If you are filing taxes this year, it is very important to know a few things about Obamacare in order to make sure that you file correctly. Obamacare, also known as the Patient Protection & Affordable Care Act puts forth a fairly new set of regulations that state that every person in the United States must have health care coverage in order to meet the requirements agreed upon by lawmakers.
There are several options to choose from whether you go through the Healthcare Marketplace or through a private provider. Government provided insurance also counts, but you want to make sure that you are covered when at all possible. There are new rules and regulations in place that have changed a few things as far as the process for filing income tax paperwork goes, and you want to be sure that you know about them to avoid unnecessary tax penalties and delays in getting your refund back.
Under the Affordable Care Act, it is now necessary to have health insurance in most cases. Those who are eligible for health care benefits are required to obtain coverage whether it is from a private sector health insurance company or through your employer.
Medicaid and Medicare are also included in the types of insurance that are acceptable when it comes to the new health care laws under Obamacare. If you are within a certain income bracket and you do not acquire health insurance, you will be subjected to a penalty when you file your taxes, and this amount can be almost $1000 per family depending on how many people are in your household.
Some households fall into an income bracket that allows for an exemption due to having extremely low income for the year, and these families will not be subject to a penalty when filing taxes. When you meet with your preparer or file them electronically, your tax forms will ask all of the required questions to see which category you fall into monetarily.
Tax penalties will automatically be deducted from your tax refund and will not be optional under the parameters of the new Obamacare -related laws. Penalties for not having health insurance coverage will increase in small increments yearly and will continue to grow each time taxes are filed.
Most employers will report any employee’s insurance coverage to the IRS, so it will already be in the government’s record keeping system and will be easy for you to work with on your tax forms. Some taxpayers received a paper in the mail stating that they are exempt, while others have to file electronically to know whether or not they are exempt from penalty or having to purchase coverage if they find it to be expensive.
Many people will find that government subsidies will cover part if not all of their expenses when they choose a health care plan, and this will all be covered in the new tax forms that are required to be filled out by all who file. As long as you have minimum required coverage as regulated by your state, you will be fine and immune to penalties.
Obamacare has introduced many changes to tax laws and the way that you have to file. For most taxpayers, the process is simple and requires little to no paperwork, while with other people the process requires some documentation that should be provided to them by employers or the government itself. In either case, it is important to know what the new Obamacare laws are in regards to filing your taxes so that you do not incur any surprise penalties. Make sure to do your research before filing your taxes this year.