The Affordable Care Act may affect your 2013 taxes but TaxACT can help.
The most significant implications of the Patient Protection and Affordable Care Act of 2010, also known as “Obamacare,” are just around the corner. In addition to having wide-ranging effects on health insurance in 2014 and 2015, the legislation also impacts income taxes.
“Though the Affordable Care Act has implications on income taxes, you can still act confidently when preparing your tax return with an online solution,” says TaxACT spokesperson Jessi Dolmage. “The question and answer interview will cover all the tax law changes.”
The health care act included several tax law changes for 2013 federal income tax returns due April 15, 2014:
The health insurance requirement doesn't have tax implications for another year. If you have health insurance, your online tax solution will guide you through the simple process of reporting it on your 2014 tax return due April 2015. If you don't have health insurance for a total of three or more months in 2014, you may pay a penalty that's reported and calculated on your tax return. Tax programs will calculate the amount based on number of uninsured individuals in your household and household income.
Uninsured individuals can shop and apply for health insurance through online “marketplaces,” also called “exchanges,” starting Oct. 1. States will have their own marketplaces, use the federal government's Health Insurance Marketplace or a hybrid of the two. Enrollment closes March 31, 2014.
If you don't have access to minimum required employer-provided insurance and purchase insurance through a marketplace, you may qualify for an advanced premium tax credit applied directly to your monthly premiums. Eligibility and amount are based on the cost of marketplace premiums and your household size and income. If you do not take advantage of the advanced premium tax credit, you can still claim the refundable credit on your 2014 tax return. Cost-sharing subsidies may also be available for other health care expenses such as deductibles, copayments and coinsurance.
Whether you have a simple or complex situation, TaxACT makes it easy to navigate the tax implications of the Affordable Care Act anytime, anywhere. Prepare, print and e-file your federal taxes free at www.taxact.com/affordable-care-act. Visit the Health Insurance Marketplace for information about insurance options at www.healthcare.gov.