How to Know if You Qualify for Health Care Tax Exemption
The 2017 tax filing season is upon us and it’s important for you to know how Health Care law may affect your taxes. Below you’ll find helpful tips from The W Tax Group on ways to determine if you qualify for a tax exemption under The Affordable Care Act.
What You Need to Know About The Affordable Care Act & Your Taxes
We know that understanding the Affordable Care Act can cause headaches, night sweats, and in some rare cases double vision, especially when it comes to how it affects your taxes. That’s why we’re here to help. Here are some things that you need to know about how health care legislation may affect your taxes in the 2017 tax season.
First, some basics on the Affordable Care Act (ACA):
- The ACA requires that you and every member of your family have qualifying health coverage called “minimum essential coverage.”
- If you don’t have the “minimum essential coverage,” then you need to qualify for a health coverage exemption.
- If you don’t have “minimum essential coverage” and you don’t qualify for a health coverage exemption, then the health care law requires that you pay a fee with your federal income tax for the months that you did not have coverage or an exemption.
That’s The Affordable Care Act in an easily swallowable pill form. If you’re one of those people who doesn’t have health insurance or falls into a qualifying exemption, don’t panic. We can help you find the right tax resolution for your situation. You can avoid paying the hefty fines or “shared responsibility payments” if you meet certain criteria for the tax year.
The W Tax Group has just the prescription for the health care related tax maladies. Hiring a professional tax attorney to help you deal with a complicated tax controversy can save you a lot of time and headaches. Think of it like going to the doctor when you’re sick. We are able to determine whether you qualify for an exemption by filing a Health Coverage Exemptions Form 8965 with your federal income tax return. If you’re thinking to yourself that you have no idea what that is, don’t worry because we do! It’s basically a checklist that indicates if you qualify for exemptions based on the following factors:
- You simply cannot afford the lowest-cost coverage available
- For some reason, you’ve had a gap in your coverage that is less than three consecutive months
- You’ve suffered a hardship that has prevented you from getting coverage
- Or you belong to a group that is specifically exempt from the coverage requirement based on income
When determining if you’re qualified for an exemption, you should know that the Federally-facilitated Marketplace does not grant exemptions anymore for members of a health care sharing ministry, members of Indian tribes, or those who are incarcerated. However, you can still claim these exemptions on a tax return.
Check out this list of all the exemptions that the IRS deems qualified. If you’ve still got that headache, feeling nauseous, or experiencing double vision, we’ve got your back. Contact The W Tax Group for any questions or concerns regarding your qualification for tax exemptions related to The Affordable Care Act. We’re here to help you and find the best tax resolution for you and your family! Call us at 1-866-716-7132, or send us an email at [email protected].
Lead Tax Attorney, The W Tax Group