With the implementation of the Affordable Care Act, also known as “ObamaCare,” health care coverage is now required. This can be a heavy burden when you’re on a tight budget. Luckily, the IRS has allowed for a premium tax credit for those who have moderate incomes and need help paying for their health care coverage. According to the IRS, you generally have to meet these three rules to be eligible for the premium tax credit: Get health insurance coverage through the Health Insurance Marketplace Have a household income between one and four times the federal poverty line Not be eligible for other coverage, including Medicare, Medicaid, or sufficient employer-sponsored coverage Be … [Read more...]
Affordable Care Act Individual Shared Responsibility Payment
Health care coverage is now required under the Affordable Care Act, also known as “Obamacare.” If you do not have coverage, the IRS can charge you with an individual shared responsibility payment when you file your taxes in 2015. In their article on the subject, the IRS lists three reasons why you would have to make a payment: You have not signed up for a qualifying form of health insurance coverage. You had a gap in coverage in 2014. (If it was less than 3 consecutive months, you might qualify for an exemption.) You didn’t qualify for an exemption. The amount you owe will be based on the greater of: 1% of your household income that is above the tax return filing threshold … [Read more...]
Affordable Care Act Tax Exemptions
As of 2014, if you do not have health insurance coverage or have a gap in coverage, you will have to either pay an individual shared responsibility fee or file for an exemption when you file your taxes in 2015. Wondering how to make the right choices for your health care tax provisions? Here are some basics to help you determine if you qualify for an Affordable Care Act tax exemption. According to the IRS, people who qualify include those who: Do not have access to affordable coverage Have a gap of less than three consecutive months without coverage Qualify for one of several other exemptions, including: having a hardship that prevents you from obtaining coverage, … [Read more...]
Why You Might Receive a Notice from the IRS
April 15th has come and gone and the last thing you want is to hear from the IRS; however, sometimes the IRS needs to follow up on tax-related issues and they will send notices that you might need to respond to. Don’t panic! Not all of these letters contain bad news--sometimes you could even be receiving more money for your tax refund! Here are some common reasons why people receive IRS notices: Balance Due You Qualify for Additional Tax Credits A Change to Your Estimated Tax Credit Amount A Change to a Previous Year’s Refunds Overpayments Issues with Direct Deposit Changes to Filing Requirements Confirmation of Tax Return Receipt Address Update Needed To learn … [Read more...]
Affordable Care Act Tax Exemptions
If you do not have health insurance coverage or have a gap in coverage in 2014, you will have to either file for an exemption or pay an individual shared responsibility fee when you file your taxes in 2015. According to the IRS, people who qualify for an Affordable Care Act tax exemption include those who: Do not have access to affordable coverage Have a gap of less than three consecutive months without coverage Qualify for one of several other exemptions, including having a hardship that prevents you from obtaining coverage, or belonging to a group explicitly exempt from the requirement The IRS also created a specific hardship exemption for those who purchased insurance … [Read more...]