The Whole Story: How Changes to the Health Care System Will Impact Your Taxes
Whether you are among the million of Americans without a health care coverage or you have coverage but fear how the new changes to the health care system will affect your taxes, it's time to put your nerves at ease.
The profile of the uninsured American. Who are the 30 million uninsured that may be eligible for the Affordable Act?
- Marital status: 1) Married - 32%; 2) Single - 52%; 3) Child - 32%.
- Health status: 1) Excellent - 26%; 2) Very good - 29%; 3) Good - 33%; 4) Fair - 9%; 5) Poor - 3%.
- Employment status: 1) Not in labor force - 32%; 2) Employed full-time - 42%; 3) Employed part-time - 17%; 4) Unemployed - 14%.
Health care: fact or fiction?
- Q: Will the requirement to purchase health care impact my 2012 or 2013 tax return?; A: No.
- Q: Will my tax return help me determine my eligibility for an insurance subsidy from the government to help me purchase health insurance under the new healthcare law?; A: Yes.
- Q: Does the dollar amount reported in box 12 with the code DD on my 2012 w-2 form affect my taxes this year?; A: No.
- Q: Will I be able to enroll in a health plan through state and federal exchange beginning October 2013?; A: Yes.
- Q: Are there additional filing requirements for me, or do I have to show me 2012 tax return when I purchase insurance from an exchange?; A: No.
- Q: Will I be required to purchase health insurance in 2014?; A: Yes.
- Q: Do the IRS and my employer provide the necessary information to state health insurance changes to determine my eligibility?; A: Yes.
- Q: Will the IRs penalize me, via my tax return, if I don't purchase health insurance in 2014?; A: Yes.
American Tax & Financial Center | Source: Internal Revenue Service, 2013.