A little while back our family two hospitalizations, one with the birth of our twins and the other with our daughter when she tried to drown. I shudder to think what would have happened to our family if we had not had health insurance to cover some of that cost.
With laws in place now that require all Americans to carry insurance that has meant there are a few additional steps when you go to file your taxes. Open enrollment is November 1st- Jan 31st and even though you probably don’t want to start thinking about filing your taxes yet, you will want to consider a few things with your insurance plan that will make tax season easier.
You’ll have to state your insurance status when you file taxes. Your 2015 taxes will be the second year when you’ll have to include your insurance information. TurboTax makes this easy. For nearly 80% of taxpayers, reporting your insurance is as easy as checking a box in TurboTax. TurboTax doesn’t charge any extra fees for this and you don’t have to mess with filing any forms.
You’ll be fined without insurance. If you are considering going without insurance, be aware that there are some pretty hefty fines that you’ll be hit with if you do. The 2016 health insurance penalty is $695 per adult or 2.5% of your household income.
If your are covered through your employer, government program, or private insurance watch for a form to be sent out. You may receive a form 1095-B or C in the mail. According to the IRS, you don’t need this form to file your taxes but definitely check it for accuracy and keep it for your records.
Do you qualify for exemptions or subsidized insurance? Before choosing a plan, look into whether or not you qualify for exemptions or subsidized insurance plans. I really wouldn’t recommend going without insurance but if you choose to, see if you can avoid a fine by qualifying for an exemption. TurboTax offers a suite of free tools and calculators that can help you easily see if you quality for an exemption or health care assistance.
I was selected for this opportunity as a member of Clever Girls and the content and opinions expressed here are all my own.