HealthCare and Taxes? It’s Easier Than You Think

This year was the first year that the Affordable Care Act -which is designed to ensure everyone carries health insurance – is required. There are a lot of people unsure what to expect and some are nervous about how to file, and what to do. But TurboTax has simplified the ACA process and has done all the hard work for you, making filing your taxes just as easy as in the past – (check out the enrollment guide for more information). For most people complying with the ACA, it’s as easy as checking a box on your form to confirm you have insurance.     It really is a lot easier than you thought – taxpayers will fall into 3 categories when it  comes to the ACA and taxes: 1.The Insured – for most people who are complying with the ACA the new tax law isn’t a big deal. You’re insured through your employer, Medicaid, Medicare, or a private provider. You will just check a box confirming that you do have health insurance, and proceed with your tax form as usual. No need to pay someone extra to do this simple step for you! 2. Insured Through Exchanges – This year 8 million people became insured through healthcare.gov or their state exchange (Congressional Budget Office). If you were one of these people you will receive a 1095-A form from healthcare.gov or your state exchange and just input the information just like you would the details from your W-2 forms. Pretty simple, just a few extra steps. 3. The Uninsured – If you are one of those who do not have insurance, and don’t qualify for any exemptions, you will pay a penalty of about $95, or 1% of your income. If you do happen to be uninsured, you still have time to look into buying insurance during open enrollment which runs from November 15, 2014 through February 15, 2015. If you still are uninsured during the rest of the year TurboTax has a free calculator for you to estimate your tax penalties. The penalty is based on your income and family size. If you are uninsured, please make sure to check and see if you qualify for an exemption! About 1/2 the people that are uninsured (over 23 million) could qualify, but are unaware and will end up paying unnecessary penalties! There are a number of reasons why you may be exempt from a penalty for not having health insurance – like low income, family size, etc. TurboTax has a free tool to help you understand the exemption process and to see if you qualify!     Make sure you are prepared for the 2014 tax season – and remember, TurboTax has you covered! You don’t have to spend your much needed tax refund on fees to pay a tax preparer, visit TurboTax and get all your questions answered!

I was selected for this opportunity as a member of Clever Girls and the content and opinions expressed here are all my own.