Did you know that the Health Care Reform could affect your taxes? Here are some ways in which your taxes will be affected by the health care reform, especially if you do not have health care.
Health Insurance Available to All
Under previous legislation, not only was health insurance not required but often it was denied to people who really needed it. Under Obamacare, you cannot be denied coverage if you have a pre-existing condition. The age limit for staying on parents’ insurance has also been extended to 26 years old.
Those that are not provided with health insurance and earn less than $45,960 a year are eligible for a government subsidy to help pay for the insurance. This will be applied as an immediate tax credit when you purchase the plan.
Penalties on Tax Return if not paid by March 31
Take advantage of the Affordable Care Act while it’s still affordable and before any penalties and fees are added on. If you don’t have health insurance by March 31, you will get a tax penalty on your tax return next year. The fees are $47.50 per child, $95 per adult, and in order to avoid exorbitant fees for larger families, the fee is capped at $285. However, next year the fee will increase from $95 per adult to $695 per adult with a cap of $2,085.
Get the coverage you need by researching the health insurance plans available to you in your state today and get the tax benefits you need as well.