The Truth About Healthcare Reform

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Starting to hear more about health care reform? You’re not alone. And you may be hearing some conflicting information about what you need to do and when you need to do it.

At TurboTax, we’re here for you every step of the way so we’ve got the basic facts that you need to know.


What is health care reform?

Today, there are an estimated 48 million Americans without health care coverage. The Affordable Care Act, or health care reform, is designed to provide cost-effective health insurance to those who are uninsured.

Health care reform includes a new tax credit for an estimated 20 million low-to-middle income Americans. The tax credit will help people purchase affordable health care who otherwise would be unable to afford it.

Here’s what you need to know right now:

  • The requirement to purchase healthcare does not impact your 2012 tax return. Phew! You don’t need to do anything right now.
  • But you should know that your 2012 tax return will help determine your eligibility for an insurance subsidy from the government, which will help you purchase health insurance under the health care law..
  • When you file your 2013 tax return you still don’t need to do anything.  The requirement to purchase healthcare does not impact your 2013 tax return.
  • Beginning in Oct. 2013, uninsured Americans will be able to enroll in a health plan through state and federal exchanges.
  • In 2014 everyone, except for a few, will be required to purchase health insurance or face a tax penalty.

There are a few groups of people who will not be required to get health care coverage or pay a penalty. This includes those with income below the IRS requirements for filing taxes, those who qualify for religious exemptions, and members of Indian tribes.

You can rest assured that TurboTax is always up-to-date with the latest tax laws. We’ll let you know what you need to do in the future to help you keep more of your hard earned money.

And if you have questions, call us and an experienced TurboTax tax pro will take care of you. Only TurboTax lets you talk to CPAs, enrolled agents and tax attorneys while you prepare your tax return, free.

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

18 responses to “The Truth About Healthcare Reform”

  1. I was wondering, My household income for 2014 is about 30,000 My Dad and I live together and we can hardly make ends meet. What insurance offers are available to us?

  2. ok I looked into this plan to see how much my husband and I were going to have to pay ,He is 64 and i am 63,you said to look on lone 37 to see your AJI and when I did ,it said -$14,479.00 so tell me what or much do I or will I have to pay ??????This is so confusing when there is a minus sign if front of the 14,479.00.So can you tell me ?????

  3. Hi My Husband Recieves Social Security I am inable To work Do To Panic Attack Issues We Have not been required To File Taxes Do To our low Income I finally was Able To get through And sign up For Obama care Insurance but once I sighned Up I found out Im not elgible for help paying for My Insurance because We dont File Taxes Can you give Me Any Solution To This ThankYou

  4. No help? If I need to start putting out cash for this I need to now so I can try to figure out how to pay for it on my taxes.

  5. I do not work – as with many other people out there – I was laid off 3 years ago and have not been able to find work – With prospects looking dim for the future – Am I REQUIRED to purchase healthcare or pay the penalty? I live alone and have zero income and am living off of my savings.

  6. I am thoroughly pissed about this entire thing. I go to the doctor ONCE A YEAR for my annual. I do not want to pay a monthly fee to go to the doctor once a year. I do not need it, not do I want this load the government is shoving down our throats.

      • If you are comparing it to car insurance then structure ACA similiar to car insurance. For instance let me buy medical insurance from any carrier in the country (across state lines). Also everyone should have to participate in ACA the same as car insurance. ACA does not apply to everyone but driver’s licenses and car insurance do (if you own and operate a vehicle). Not aware of car insurance programs being sold by the federal government or being federally penalized for not having car insurance – correct me if that is an inaccurate statement.

      • You can choose not to drive, you cannot choose not to live.

        Civil resistance and civil disobedience are the only options left to patriotic Americans now.

      • You don’t want car insurance? You have every right to not drive.
        I don’t want health insurance. You can’t tell me I have no right to live.
        It is none of the government’s business if I get sick.

  7. I have still not gotten any answer that even comes close to my question.
    I file property and heating tax cedit only.
    I have two Daughters with dibilities.
    They recieve SS and Disibilty monthly plus they both work.
    I being the Payee and them being the beneficiaries of what they recieve from the State…who’s tax form do I put that income on…mine or theirs.

    • Hi Lanette,
      I’m sorry you didn’t receive your answer. I remember answering your comment. If you have legal right to receive the benefits and the checks are made out to you, you may have to include part of the benefits with your other income to see if it is taxable.

      One-half of the part that belongs to your child must be added to your child’s other income to see whether any of benefits are taxable to your child.

      TurboTax software will help you and ask you the appropriate questions to figure out if any of the income is taxable to you. Also, don’t forget if you have further questions, you can speak with our tax experts for free at

      Also, please see IRS publication 915 under who is taxed on page 4

      I hope this helped you.
      Thank you,
      Lisa Greene-Lewis

      • Lisa; Both the Social Security and the disiblity money has both my name as Payee and the Girls name as beneficiaries. They have no taxes taken out of the checks. That’s why I’m puzzled about who claims what. My only income is caregiving which also is not taxed…only Union Dues are taken out. That is why I only file Property Tax and Heating Tax Credit. I did go to the sight you gave me and read page 4 like you said…and it only confused me more.

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