Your Health Insurance and Taxes
Over the last year, we have seen lots of ups and downs as Washington has been looking to make changes to our health care.
We’ve seen bills get through the house to be then stood up in the Senate. There have been a load of rewrites and committees being formed to address these issues. We have seen dramatic days of voting and lengthy interviews afterward about who said yea or nay. So what changes have been made to our healthcare? You may have heard about the individual mandate being suspended under a new tax law for future years, but here is one change that will affect your tax return this year.On October 13, 2017, the IRS reversed a recent policy change in how it monitors compliance with the ACA individual mandate. For our 2018 filing season (filing 2017 tax returns) the IRS will not accept electronically filed tax returns where the taxpayer does not certify whether the individual had health insurance for the year. For paper returns that do not certify compliance with the individual mandate, they may be suspended pending receipt of additional information and any refunds due may be delayed.
To avoid refund and processing delays when filing your 2017 tax returns in 2018, taxpayers should indicate whether they and everyone on their return had health coverage, qualified for an exemption or are paying individual mandate penalty. This process reflects the Affordable Care Act‘s requirements and the Internal Revenue Service’s obligation to administer the law.
We hope that this information has been helpful for you as we are in the thick of tax season. Remember that if you ever have questions about your health care insurance, we love to be able to help you and are only a phone call away. If you have questions about taxes, we recommend talking to a tax preparer as they are equipped to help you understand the tax laws.