The new Affordable Health Care Law means there will be changes for tax preparers across the United States. Beginning on October 1, 2013, the Federal government will begin open enrollment for millions of Americans.
This will be new territory for EROs across the United States because your customer's tax information will affect their health insurance. It is estimated that many Americans know little to nothing about how the upcoming Health Care laws will affect them and their tax return. It will most likely fall upon the tax preparers to educate and help tax payers file for premium tax credit eligibility in 2014.
The bottom line is that many Americans don’t understand what the Affordable Health Care Law will mean to them. Fortunately for you, this article will help shed some light on some of the questions that your clients will ask you in the very near future. Let’s take a look at a few of them:
A. The purpose of the Affordable Health care Law is to provide affordable health care to all Americans and reduce the overall cost of health care. The new law is expected to cover over 30 million people through a combination of public and private sector health insurance expansions and was enacted on March 23, 2010. The law is slated to be phased in over 4 years. The Affordable Health Care Law requires health insurance companies to cover all applicants and offer the same rates regardless of pre-existing conditions or sex. The law provides a number of methods to employers and individuals to increase the coverage rate and health insurance affordability that includes mandates, subsidies, and tax credits.After being signed into law, many Americans started taking advantage of many of the law’s provisions that included:
Open enrollment for all Americans begins on October 1, 2013 and each American citizen must have minimum essential health insurance coverage by January 1, 2014 or be subject to a penalty.A person has minimum essential health insurance coverage if he or she has a:
A. Anyone that doesn’t have minimum essential health insurance coverage may have to pay a penalty on their 2014 tax return. The Affordable Health Care Law penalty increases every year that an individual does not have health insurance.The penalty is slated to be 1/12th of the greater of:
The penalty will be half of the amount for people under 18 and it is calculated for each month you or your dependent(s) do not have coverage.There are several exclusions to the penalty that include:
A. If someone doesn't have health coverage in 2014, he or she may have to pay a penalty and also pay for all of their health care needs. The health care law requires everyone that can afford health coverage to take responsibility for their own health insurance or face a penalty. Open enrollment begins on October 1, 2013 and ends on March 31, 2014. After March 31, 2014 they can only get new private health insurance through a special enrollment period if they have a qualifying life event.
To avoid the penalty, your customers need insurance that qualifies as minimum essential coverage.If your clients are covered by any of the following below they are considered covered and won't have to pay a penalty:
These are just a few of the common questions. For additional answers and training on what the Affordable Health Care Laws means to your customers TaxSlayer Pro encourages you to attend our Annual Seminar Held on November 13th - 14th, 2014.