When it comes to your health, it is important to get the right insurance that is going to cover you. Most people assume that they are going to be fine when an emergency hits, but when that does happen, they are often buried in medical bills and since they are out of work, they are at a loss of ways to fix this issue and pay the bills back. And with the Affordable Care Act, you are required to have some health insurance to help you to get things paid off if you do need to visit the doctor.
Most taxpayers don’t understand how the Affordable Care Act works. They know that it has done into effect, but they don’t know how much insurance they need to have or what will happen if they don’t have the right amount of health insurance for themselves or for their family. This is going to have influence not only on the care that you are able to get at the doctors’ office, but also what happens on your tax return. If you would like to learn more about how your health insurance can help out with your tax return, make sure that you contact your tax professional right away to get started.
Requirements for Health Insurance
It is now a requirement for all taxpayers to have health insurance to cover themselves and their families. But you are not able to pick out just any random insurance. You need to have certain requirements met in order to get the health insurance that is going to cover your needs and will also work when it comes to tax time.
When you are picking out a type of health insurance, make sure that you are going for some that covers everything. You will need to have dental, emergency care, vision, maternity care, and much more. To find out the full requirements that you will need, make sure to talk to your tax professional before getting started. Going with an insurance plan through your work or through the marketplace is often the best for you to get all of the requirements met.
If you were covered for health insurance through the year, you will be able to avoid some of the penalties that others will have to face at the end of their tax season, just make sure that you are fully covered for the whole year. Talk to your tax professional ahead of time to learn the best ways to add your health insurance onto your tax return.
Penalties for Avoiding Health Insurance
One thing that catches a lot of taxpayers off guard when it comes to health insurance is there are now penalties for not having this coverage. In the past the penalties were simply having to pay your own medical bills when they came up, but since the Affordable Care Act came around, there are higher penalties and they are usually going to be assessed when you file your tax return at the end of the year.
The amount of the penalty will vary each year. It will depend on how many people are on your family and how many of them had insurance for the year. Sometimes it will vary based on how much insurance you had at different parts of the year. And the penalty is going to be raised each year in order to keep up with inflation. This means the longer you go without health insurance, the more you will need to pay in penalties.
Ways to Purchase Health Insurance
There are several ways you will be able to purchase your health insurance. The first place to look is through your current job. Often these will allow you to pick out a plan that your employer will help out with, saving money and ensuring that you are getting a good health plan in the process. If you have an employer who is willing to help out with the insurance, this is a good way to get your coverage.
Another option is to look through the healthcare marketplace. This allows you to look at the different plans that are available in your area and you can compare prices and coverage that works the best for your needs. You will be able to put in your income and other things that you need to determine which plan is going to work the best for you.
You can also choose to go through an independent plan as long as it has the amount of coverage that you need. There are some companies that might be local to your town that will have some great coverage but aren’t available through the other options listed above. As long as you are able to prove that you have health insurance at the end of the year and it has the right amount of coverage that is required by the federal government, you are going to be fine with choosing someone on your own.
Understanding all of the rules that come with purchasing health care through the Affordable Care Act is never easy. This law was passed and most people don’t know what is all going on. When you are ready to pick out the health insurance that works for you and want to make sure that it works for your tax return without penalties, contact our offices to work with a tax professional to get the best results.
Precision Financial Services