If you require health insurance in order to comply with the Affordable Care Act and you are eligible to shop in the Health Insurance Marketplace, taking the time to closely estimate your 2015 income and family size during the 2015 open enrollment period will make the process of shopping for discounted health insurance easier in the long run.
You’ll need information about your household income and family size to apply for subsidized or discounted coverage in the online Health Insurance Marketplace.
The open enrollment period to buy coverage for 2015 runs from Nov. 15, 2014 to Feb. 15, 2015.
Closely estimating your income matters because your subsidy or premium tax credit is based on your projections.
If your estimate is too high, you may miss out on a bigger subsidy to help you pay for your insurance until you file your taxes.
If you underestimate your income, your 2015 tax refund may be reduced by the additional advance premium tax credit or subsidy (subject to certain caps) you received.
If you purchase Marketplace health insurance, it is best to report any changes in income or family size to the Marketplace as soon as you find out about the changes.
Of course, no one can predict the future. But you can get a clearer picture of what’s in store by considering these factors.
Family size Is your family expanding because you’re expecting a baby or moving elderly parents into your home? Maybe your family is shrinking with older children moving out.
Income changes Do you foresee a drop in household income due to an early retirement or maternity leave? Maybe you’re anticipating an income boost in 2015 because your business is booming or you’re expecting a raise.
Citizenship/Immigration status If you recently became a U.S. citizen or you have an eligible immigration status, you can now shop in the online Marketplace where you may qualify for a subsidy.
You’ll need to verify your citizenship or immigration status when you buy coverage.
More questions? TurboTax has you covered. As with all tax laws, TurboTax will answer your questions to help you understand how the new health care law impacts you and your finances with TurboTax Health.