Impact of the Health Care Law on your 2015 Tax ReturnMarch 20, 2014
Basic tips to keep in mind about the new health care law and your health insurance choices.
There are a few basic tips to keep in mind about the new health care law and your health insurance choices. Your decisions now will have an effect on the income tax return you file in 2015.
- Many people already have qualified health insurance coverage and the law will not require them to take any other action other than to maintain their qualified coverage throughout 2014.
- If you do not have health insurance through your job or a government plan, you may be able to buy it through the Health Insurance Marketplace- HealthSourceRI In Rhode Island.
- If you purchase your insurance through the Marketplace, you may be eligible for an advanced premium tax credit to lower your out-of-pocket monthly premiums.
- Your 2014 tax return will ask if you had insurance coverage or qualified for an exemption. If not, you may owe a shared responsibility payment when you file in 2015.
A shared responsibility payment refers to the individual mandate tax and applies to everyone, including children and seniors. Generally the payment would be either a percentage of your household income or a flat dollar amount, whichever is greater. This payment went into effect on January 1, 2014 and applies to any month (1/12th of the annual payment for the months you do not have coverage) in 2014 that you were either not covered or qualified for an exemption. Once this is fully phased in (estimated by 2016) the individual mandate tax will be $695 per uninsured person or 2.5 percent of household Income over the filing threshold.
If you or your family does not have health insurance, talk to your employer about the coverage they offer, or visit The Marketplace online.