How Tax Refunds May Be Affected By Obamacare

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.

Closing Thoughts

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.

 

 

 

Redmond CPAAbout Redmond CPA

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!

  • Huddleston Tax Accountants / Huddleston Tax CPAs – Redmond, WA
    Certified Public Accountants Focused on Small Business
    8201 164th Ave NE Suite 200 / Redmond WA 98052
    425-483-6600

    Huddleston Tax CPAs & accountants provide tax preparation, tax planning, business coaching,
    QuickBooks consulting, bookkeeping, payroll, offer in compromise debt relief, and business valuation services for small business.

    We serve Tukwila, Auburn, Federal Way. We have a few meeting locations. If you are looking for a Redmond CPA firm, get in touch with us! Call to meet John C. Huddleston, J.D., LL.M., CPA, Lance Hulbert, CPA, Grace Lee-Choi, CPA, Jennifer Zhou, CPA, or Jessica Chisholm, CPA. Member WSCPA.