Do the new health care rules change an individual's tax status?

One provision of the new health care laws - namely the law that allows parents to continue coverage for dependents up to age 26 - has many families wondering if this will affect their tax status.

One woman wrote into McClatchy Newspapers seeking advice from tax expert Jesse Weller about this issue. Currently, she is able to claim "Head of Household" status on her tax forms for her children until they reach the age of 23. As the laws now allow parents to keep dependents on their coverage until 26, the advice seeker asked if she could continue claiming them on her federal taxes up through that age.

Weller's response: No. He reported that even though the new laws will extend coverage to more young adults, they do not alter any of the tests that are used to assign an individual's dependency or tax filing status.

Many of the new laws enacted that relate to health care and employment can be confusing and complicated. But speaking with a tax preparer about how the changes might affect an individual's taxes can clear up any questions.


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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 provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.

Posted To: Tax Ranger's Blog By: Tax Ranger On: Tuesday, August 31, 2010
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