Obamacare’s No Insurance Penalty Finally Ends!

 President Trump and Congress have rescinded the penalty for having no insurance under the Affordable Care Act. This repeal goes into effect beginning January 1, 2019. If you were uninsured for 2018, unfortunately, you will probably need to pay the penalty.
The penalty for not having insurance for 2018 is the greater of $695 per adult and $3247.50 per child, plus the “Cost of Living Adjustment,” or 2.5 percent of your taxable income minus the federal tax-filing threshold. There are some exemptions from having to pay this penalty. Among these include having gross income below the minimum threshold for filing a tax return, or a general hardship, such as a death in the family, foreclosure, or unpaid medical bills. Those who do not fit the exemption criteria who had insurance for part of 2018 are allowed a single period of up to three months without “compliant” health insurance coverage. Thus, if you became unemployed in 2018 and regained employment that provided you major medical insurance within 90 days, you can avoid the penalty. An experienced tax professional can answer specific questions concerning your circumstances.
We do suggest you obtain some form of health insurance as hospitals and other providers usually charge uninsured patients higher rates. Consider enrolling in a fixed benefit hospital or short-term plan. Although these did not qualify for an exemption, they provide a considerable range of benefits at a lower cost than major medical insurance. Still, a major medical plan is the better option. An experienced tax professional can help you make a sound decision based on your situation. Of course, you are welcome to contact our office should you have questions about 2018 penalties or affording insurance.
For more information concerning Professional Tax Services, call 661-259-1967. Through the EZ2 Thrive program, Professional Tax Services provides unlimited complimentary advice on income and payroll taxes. For more information, visit www.scvprotaxservices.com.