While we still have to file our taxes, two changes this year have given us a little wiggle room! This year you have THREE EXTRA DAYS to file your taxes. Due to holidays, the deadline is Tuesday, April 18. Other changes this year? You know that little box that asks you if you had healthcare coverage for all 12 months? The IRS is going to give you a little wiggle room and process your return if for some reason you forget to check the box. Why is the IRS being so nice you might ask? After reviewing the Jan 20, 2017 executive order regarding the Individual Shared Responsibility provision, the IRS decided the best way for them to “reduce potential burden” of taxpayers would be to process returns as normal and follow up as needed with taxpayers.
Read on to learn more about the Individual Shared Responsibility provision and the executive order affecting it.
Remind me…what is the Individual Shared Responsibility provision?
The Individual Shared Responsibility provision is a part of the Affordable Care Act that requires you and each member of your family to do at least one of the following:
- Have minimum essential coverage
- Qualify for a health coverage exemption
- Make a shared responsibility payment (penalty) with your federal income tax return for the months you did not have coverage or an exemption.
Want to see if you qualify for an exemption or will have to pay a penalty? The IRS has a tool to help you determine your status.
What does this mean for my taxes?
New this year, the IRS implemented system changes that would reject tax returns in which the taxpayer didn’t provide information related to health coverage. However, after the executive order was issued, the IRS amended their process to allow the processing of tax returns where the taxpayer does not indicate coverage status.
This is great news for taxpayers who do not have health insurance, as this means their tax returns will not be rejected outright. Rather, they will be processed and refunds will be issued. The IRS will follow up with individual taxpayers at a later date regarding any questions they might have.
Do I still need health insurance?
Yes! The Affordable Care Act (ACA) is still the law of the land until Congress changes it. Taxpayers still have to follow the law and have qualifying health insurance or pay the penalty. The penalty is either 2.5% of your household income or a flat dollar amount ($695/adult, $347.50/child) whichever is greater.
Take Command Health Can Help!
Still looking for health insurance? Take Command Health can help you navigate through the health insurance marketplace, apply for tax credits, and pick a plan that fits your needs.