Health Care Law and 2013 Tax Return
What do you need to know about health care reform and your 2013 tax return?
According to the IRS most people will not see the impacts of the Affordable Care Act on their 2013 federal income tax return. Many thought the groundbreaking individual shared responsibility provision would carry a large burden.
In this provision under the Affordable Care Act, the federal government, state governments, insurers, employers and individuals are given shared responsibility to reform and improve the availability, quality and affordability of health insurance coverage in the United States. Starting in 2014, the individual shared responsibility provision calls for each individual to have minimum essential health coverage (known as minimum essential coverage) for each month, qualify for an exemption, or make a payment when filing his or her federal income tax return (IRS.gov).
Although, there is a sizeable demographic that is effected by several changes in their 2013 tax return. These include the hikes in the itemized medical deduction threshold, the additional Medicare tax and finally the net investment income tax.
The following are TIPS issued by the IRS for this year’s tax return support:
Filing Requirement: If you do not have a tax filing requirement, you do not need to file a 2013 federal tax return to establish eligibility or qualify for financial assistance, including advance payments of the premium tax credit to purchase health insurance coverage through a Health Insurance Marketplace. Learn more at HealthCare.gov.
W-2 Reporting of Employer Coverage: The value of health care coverage reported by your employer in box 12 and identified by Code DD on your Form W-2 is not taxable. Learn more.
To read more visit the IRS.gov website at: http://www.irs.gov/uac/Affordable-Care-Act-Tax-Provisions-Home
Or visit: HealthCare.gov