Health Care Reform Creates New Complexities During Tax Season
Tax season is generally a time when many Americans feel confusion, but that sentiment will be compounded this year as the new Patient Protection and Affordable Care Act (PPACA) creates new procedures for taxpayers to complete.
As you file your taxes, take note of Line 61 of Form 1040, where you will need to input your information about your healthcare. According to PPACA, Americans must have health insurance through either a workplace plan, a government backed plan (e.g. Medicare), or enroll in an individual or family plan through the marketplace.
People who fail to secure coverage will face tax penalty fees, which have increased since 2014. In 2015, those without the legally required level of health insurance will pay $325 per adult ($162.50 per child) or 2% of their household income, whichever is greater.
For the 8 million people who secured coverage in 2013 based on their earnings for 2012, filing their 2014 taxes will mean reconciling their actual earnings with their projections. Some people will get money back on their tax returns, but others will find they owe the government money.
Chivaroli and Associates Insurance Services is a full-service brokerage firm specializing in the custom-design and placement of insurance and alternative risk funding solutions for your healthcare organization.