Health Care Seven Things You Need to Know About Health Care Reform 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 Modified Sep 12, 2013 2 min read Are you starting to hear the buzz about Health Care Reform, also known as “Obamacare”? Are you confused about how it impacts you and your family? You can relax. Whether you’re insured or not, here are seven important things you need to know: Health Care Reform Provides Affordable Insurance to the Uninsured Beginning October 1, 2013, uninsured Americans can start shopping for affordable health insurance in the online health insurance marketplace. Most uninsured U.S. citizens and legal residents will be required to purchase health insurance by March 31, 2014. 2. Health Care Reform Provides Expanded Coverage Ability for young adults to stay on parents’ plan until age 26. Individuals with pre-existing conditions cannot be denied coverage.. Medicaid will now be offered to individuals under age 65 with income less than about $15,302 ($31,155 for a family of four). 3. You May Be Eligible for a Government Subsidy Uninsured individuals who purchase health insurance through an online health insurance marketplace or exchange and have income no greater than about $94,200 * for a family of four, may be eligible for a government subsidy to help pay for health insurance. The subsidy will be in the form of a tax credit. Unlike most tax credits, you will not have to wait to receive the credit or subsidy; it will be applied to your insurance premium when you purchase in 2014. 4. You Can Start Checking Insurance Options Before 2014 Beginning in October 2013, if you’re uninsured or looking for more affordable insurance, you can visit your state’s online health insurance marketplace to see your options. 5. You May Receive a Penalty if Not Insured by March 31, 2014 If you are required to purchase health insurance and have not done so by March 31, 2014, you will receive a penalty. The tax penalty will be on your 2014 tax return filed in 2015. The penalty in 2014 is $95 per adult, $47.50 per child, capped at $285 or 1 percent of household income depending on income. Each year the penalty increases. By 2016, it rises to $695 per adult, $347.50 per child, capped at $2085 or 2.5 percent of household income. There is no penalty for a gap in coverage less than three months. 6. You May Be Exempt from the Health Care Reform Law You may not be required to purchase insurance and will not see any changes in 2015 on your 2014 tax return with regard to the purchase of insurance if: You already have health insurance through your employer, Medicare, Medicaid, or purchased on your own. You have income below the IRS tax filing threshold ($9,750 if you are single). You have financial hardship. The lowest cost plan option exceeds 8% of your income. You are American Indian. 7. TurboTax is Your Reliable Health Care Source As with all tax laws, TurboTax is up to date with the latest health care tax law changes. You can continue to rely on the TurboTax Community for answers to help you find out how health care reform impacts you, your finances and your taxes. *400% of the 2013 Federal Poverty Level Previous Post White House Delays Affordable Care Act Employer Mandate Until 2015 Next Post President Obama Announces Health Care Rebates for 8.5 Million Americans Written by Lisa Greene-Lewis Lisa has over 20 years of experience in tax preparation. Her success is attributed to being able to interpret tax laws and help clients better understand them. She has held positions as a public auditor, controller, and operations manager. Lisa has appeared on the Steve Harvey Show, the Ellen Show, and major news broadcast to break down tax laws and help taxpayers understand what tax laws mean to them. For Lisa, getting timely and accurate information out to taxpayers to help them keep more of their money is paramount. More from Lisa Greene-Lewis Follow Lisa Greene-Lewis on Twitter. 99 responses to “Seven Things You Need to Know About Health Care Reform” « Older Comments What if you are living abroad? Will the 95$ penalty be enforced on me? Reply This article neglected to list other types of peopel who are exempt from having to have medical insurance, under Omaba Care law. Reply First clear and concise answer to the new health care I have read. Reply You are kidding us, right? This whole thing is a disaster and affordable is not something that describes it. Time to take this down and put an “under construction” sign up until this all fleshes out. Reply I”M A SINGLE WOMEN THAT NEED THE OBAMA CARE FOR MYSELF BECAUSE I DONRT HAVE NO INCOME COMING IN NOTHING BUT FOOD STAMP IT SO HARD FOR ME TO GO TO THE DOCTOR ON A REGULAR BASCIS BECAUSE I CANT EFFORD TO PAY $400.00 TO $600.00 DOLLAR EVERY TIME I GO TO THE DOCTOR SO THAT REASON WHY I NEED SOME CARE FROM SOMEONE US BESIDE ME Reply I THINK IN NEED SOME TPY OF MEDICAL SO I CAN BE ABLE TO GO TO THE DOCTOR ASAP LIKE A LOT OF US OUT HERE NEED THE SAME THING SO I NOT JUST TALKING ABOUT MYSELF WHEN I SPEAKER I SPEAK FOR US ALL. I AM A SINGLE WOMEN, DONT HAVE NO INCOME COMING IN, I NEED TO GO TO APPOINTMENT THAT I CANT MAKE BECAUSE THEY ARE ASKING FOR $400.00 TO $600.00 WHEN I WALKING IN THE DOOR, NOT ADD THE PART WHEN U GET IN THE VBACK OFTEN SEND THE DOCTOR. THEY WHY I NEED SOME MAJOR HELP, CAN U PLEASE HELP ME BE ABLE TO GO TO THE DOCTOR TO CHECK ON MY HEALTH, WITH SEVERN PROBLEMS THAT I AM HAVE TO DEAL WITH RIGHT KNOW. THANKS Reply I need to enrool un The programa Obama care I dont hacve insurent and my health condición need atención I have cancer ;Lupus; diabetes; hig blood presión. Please i need tour help .for better c uality of life. Thak y o u.God blees. Reply What is the basis of income under the Affordable Health Care, adjusted gross or net taxable income, line 37 or line 43 on the 1040? Thanks,. Robert Reply Which income tax return will the IRS be looking at in determining the first penalty, the 2012 or 2013 tax return? I would guess the 2013 return if the penalty appears on the 2014 tax return. Reply Hi Steve, They will actually look at your 2012 tax return filed in 2013, because 2013 tax returns will not be filed until 2014. The penalty will appear on your 2014 taxes filed in 2015. For more answers to your specific health care questions, visit http://www.TurboTaxAnswerXchange.com Thank you, Lisa Greene-Lewis Reply Actually I found the answer to my question on the Turbo Tax AnswerXchange. I wanted to know what tax year the IRS would look at in determining the first fine and that would be the 2014 tax year not 2012. For tax year 2014, the tax penalty for not having health insurance is the larger of 1% of your 2014 income or $95 per uninsured adult (plus $47.50 for each uninsured child), with a maximum penalty of $285 per family. For tax year 2014, the tax penalty for not having health insurance is the larger of 1% of your 2014 income or $95 per uninsured adult (plus $47.50 for each uninsured child), with a maximum penalty of $285 per family. All, I lived in France for 13 years. Everyone from America said, “Oh health insurance is free, right?” Well, not right. I had a health card, and no issues with getting health care when I needed it. I made a very small salary $25,000 per year..and $12,000 in taxes. THIS is socialism. The ACA is NOT socialism. What it is…is just like the tax you pay to get MEDICARE, and SOCIAL SECURITY. It is learning to take responsibility for your health and future. Reply mi nombre marlene cera quiero acogerme al Obama care necesito saber si existe una planilla o form para hacer la solicitud y si me la pueden mandar o confeccionarse via internet Reply Dear TurboTax,can you tell us how the ACA subsidy origininates ,and if it is permanently built into the matrix? Reply I have heard that in 2014 there will be taxes on my employee “benefit package.” Mine is worth about $36,000. It counts vacation, sick time and insurance benefits and puts a monetary value on these. Actually my benefit package is almost as much as I make a year. The thought of paying taxes on this is scary and if it is true, I need to start planning and change my withholding. Can you give insight on this? Reply There is no current plan to tax your benefit package. Starting in 2018, employees with premium health care plans may be taxed on a portion of the health insurance premium, but not on dental, vision, life or disability insurance, or on other benefits. For additional answers to your specific health insurance questions, please visit http://www.TurboTaxAnswerXchange.com Thank you, Mary Ellen Reply Will turbo Tax -Deluxe for 2013 tax season be compatible with MAC OS X 8.5. I purchased Turbo Tax last year (thru the Advantage Club and had trouble with the Program. I had to buy a copy of Turbo Tax (Deluxe) at Best Buy. Reply If you all don’t like what is going on in this country then step up to the plate and run for office yourselves. What about those of us who don’t or can’t work, and don’t file because of no income to file for? 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