The ACA (affordable health care act) affects all federal individual income tax returns filed in 2015 for the 2014 calendar year and it is tied to both premiums and penalties. It pays to understand how your choice affects your taxes. It’s also important to know that penalties for not having qualifying health insurance are steadily increasing.
There is no doubt the ACA requirements can be very confusing, but we are here to help. ComproTax professionals are up-to-date on current policies and will explain how the ACA affects your taxes. Allow us to demystify the tax implications of the ACA for you.
Here are a few basic scenarios to help put your mind at ease:
You may not be affected. If you have a traditional job with employer-paid benefits, you will probably not be affected. If your spouse and kids are all on the same employer-sponsored plan, it’s not really going to be a big deal for you because you likely meet what the government calls "minimal essential coverage."
You may qualify for tax credits. If you buy health insurance through the government's marketplace, that credit can be applied directly to their insurance provider to offset their monthly premiums.
You may qualify for an exemption. There are different kinds of exemptions. Some you claim on your federal tax return. Others, including hardship exemptions, you apply for with a paper application. If you’re covered by a plan that qualifies as “minimum essential coverage” you don’t need to pay the fee or get an exemption.
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