Nova78
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- Dec 19, 2011
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How Your 2012 Tax Return Affects Health Care in 2014
For starters, beginning in January 2014, every American will be required to have health coverage, and many will qualify for [government]--YOU THE TAXPAYER- help to pay for it. Whether or not you do will depend on the income you report to the Internal Revenue Service on your 2012 tax return.
Getty Images
Barack ObamaFor many Americans, the health reform law passed in 2010 will forevermore tie their health to their taxes.
And even though the big changes required by the Patient Protection and Affordable Care don't start until 2014, the tax impact starts now.
"We're undergoing some of the biggest changes to the tax code in 20 years," said Meg Sutton, senior adviser for tax and health care services at tax preparation firm H&R Block Inc. "People need to start understanding how it will impact them."
Fewer than one-in four Americans understood that when H&R Block did a survey last fall, but an estimated 26 million people could be affected when they begin to turn to new health exchanges to buy their coverage for next year. Block is making a point of counseling their clients on whether they will qualify for subsidies.
Some people who are on the border may be able to reduce their 2012 income by making a last-minute retirement account contribution, for example, so they can get the extra help.
CARROTS AND STICKS
The new law's individual mandate depends on income-dependent subsidies and penalties to make it work.
This will primarily affect people who don't have insurance or buy their own and are likely to look to new state exchanges for their policies. When they choose their plans, they will receive tax credits if the cost of the coverage is deemed too high relative to their income.
Those who don't buy coverage for 2014 will face penalties of $95 or 1 percent of household income, whichever is greater. That will increase each year to $695, or 2.5 percent, in 2016.
So if your a deadbeat ,or flop out kids like gerbils ,a crackhead,drunk,lazy ass-wipe,or have a good tax accountant ,the rest who work hard will have to pay for your free health care -what a County !
For starters, beginning in January 2014, every American will be required to have health coverage, and many will qualify for [government]--YOU THE TAXPAYER- help to pay for it. Whether or not you do will depend on the income you report to the Internal Revenue Service on your 2012 tax return.
Getty Images
Barack ObamaFor many Americans, the health reform law passed in 2010 will forevermore tie their health to their taxes.
And even though the big changes required by the Patient Protection and Affordable Care don't start until 2014, the tax impact starts now.
"We're undergoing some of the biggest changes to the tax code in 20 years," said Meg Sutton, senior adviser for tax and health care services at tax preparation firm H&R Block Inc. "People need to start understanding how it will impact them."
Fewer than one-in four Americans understood that when H&R Block did a survey last fall, but an estimated 26 million people could be affected when they begin to turn to new health exchanges to buy their coverage for next year. Block is making a point of counseling their clients on whether they will qualify for subsidies.
Some people who are on the border may be able to reduce their 2012 income by making a last-minute retirement account contribution, for example, so they can get the extra help.
CARROTS AND STICKS
The new law's individual mandate depends on income-dependent subsidies and penalties to make it work.
This will primarily affect people who don't have insurance or buy their own and are likely to look to new state exchanges for their policies. When they choose their plans, they will receive tax credits if the cost of the coverage is deemed too high relative to their income.
Those who don't buy coverage for 2014 will face penalties of $95 or 1 percent of household income, whichever is greater. That will increase each year to $695, or 2.5 percent, in 2016.
So if your a deadbeat ,or flop out kids like gerbils ,a crackhead,drunk,lazy ass-wipe,or have a good tax accountant ,the rest who work hard will have to pay for your free health care -what a County !
