Today, the Supreme Court ruled to uphold the current Affordable Care Act law, allowing millions of Americans to continue to have access to subsidies to help them pay for health insurance, even if they purchase health insurance in the Federally run Health Insurance Marketplace.
Tax season 2015 will be the second year in which you will be required to report your health insurance status on your tax return, and we expect that helping ensure clients are in compliance with the Affordable Care Act will be an even more straightforward process this time around.
Here are three quick tips to help your clients maximize their tax return if they have health insurance through the Marketplace:
- If your clients receive an advanced premium tax credit or subsidy to help pay for health insurance, they should update their financial information and status changes by contacting the Marketplace, so that their tax credit is kept as accurate as possible throughout the year. This will ensure they are getting as much help as they’re eligible for, and will also help avoid having to pay back any extra tax credits.
- They may also only want to take half of the subsidy up front if they are able, so come tax season, they may get the rest of the subsidy back as a tax refund when you file their taxes, and there is a substantially lower chance they will have to pay back.
- Finally, if any of your clients are uninsured and missed the 2015 open enrollment, under the Affordable Care Act, certain life changes can trigger what is considered a “qualifying life event” that may make them eligible to sign up for health insurance outside of the annual open enrollment period.
Editor’s Note: Intuit® will continue to keep you informed of any changes to the ACA for you and your clients. Be sure to check out our Affordable Care Act Resource Center.
- About Mike D’Avolio
Mike D’Avolio Mike Davolio, CPA, JD, Senior Tax Analyst – With Intuit / Lacerte since 1987 – Monitor legislative and regulatory activity – Circulate information to employees and customers – Analyze and test software – Train employees and customers – Government liaison – Public relations representative