Health Care

Health Care

How do health care reform and taxes connect? The Affordable Care Act is single largest change to the tax code in two decades. Find help navigating the complexities of the new health care legislation, Medicare, Medicaid and other medical deductions.

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ed3
Pioneer
Posts: 1
Registered: ‎01-25-2017

Health Care Question

I didnt know I didnt have heath care all last year through my parent. we ussualy do but I guess it got expesive this year. I didnt even ask till since i had no need to go to the doctor last. Do I still need to pay the fee??Also being 21 do I need submit taxes this year??

Associate (Neighbor)
Posts: 332
Registered: ‎04-03-2013

Re: Health Care Question

Hello and welcome to the community.

 

You have a lot of variables in play here so let me try to narrow a few things down:


Are you in school full time?

Will your parents be filing you on their tax return?

Are you working?

 

Under the assumption that you were going to school full time and not working, your parents will most likely be claiming you on their tax return and you will not be required to file. In this scenario you personally would not be responsible for the health care mandate penalty, that would belong to your parents.

 

I hope this is helpful,

Caleb

Tax Pro
Posts: 5,531
Registered: ‎02-23-2016

Re: Health Care Question

Hi ed3,

 

Welcome to the community.

 

Health insurance is one of my areas of expertise and I'll be glad to assist you.

 

You only need to file a tax return if:

  • You worked and had withholdings.
  • You had insurance through the health insurance marketplace and received premium tax credit in advance.
  • You earned enough income that your income exceeds your filing threshold ($10,300 if you're single and independent, $6,300 if you can be claimed as a dependent and only have wages).
  • You are an independent taxpayer and you're eligible for the American Opportunity Tax Credit for education expenses.

 

You are exempt from the penalty for not having health insurance if:

  • Your income was below your filing threshold.
  • Your lowest cost Bronze level policy through the marketplace costs more than 8.05% of your income for 2016.
  • You qualify for another exemption from the penalty.

 

I don't believe you will owe any penalty and depending on your income you may or may not need to file a tax return.  I'll be glad to help you determine what you'll need to do (if anything) and what if anything will affect your return.  Can you answer a few questions for me?  If you're not sure one any of them that's fine too.

 

  • Did you live with you parents except for when you were away at school?
  • Did you provided less than 50% of your own support (rent or mortgage, food, utilities, home or renters insurance, repairs)?
  • How much income did you earn in 2016?

We'll start with that and then go from there.

 

Louis,

Senior Tax Advisor (Tampa, FL)

Valued Pioneer
Posts: 4
Registered: ‎04-17-2017

Re: Health Care Question

I am claiming my 21yr old, who is a Full time College student, with a full ride football scholarship.  I purchased a medical Insurance the school recommended for the first 3 years of college.  The medical coverage cycle followed the school year (Aug-Aug).   The schools financial Aid advisor and I, worked to bring my son's debt down last year, to lift a hold on his account.  The end result, I wouldn't need to renew my son's  Health Insurance through the third party company, and of Sept 2016 through May 2017, he will be covered by the school.  I have no paperwork supporting this. What would you recommend?

 

Associate (Neighbor)
Posts: 443
Registered: ‎01-31-2014

Re: Health Care Question

If I understand what you posted correctly, you paid for your dependent son's insurance from Jan. 2016

through August 2016.   Then the school paid for your son's insurance from Sept. 2016 through Dec. 2016.

Is that correct?    If so, then he was covered by insurance all year and you have no insurance problems

when it comes to filing your 2016 tax return.

 

 

I hope that is correct and then I wish you good luck!