what you make out of the sale and making it manditory for you to buy insurance. That is sick. You should not have to pay taxes on the sale of your assets if you are using the money to buy insurance. What they are forcing you to do is not right. Reply
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
Alan, You can go to http://www.healthcare.gov and get the links to your state Marketplace. You can also find links and additional answers to your specific health insurance questions on http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
Hi Kathleen, No you do not. If you have Medicare you are covered under the law. Thank you, Lisa Greene-Lewis Reply
Hi Lisa , I have 1099 income only . I will buy insurance from exchange without any financial aid . So question is health insurance premium are tax-deductible ? Reply
Medical expenses are deductible if they exceed 10% of your adjusted gross income (7.5% if you are 65 or older). As a self-employed individual, you may qualify to deduct your medical insurance premiums even if you don’t itemize deductions. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
Hi Karen, When you purchase health insurance through the Health Insurance Marketplace lower premiums are based on your income and family size and not on your health or age unless you smoke. For more answers to your specific health insurance questions, go to TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
Im shocked at how much higher the new plans cost. I just used one of the turbotax links for the healthcare calculator and subsidies calculator – and we will qualify for a $300 tax credit if we buy $600/mo insurance. 2 years ago when I priced insurance it was only $200/mo. I think its safe to say this ACA is not at all affordable. Thank you for providing information and links, but this is certainly looking dismal.
Hi Andrew, Sorry if you already covered by a health insurance plan you would not receive a tax credit. This tax credit is only available to those who purchase health insurance in the Health Insurance Marketplace. For more answers to your specific health insurance questions go to TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
thank you for being so informative and helpful. Very well done video- could you pass it along to our government please? Reply
What if my agi is only 13500 and I qualify for medical can I still choose a plan that costs more Reply
If I live outside of the USA, but I am a USA citizen and don’t receive a W-2 as I am paid in the local countries currency, what do I need to do to avoid a penalty? Reply
Hi Jeff, People who live outside the US are not required to have medical insurance and are exempt from the penalty. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
So now, I have to pay taxes, pay child support, pay for othe rpeople to sit and get free health insurance, and now I have to pay for health insurance, communism. Reply
Hello Lisa, I have a brother that I claim as a dependent. He has no income whatsoever. Does this make me responsible for providing him healthcare? Reply
Hi Jim, If your brother is a dependent on your tax return, he is considered a member of your household. You will be responsible for the penalty if he is not covered. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
For adult children (over 26) living with parents, are the parents’ income included in household income for tax subsidy qualifacation for the adult child? Reply
If the adult children are dependents on your tax return, they are members of your household and your income will be part of their application. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
Family of two; Ages: 70 & 60; Income: 45000, with half from SS. Does the SS degraded the amount of assistance of the 60 yr. Is coverage firgured after deductions? Reply
You can get an estimate of your benefits and answers to your specific health insurance questions at http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
I have a 58 year old sibling who’s been unemployed for years. Doesn’t have any health insurance and doesn’t file taxes. How do I advise him? Reply
Without income, he should qualify for Medicaid. He should go to the Marketplace for his state and apply there. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
If in 2014 my employer lays me off in March and my health insurance is covered up till June, will i have to pay a penalty for the other 6 months without health insurance? Reply
Hi Dan, You will probably have to pay a penalty for not securing insurance after you are laid off. The exchange will be open to those who have changes in their situations such as lay-offs, births and the like. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
I do not have health insurance because I have been denied a few times because of my health now. Im low income and can’t afford anything to high. How will this affect my taxes? Reply
Hi Kyle, I would try again. Part of the expansion under the Affordable Care Act is you cannot be denied coverage for a pre-existing condition. In addition, you may be eligible for Medicaid. You can check insurance eligibility by going to Healthcare.gov. Hopefully you will be able to get insurance and your taxes will not be impacted at all. Those who are required to purchase health insurance and do not by March 31, 2014, will receive a penalty of $95 per adult per year, capping out at $285 per family and about 1% of income if your income is more than $20,000. For more answers to your specific health care questions, visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
Hi Stephen, The Affordable Care Act will not impact you if you already have insurance. It’s only for those who are uninsured. For more answers to your specific health insurance questions, visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
Family of 2; Ages 70 and 60; Family Income: 45000; Since SS is part of the family income, wouldn’t that be penalizing the under 60’s insurance payment? Will the insurance payment be figured before or after deductions? Thanks for any clarification you can give! ! Reply
In 2011, Obamacare eliminated my ability to use my health savings account to purchase over-the-counter medication. In 2012 Obamacare slashed my health savings account limit by 50%. As more Obamacare rules roll out, are further cuts to health savings accounts on the way? Reply
I do not have insurance through my employer but my daughter has been covered in CHIPS for the past few years. Will she continue to recieve CHIPS or do I need to apply for her under the affordable healthcare act? Will I have the option to choose between the two for her? Reply
My wife and I both have insurance offered through our employers. However, my coverage is far superior to what her employer offers, so we don’t utilize hers and I cover her on mine. I have heard this could have penalty repercussions because she isn’t utilizing her companies policy and using mine instead. Is this correct? Reply
Hi Nanc, Co-pays and co-insurance that you pay can be deducted on your taxes if you itemize your deductions. For 2013, your medical expenses need to exceed 10% of your adjusted gross income, so if your AGI is for example $50,000 then your medical expenses need to be more than $5,000. Individuals 65 and over can still claim medical expenses over 7.5% of adjusted gross income. If you have more health insurance questions you can go to our social community at TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Thank you, Lisa Greene-Lewis Reply
will i be able to put my disabled girlfriend on my insurance? she is not on SSDI,still fighting thru a lawyer for. i do claim her on my taxes. Reply
Hi George, If you are able to claim her as a dependent on your taxes, you should be able to add her on your insurance. For more answers to your specific health insurance questions, go to TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
My wife is on Medicaid. She is in a nursing Home. She has Medical Insurance from her employment before she retired in 1990 from the Social Security Administration. That coverage is by the Mail Handlers Benefit Plan. The Medical Insurance covered her before she was on Medicaid and I think she still is covered. Medicare automatically put her on United Health Care coverage, as of Nov. 1, 2013. Should she drop the coverage from United Health Care? Reply
Hi Lewis, That would be up to you and dependent on if they provide all of the health services your wife requires. Please visit the TurboTaxAnswerXchange.com to get more answers to your specific health insurance questions. Thank you, Lisa Greene-Lewis CPA Reply
Hi Cindy, If you do not get health insurance by March 31, 2014, in 2014 the penalty is $95 per adult in the household and caps at $285 per family for the year or it may be about 1% of your income if the household income is more than $20,000 if single and more than $55,000 for married couples. If you have more questions, please visit our social community at TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
Why is there a penalty? I thought the Supreme Court deemed it a tax? How do you tax something if you do not buy it?
I will qualify for financial assistance to afford health care as I work full time but don’t make enough money. Seeing as I will get assistance, will that affect my taxes in the future? Should I expect less back because I’m not paying full price for health insurance? Reply
Hi Arin, The amounts applied to your insurance premiums in 2014 will be reconciled on your 2015 taxes. As long as your income that determined your eligibility for the tax credit is not different in 2014, you will not see anything different on your taxes. If your income is less than expected you may receive a bigger credit when you file your 2014 taxes in 2015. If your income is more than expected, you may have to pay some of the credit back when you file in 2015. TurboTax software will be up to date and like with all tax laws will figure out the tax calculations for you so you will not have to worry about figuring this out. If you have more questions, please visit our social community at TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
Hi John, If you are native American and your health care is covered you don’t need to purchase health insurance and you will not receive a penalty. Thank you, Lisa Greene-Lewis Reply
I opened an HSA through my local bank and have a high deductible health policy through my wife’s employer. Are the contributions that I make to the HSA deductible or just the qualifying expenditures that are paid from the account? Reply
How is it that you have to buy insurance when you do not have a job and can’t find one and you do not qualify for Medicaid. Reply
Hi Lisa, There are exceptions. If you make under the IRS filing requirement (about $10,000) or if the lowest priced plan is more than 8% of your household income you will not be required to purchase health insurance. Read more here https://www.healthcare.gov/exemptions/ If you have additional health care questions, please visit TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
I currently have insurance through my employer and they pay a portion of my premium which is a benefit. Under the Affordable Care Act will I be taxed on this amount my employer contributes? I understand the amount the employer contributes will now be on my W-2. Reply
Hi Brian, No you will not pay taxes on the amount your employer contributes. That amount is an employee benefit provided by your employer. The amount your employer contributes is now reported on your W-2, but it is for reporting purposes only. Thank you, Lisa Greene-Lewis Reply
Hi Katherine, If you are already covered, you don’t need to purchase health insurance. Thank you, Lisa Greene-Lewis Reply
This is a joke it only told me about programs that have been around for years, this stuff you could already get Reply
My husband is covered by Medicare; I am not eligible for Medicare coverage until 2015 and will consider using ACA exchange to purchase however, if I opt not to purchase coverage will both my husband and I face a penalty on our IRS return filed jointly? Reply
Hi Christine, Your husband is already considered covered if he continues his Medicare coverage and will not receive a penalty, however you would receive a penalty if you do not purchase health insurance by March 31, 2014. You would pay your penalty when you file your 2014 taxes in 2015. If you have more questions, you can go to our social community at TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
Do we need to save all our receipts if we have an HSA? We also use it for optical and dental, as well as prescriptions. All medical insurance gap items are paid from that account. I fear a lost 11mo. receipt could cause a problem Reply
What about if I haven’t worked in this year and I have been a fulltime student in college? My husband has worked parttime and is a fulltime student at the same college I attend. We have earnings of 2,500 for this year for the YTD and well, we don’t have insurance of any kind for our financial struggle. Our kids are covered by Medicaid for the low income we have and well I have a worry about this since I have always had a YTD of 30,000 or more in my joint tax return. This year I am so sad to say this but it is not something to wish upon anyone. If anyone can let me know what penalty I am going to be facing it would be greatly appreciated. Thanks. Reply
My parents are on Medicare and do not have a supplement insurance. Will they be required to purchase insurance? Reply
Does Turbo Tax know when individuals will begin being taxed on the overall value of their healthcare, employer sponsored or otherwise? Reply
I will pay a penalty because this was a free country and should not have to choose between bills and that. Reply
If you don’t have insurance and don’t check your exchange, you may be sorry to hear about all the insured people who are paying $70 monthly premiums in states like Washington where we worked hard to set up a great exchange with lots of options. Reply
If I already pay for my own health insurance, will I be able to get a tax credit on my 2014 taxes? Thanks, Sharon Reply
As a self-employed individual, will the health insurance still be deductible in the same way as it is now or will that change? Reply
Is it true all real estate sales beginning in 2014 will be subject to a 3.8% tax? Is this based on the profit, like a capital gain or on the gross sales price. Either way, how did this get into health care? The real estate owners are already hammered paying for public education. Thanks, Scott Reply
I want to get coverage, but have not been able to afford it. If I find that I still can’t afford it under the new system, how do I avoid being penalized in my taxes? Reply
Check the exchange before you worry. Also, if your state did not proactively set up a health exchange a while back, call your senators and rep and complain. Prices are very competetive for even very low income, older people who are middle income or below. Reply
I am an expat living full time in Mexico. I have my health insurance through the Mexican government called Seguro Social. Does this type of insurance meet the new requirements or will I be subject to penalties or fines? Reply
Citizens living outside the US are not subject to penalties. The Marketplace only carries insurance for those living in the US and for medical expenses incurred in the US. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply
I am covered under the State retirement plan, but the premiums cost me more than my monthly benefit. Am I eligible for a subsidy? Alternately, am I eligible to shop in the Marketplace for new, less expensive coverage? Reply
Hi TTL I’m thinking about NOT signing up for ACA! what is my penalty for income of $26,750 per year? Gary B. Reply
You should sign up…if you live in a state with a healthy exchange, you may find affordable options. You will likely qualify for a subsidy.
Hi Joy, If you are uninsured and don’t meet exemption requirements, you are required to have health insurance by 3/31/2014. For more answers to your specific health care questions visit http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply
If I already have insurance and will not be purchasing through the exchange, will I be able to get a tax credit based on my income? Family of 3 making 55K. Thanks, Jereom Reply
Hi Jerome, Unfortunatley, the tax credit is only for those who are eligible and purchase insurance through the Health Insurance Marketplace. If your insurance is self provided and not provided by an employer you can check your options and purchase health insurance through the marketplace and you may be eligible for the tax credit. Thank you, Lisa Greene-Lewis Reply