Beginning in 2014, the mandatory health insurance coverage provisions of the Patient Protection and Affordable Care Act (ACA) go into effect. But the law does not require everyone to have health insurance, nor are all of the coverage requirements applicable to all types of health insurance.
Are you exempt from the health insurance mandate?
Most U.S. citizens and legal residents are required to have health insurance beginning in January 2014 or face a penalty tax that can be as high as one percent of taxable household income exceeding the taxpayer’s federal[emember_protected custom_msg=”Click here and register now to read the rest of the article!”] income tax filing threshold (increasing to two percent in 2015, and 2.5 percent in 2016). You can avoid the penalty tax if you already have health insurance for the entire year, and the coverage is obtained from one of the following:
• Medicare
• Medicaid or the Children’s Health Insurance Program (CHIP)
• TRICARE (for service members, their families, and retirees)
• The veteran’s health program
• Employer-provided health coverage
• A policy you purchase on your own that’s at least at the Bronze level
• A plan that is grandfathered (in existence prior to the enactment of the ACA that meets the requirements of grandfathered plans under the law)
However, certain groups are not required to be insured and thus are not subject to the penalty tax. Stay tuned for next month’s column to discover which individuals or groups are excluded from the health insurance requirements under the ACA.
CREDITS
column by Brad Dantzler
As federal and state tax rules are subject to frequent changes, you should consult with a qualified tax advisor prior to making any investment decision.
Raymond James & Associates, Inc. member New York Stock Exchange/SIPC
BIO: Brad Dantzler is a trusted financial advisor with over 18 years of experience. He is active in his church and community, has been an active President’s Club member for six years, and is currently president of the Winter Haven Library Board as well as a Winter Haven city commissioner.
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