The Most Complicated Tax Season Yet
As if tax issues weren’t difficult enough, now the complex new health law could create more confusion. This tax season, expect to see the Affordable Health Care Act on your tax form when preparing your return. The reason health care now plays a part in your tax prep is because of the penalties associated with not having insurance.
An NPR article on the subject has this to say about the interplay between your tax obligation and your health care choices:
- The commonly held belief is that the penalty for not having health insurance is $95.00.
- The real truth is the penalty is $95.00 or 1% of your income, whichever is GREATER.
- For most taxpayers, the 1% penalty will be assessed rather than the flat $95.00 fee.
To add insult to injury, the fine increases to 2.0% in 2015. Given the possibility of being assessed this fee, it is smart to start tax planning for 2015 now. Tax professionals across the country are preparing for these changes, and you should as well. Being prepared helps make the shock of a large tax bill more palatable. If you are not sure how to report insurance issues on your taxes, enlist the assistance of a skilled legal tax professional. Once you have properly reported what you owe for health care, as it relates to your tax liability, you can then explore avenues to decrease or eliminate additional taxes being due.
For answers about tax penalties and health care, call our office for assistance. Let the professionals at Nielsen Law Group help you make sure your return is prepared properly. Call (480) 888-7111 or submit a web request here.