Are you still on the hook to have health insurance?

100-dollar-bill-with-covid-19-mask

With the implementation of the Tax Cuts and Jobs Act bill, there were some important changes to Affordable Care Act. What you may refer to as ObamaCare. The biggest misconception of the new tax law is that the mandate to have health insurance was eliminated effective 2018. This is both right and wrong.

According to the IRS, ObamaCare continues to be the law of the land and for tax year 2018. You are still required to have insurance. Not having insurance will result in a penalty up to $695 per adult and $347.50 per child. Or 2.5% of your household gross income, whichever is greater. The IRS will NOT accept returns that do not address the ObamaCare question. You will have to answer yes or no to having health insurance when you file your tax return this year.

Health Insurance

Beginning January 1, 2019, the Affordable Act continues, but the mandate to have health insurance does not. This means that when you report your taxes in 2020 for your 2019 income. The IRS will no longer be instructed to penalize you for not having health insurance.

You can visit www.healthcare.gov to learn more about the Affordable Care Act and options for health care.

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