William Thien

The Affordable Care Act Panic and Your Taxes

Posted on: January 10, 2014

I had some questions about how I declare on this year’s taxes that I have health coverage, which I thought was currently a requirement of The Affordable Care Act that must be signified on your taxes THIS YEAR, and so I contacted my Congressman’s office, after being put on hold at a very busy IRS several times. Understandably the IRS is probably busy with similar questions.

An aide from my Congressman’s office called to give me a link to the page at the IRS web site which states essentially that we will not need to declare on our year 2013 taxes and will only need to make that declaration on our taxes that we have coverage when 2014 taxes are filed in 2015. So, for this year’s taxes, there is no requirement to state anywhere on your taxes that you have health coverage. Here is the link to the page at the IRS web site which details this information. See item number 24, http://www.irs.gov/uac/Questions-and-Answers-on-the-Individual-Shared-Responsibility-Provision

Here is it verbatim:
24. Will I have to do something on my federal income tax return to show that I had coverage or an exemption?

The individual shared responsibility provision goes into effect in 2014. You will not have to account for coverage or exemptions or to make any payments until you file your 2014 federal income tax return in 2015. Information will be made available later about how the income tax return will take account of coverage and exemptions. Insurers will be required to provide everyone that they cover each year with information that will help them demonstrate they had coverage beginning with the 2015 tax year.

Please do not take what I say here as tax advice. Always consult a tax professional when doing your taxes if you have questions. What I discovered apparently is not common knowledge. But this was a mystery to me and people whom I thought would know, business people, government administrators, you name it, all were coming up with explanations and machinations about what I was going to have to do on my taxes this year. It turns out, based on this page from the IRS, I will not have to do anything for THIS YEAR’S taxes. Next year when I file for 2014, I must be able to demonstrate that I have coverage.

I only refer to this here because to me it indicates at least one more year to legally stave off and perhaps nullify the provision in The Affordable Care Act which requires you to purchase health insurance. At least we have one more year to see to it that the law needs to preclude said requirement before penalties will set in.

I hope this information has been helpful to you.

Copyright 2014 William Thien

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