While almost 200 million Americans file a tax return every
year, there are some that have not needed to. However, that will change with
the implementation of the Affordable Care Act (ACA), also known as Obamacare.
Under Obamacare, in order for a qualifying individual to receive their tax
subsidy for purchased health insurance coverage, they will need to prove their
income level. The way the government is monitoring each individual’s income
level is through their federal tax return. If you’ve never filed a tax return
before because you didn’t make enough, you may need to file one now in order to
receive the tax subsidy for health coverage.
Typically, you must consider your age, income and filing status
when filing a tax return. Now, you must consider filing a return if you
purchase health care coverage because you could qualify to get money back to
cover some of the cost of that insurance. The only way the government will know
is by looking at your federal tax return.
Not sure if you qualify for a tax subsidy? Want to know how
much money you may qualify to receive? Check out the calculator on Liberty Tax’s Health
Care website. Punch in the numbers on our tax subsidy calculator and find out
your estimate. You can also check out our Health Care
Reform infographic for a run-down on the Affordable Care Act.
Disclaimer: Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information below. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.