Taxation – Highlighted in the dictionary (Photo credit: efile989)
So – you’re considering your income tax return (or maybe you’ve already filed) and you’re wondering if there are things you need to know with regard to Obamacare. Fortunately, it’s not much (for most folks), for your 2013 return anyhow. Next year will be a different story.
The IRS recently produced their Health Care Tax Tip HCTT-2014-10 which lists some tips about how the health care law impacts your 2013 tax return. The actual text of the Tip is below:
What do I need to know about the Health Care Law for my 2013 Tax Return?
For most people, the Affordable Care Act has no effect on their 2013 federal income tax return. For example, you will not report health care coverage under the individual shared responsibility provision or claim the premium tax credit until you file your 2014 return in 2015.
However, for some people, a few provisions may affect your 2013 tax return, such as increases in the itemized medical deduction threshold, the additional Medicare tax and the net investment income tax.
Here are some additional tips:
Filing Requirement: If you do not have a tax filing requirement, you do not need to file a 2013 federal tax return to establish eligibility or qualify for financial assistance, including advance payments of the premium tax credit to purchase health insurance coverage through a Health Insurance Marketplace. Learn more at www.Healthcare.gov.
W-2 Reporting of Employer Coverage: The value of health care coverage reported by your employer in box 12 and identified by Code DD on your Form W-2 is not taxable.
Information available about other tax provisions in the health care law: More information is available on www.IRS.gov regarding the following tax provisions: Premium Rebate for Medical Loss Ratio, Health Flexible Spending Arrangements, and Health Saving Accounts.
More Information
Find out more tax-related provisions of the health care law at www.IRS.gov/aca.
Find out more about the Health Insurance Marketplace at www.Healthcare.gov.
Sterling Raskie, MSFS, CFP®, ChFC®
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I would love to know how 2014 provisions will be different with Obamacare. Will we need to put our insurance information on a tax form to prove we have insurance, for example? What will the fee be for people who don’t have insurance? Thanks!