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.
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.