Since Obamacare, also known as the Health Reform Act, has become effective taxpayers are wondering how their tax refunds may be affected. This article is going to go into more details as to what taxpayers can expect.
What Does Obamacare Mean
Obamacare means that taxpayers have to have health insurance throughout the entire year. It can be via the marketplace, your job, or private insurance. The thing is you just have to have some type of health insurance. Those who do not have health insurance for the entire year can expect to face consequences.
For Those Who Cannot Afford Health Insurance
For individuals who cannot afford health insurance they will receive the Premium Tax Credit. It is applied directly to your premium. Alternatively, if you meet certain income requirements you also may be eligible for state assistance insurance such as Medicaid.
How Tax Refunds May Be Affected
If you decide not to purchase health insurance, you are going to be penalized by the IRS. There is a flat fee of $95 per adult and $47.50 per child yet the penalty will not go over $285.
Obamacare is now in effect. Therefore, you have to have health insurance. If you want to receive the maximum amount of your refund and avoid a penalty, it is important that you meet the insurance guidelines that have been put in place by the Health Reform Act. You work hard for your money so you should want to keep the maximum amount in your pocket.