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Health Care Tax Tips

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Affordable Care ActStarting in 2014, you must choose to either have basic health insurance coverage (known as minimum essential coverage) for yourself and everyone in your family for each month or go without health care coverage for some or all of the year.

Below are a few basic tips to keep in mind about the new health care law:

  1. Most people already have qualified health insurance coverage and will not need to do anything more than maintain qualified coverage throughout 2014.
  2. If you do not have health insurance through your job or a government plan, you can buy it through the Health Insurance Marketplace.
  3. If you buy your insurance through the Marketplace, you may be eligible for an advance premium tax credit to lower your out-of-pocket monthly premiums.
  4. Your 2014 tax return will ask if you had insurance coverage or qualified for an exemption. If not, you may owe a shared responsibility payment when you file in 2015.

 

What should you do now?

If you or your family does not have health insurance, you will need to either seek an exemption or make an individual shared responsibility payment for the period that you are not covered with the 2014 income tax return you file in 2015.

If you choose to have health care coverage, qualifying coverage includes:

  • Health insurance coverage provided by your employer (including COBRA and retiree coverage)
  • Health insurance coverage you purchase through a Marketplace
  • Medicare, Medicaid or other government-sponsored health coverage including programs for veterans, or
  • Coverage you buy directly from an insurance company.

Talk to your employer about the coverage they offer, or visit the Marketplace online.

Find out more about the health care law and the Marketplace at www.HealthCare.gov.

Find out more about the premium tax credit and the shared responsibility payment at www.IRS.gov/aca.

 

 

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