Taxes and Healthcare - How Personal Tax Returns Relate to Health Care


    In this continuing series, we have examined how the landscape of taxes and accounting has changed from one year to the next.  Small businesses have the ability to claim a greater tax credit and expense related to employee insurance premiums. The qualifications are clear, and the rewards are tangible.  However, as of 2014, everyone needs to have their own health insurance.  For those who must provide their own coverage, their most recent tax return is absolutely necessary.

    One must file a tax return in order to qualify for mandatory health care coverage.  Some people received an extension for their 2014 Tax Return and can legally file by October 15.  In these cases, the 2013 Tax Return was used as the basis to determine health care payments and possible credits.  Those in this situation must file their 2014 Tax Return ASAP.  This is true if income remains the same, or has changed.  Marketplaces will determine eligibility for cost reductions and assistance in paying premiums for 2016, before this year is over.  Filing now will lower the chance of having some sort of interruption in receiving help with insurance payments.

    If there is no 2014 Return filed in time, all assistance with health care payments will stop and the full cost for premiums and covered services will be paid by the individual.  In addition, the IRS may determine that one now must pay back the health care credit and payment assistance they had received before.  This is also true if the income being reported is much higher from year 2013 to 2014.  It would seem to be wise to file your 2014 Tax Return as soon as possible, so that such an important matter as health care coverage can be taken care of.  What do you think?

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