If You Did Not Have Full Year Health Coverage in 2017, Read This Important Information Now!
By Chris Whalen CPA
The current law dictates that taxpayers who do not have (MEC) Minimum Essential (Health) Coverage, may have to pay a penalty when filing their tax returns.
MEC is any insurance plan that meets the Affordable Care Act requirement for having health coverage. To avoid the penalty for not having insurance you must be enrolled in a plan that qualifies as minimum essential coverage (sometimes called “qualifying health coverage”). Examples of plans that qualify include: Marketplace plans; job-based plans; Medicare; and Medicaid & CHIP.
If you will have been covered with MEC for the entire year of 2017, then you should have nothing to worry about.
If you have had no health insurance coverage, or any gaps in your 2017 coverage, you will need to report that on your tax return and calculate the penalty.
Also, if you have received Obamacare Subsidies, remember these need to be reconciled when filing your tax returns. If your actual income in 2017 is higher than what your subsidies were originally based on, you may need to pay some of those subsidies back when you file your taxes.
Everyone with health insurance coverage for any part of 2017 should receive a form 1095. It is very important that you include this form with your other tax related documents in the package when preparing your tax returns.
If you are concerned about your 2017 health insurance coverage and how it may impact your 2017 income taxes, please call. It is better to plan now, then be surprised on April 15!
Tax Laws are complex.
It is very easy to make mistakes that can incur penalties.
Do you have a Tax, Accounting or Business Question?
Chris Whalen CPA (732) 673-0510.