Obama Care, Insurance, and Taxes

By BreC Latest Reply 2015-01-30 05:31:03 -0600
Started 2015-01-23 18:20:32 -0600

Today my husband and I had our taxes done. One question we were asked was if we had insurance throughout 2014. Yes we did/and still do. The lady showed us the penalty we would have had to pay under the Obama Care plan if we had not had insurance. The amount was $1,396. I didn't think to ask if that was based on what we grossed but that is a lot of money for us. My son spent the first half of 2014 looking for a job, then when he finally found one he had to wait the 90 days before he could apply. So would he be penalized for the time he didn't have insurance. Whatever the case, the penalty would come out of the tax refund. And most likely if anything is owed, the penalty would be added to that. There are so many out there who can't find a job and as such don't have money to pay for food, much less insurance. Seems to me to be a never ending circle of problems.

Tags: off topic

39 replies

Anonymous 2015-01-30 05:31:03 -0600 Report

I wonder how many of you people that are pissed at the Obumma Care voted for him. I am proud to say I did not vote for him.

LindaDun 2015-01-27 17:57:19 -0600 Report

I knew Sebelius. She was over Kansas. She had been in insurance before Governor. I do not think that she did a very good job for the good of the overall people. What should we do?

Michael_1960 2015-01-24 21:26:46 -0600 Report

I had my taxes done today and they told me it would cost me $395 for this year and next year it would be $695 but I'm cover under the V.A. but still if I wasn't I couldn't afford to pay that, I would come out better to quit my job and draw unemployment and get on medicaid

GeekonBoard 2015-01-24 18:32:17 -0600 Report

I should have gone with my gut & not entered this discussion as my 1st experience or interaction with Diabetic Connect. While I admit that The Affordable Care Act is flawed…I was laid off from the post office several years ago & haven't been able to obtain health insurance due to pre-existing conditions. Thanks to The Affordable Care Act I finally have insurance again & am able to address things like my diabetes, malfunctioning pituitary gland, numerous female problems, high blood pressure, & the hits go on & on. I am sympathetic to some of the things posted on this topic, but am grateful at the age of 38 to be able to see a doctor & can now work on continuing to pay off bills in collections from not having insurance & having to pay out of pocket until I couldn't any longer. Now I can see a doctor & even a dentist! I live in fear that this great blessing & weight off my shoulders will be taken away at any moment. P.s. I am moving on from this discussion & do not wish to start and Brou Ha Ha … like I said - I understand The Affordable Care Act is flawed, but I cannot think of much in this world that doesn't have flaws…including myself.

BreC 2015-01-24 14:40:48 -0600 Report

I am going to address this here because this is where the initial discussion began. I posted this to give a heads up to those who don't know about the possibly of having the insurance penalty taken out of their taxes. No political agenda or views meant. I make it a policy NOT to discuss politics with anyone other than my husband. This has gotten way off topic. "Insurance" , "Penalties" , and "Taxes",,,.

rock47 2015-01-24 12:32:07 -0600 Report

The figure they use is called the MAGI, or Modified Adjusted Gross Income. Again, every case is different, and no one can know the answers w/o calling the ACA help desk, the number listed on www.healthcare.gov They are VERY helpful. If you live in NC, call me.

Sybursu 2015-01-24 12:11:09 -0600 Report

I believe the figure that the ACA accepts is the net income and not the gross. It is important to figure out your taxes when you sign up for the ACA health insurance.

rock47 2015-01-24 11:36:27 -0600 Report

It's tricky, BreC, and the answer to your questions are not "general" FAQs. I also sell this kind of insurance, in North Carolina. The answers all depend on the individual and what they earn, or expect to report that they earn. Yes, I expect there will be a 3 month penalty for not enrolling, but, with a new job, it will be minimal or $0. Some people without even having job "fall through the cracks." They do not earn enough for ObamaCare, and too much to get Medicaid, or otherwise do not qualify for Medicaid. Look at www.healthcare.gov and get their phone number and call them for accurate answers and good help. Too many rumors otherwise. People will tell you what happened to "Buffy" but "Buffy's" case is different, for sure.

BreC 2015-01-24 11:44:32 -0600 Report

Our taxes are done and thank God we don't have to pay a penalty. I feel for those who are expecting a refund to help buy food, clothing, or just to catch op on some bills. It's a sad state when someone goes out and puts in 40-60hrs a week working and has nothing to show for it after the government takes what they think they are entitled to.

BreC 2015-01-24 10:32:46 -0600 Report

I posted this here because it affects many of us here. Especially those who don't have insurance and have to pay out of pocket for diabetic supplies. As I said, it's a never ending cycle.

BreC 2015-01-24 10:02:18 -0600 Report

I thank God that I have good insurance. In the beginning I hated Cigna because they weren't paying as much as BCBS did for the same meds and some nothing at all, After being on Cigna for a while they started paying properly and now most of my meds are $0.00 out of pocket. Some of my meds averaged throughout the month would be $1,000-$2,000 per month. I was in line behind a lady the other day and her meds were $1,200. My thought was "OMG". I would have to just leave them. Maybe some can get by with paying the $95 but for most households that would not be the case. One of my sons has 4 kids. That adds up pretty quickly even if the kids are penalized only half of the $95.

Sybursu 2015-01-24 12:15:32 -0600 Report

We found that the cost of many drugs at Costco provided a fantastic savings. There are some comparison sites on line too.

BreC 2015-01-24 09:13:57 -0600 Report

How Obamacare Will Affect Your Taxes
For many Americans, the "fun" part about filing their taxes is dealing with the way the tax laws change from year to year.
For 2014, the Affordable Care Act will provide more tax-filing fun than ever before.
Actually, most Americans will not have to make any dramatic changes to their tax forms because of the ACA.
If a taxpayer was covered for insurance the entirety of 2014, all they need do is mark on their return that they were covered by an employee-based policy, Medicaid, Medicare, or a personally owned policy.
If that covers your situation, you can relax.
However, if for any part of 2014 you were without health insurance, you need to get your hands on Form 8965, which will determine if you can claim an exemption from the requirement to have insurance (based on religious, ethnic or income level allowances) or to calculate the penalty for the months you did not have coverage.
One of the main elements of the ACA is that everybody who can afford to have insurance must have insurance.
The penalty for not having health insurance in 2014 is a maximum of $95 per adult and half that, $47.50, for children, or 1% of your taxable income above the taxable filing threshold of $10,150, whichever is greater. If you have income greater than $10,000, and you did not have health insurance in 2014, you will pay 1% of your taxable income.
The amount will increase for 2015, to a maximum of $325 per adult, $162.50 for children, or 2% of taxable income. In 2016, the penalty is $695 per adult and $347.50 per child, or 2.5% of a family's income, whichever is greater.
You avoid the penalty by having health insurance. You can also avoid the penalty by claiming an exemption, and many of those can be claimed directly on the tax return. One such exemption is if your income is below the filing threshold of $10,150 for an individual.
Another exemption from the penalty is if you had a short coverage gap of less than three consecutive months.
Some exemptions are granted through the healthcare marketplace, and could take up to two weeks to process the application. That includes an exemption if health care would cost you more than 8% of your income. In that case, you must get an exemption certificate from the healthcare exchange.
One very important exemption relates to people living in states that chose not to expand their health care programs. If you experienced a particular hardship, and would have been eligible for Medicaid under the new health care law but could not get Medicaid because of your state's health care law decisions, you are exempt from the tax penalty.
Other exemption include incarcerated citizens, Native Americans who are covered by the Indian Health Service, or people who object to health care for religious reasons.

Read more: http://millionairecorner.com/Content_Free/how...

BreC 2015-01-24 09:06:39 -0600 Report

Obamacare Penalty 2015: Health Insurance Fines to Increase Varying on Income But Exemptions May Save People Money
Individuals and families without health insurance coverage for 2015 should expect a penalty fine higher than in 2014.
All taxpayers are expected to report to the Internal Revenue Service (IRS) on whether they had health insurance or not during 2014 as required by the Affordable Care Act (ACA), also referred to as Obamacare.
As Latin Post reported, the penalty fee for not having health insurance will vary on a person's income. For 2014, the IRS had announced the penalty is 1 percent of taxable income or $95 person, pending which cost is higher based on the 2014 federal tax return. According to HealthCare.gov, the penalty for individuals is only for those earning more than $10,000 for income. The maximum penalty is the national average premium for the bronze plan.
For the 2015 tax season, the penalty will increase to 2 percent of the yearly household income or $325 per person for the year. The IRS will expect the higher cost from the consumer. For families, the penalty is $325 per person, and $162.50 per child under 18 years old, although the maximum penalty per family will be $975
By Michael Oleaga (m.oleaga@latinpost.com small)

RosalieM 2015-01-24 08:57:18 -0600 Report

I would hold off on filing your taxes, if you can, until
April 15. See if there is some new information. It will be harder to get your
money back from the government if any one including the government, made a mistake. What a mess!!

RosalieM 2015-01-24 08:54:04 -0600 Report

Brec, This is for you. Your son might have to pay the $94 Penality.
Everyone is so confused. When I do my sons taxes I will look at the tax
form. I suspect the tax preparers are confused too.

GabbyPA 2015-01-23 22:19:41 -0600 Report

Yep, that is me. I actually got on it, but since my payment was late, they dropped me so I didn't have insurance. It is my understanding that it will only come out of a refund, but I will be finding out for sure in the next month or so. It is crazy, and while I would love to have insurance, I am in that limbo place where I make too much for help, but not consistent enough to always have a payment when I need one. It is being stuck between a rock and a hard place for sure.

RosalieM 2015-01-24 09:04:47 -0600 Report

My son went through that too. I got the insurance for him. He was working for a temporary service and didn't get paid much. Now, with the government subsidized insurance, he had to pay $68 a month that he didn't have to pay before and the co pay and deductible was so high that he could never afford to use the insurance. He needs his hip replaced. Fortunately the company hired him, and he got insurance. He never did pay the $68.00 insurance priemium, so they dropped him and I think the insurance company had to repay the government. I suspect because he didn't pay one payment at all unlike you did, he didn't accept the insurance. I will find out for sure when I do his taxes.

haoleboy 2015-01-23 21:13:59 -0600 Report

I was one of those that benefited greatly under the affordable care act … thanks Mr. Obama, and I didn't even vote for you.

RosalieM 2015-01-24 09:11:42 -0600 Report

Wisconsin and about 26 other states didn't agree expand Medicaid. Don't rest too easy in Medicaid as states like Wisconsin are not going to pay the Medicaid bills for the states who expanded Medicaid. My son couldn't get Medicaid even though he qualified. Since 26 states didn't expand Medicaid the money will have to come out of your pocket eventually. There will be a fight brewing over this. Watch for it! Protect your self as best you can and don't trust the government. .

BreC 2015-01-23 21:25:30 -0600 Report

I am happy that some folks were able to get insurance but, I don't think the ones who have been out daily looking for work should be penalized.

haoleboy 2015-01-23 21:55:46 -0600 Report

no doubt it is a flawed system

Jibber Jabber
Jibber Jabber 2015-01-23 22:33:26 -0600 Report

The problem is the "flaws" can be financially devastating to people that are not low income enough to qualify for subsidies…but have expenses that are not being taken into account…big flipping deal if my hubby makes 60K a year…I have 3 kids in college that we help support…my husband has family in Syria that if he doesn't send money to every month would be sleeping in tents with toddlers because they are refugees…Obama can rotate on a pineapple as far as I am concerned..we are not making our grandchildren homeless to buy his FORCED insurance…I know one man in NYC that was barely making his mortgage payments as it was…now he has been dropped by his work insurance and has to pay over 500 dollars a month…(instead of 120) for insurance…it is sick and twisted…I am glad you were helped…but all he did was solve a few peoples problems by creating more problems for other people..

NewSong53 2015-01-23 20:53:42 -0600 Report

This really disturbs me. I just passed the one-year mark at my job in late October. I have a very modest income but had no insurance til then as I could not afford it. I was looking forward to receiving a small tax refund but it sounds like I will end up owing due to this insane law. Lord, help us all.

RosalieM 2015-01-24 06:47:08 -0600 Report

This is the first year of the penalty . The penalty is $94.00 not the amount you were quoted. You need to question that person who did your taxes or look it up yourself. Next year it will be several hundred dollars. I would question the competence of the person who did your taxes. I do my own business and personal taxes so I keep up on tax information. The other thing that fits in, if you (your insurance company)received s subsidy from the government while you had the insurance the government may be taking that back and that could account for the amount. A similar thing happened to my son. He got a subsidy, but did not pay a single payment. The insurance company dropped him so the insurance company had to return the government subsidy. He got a job with insurance so that saved his butt. If you paid one or more payment to the insurance company, that may have caused the problem.

BreC 2015-01-24 08:36:49 -0600 Report

RosalieM I am a bit confused. Are you commenting about my post or NewSong53's. If me, the lady who did our taxes showed us every step she made. I have found that a couple of friends and family had high quotes and we didn't use the same tax preparer The one who had to pay $240 lives in California, we live in Tennessee. My sister had to pay $370. From this I think it is based on 2014 wages and a sliding scale. My son is still waiting on a W2 so he hasn't filed his taxes yet. I shudder to think what he will have to pay.

RosalieM 2015-01-24 09:15:35 -0600 Report

Brec, I am not sure where the post landed. Haven't figured it out yet. Look for the discussion I started which explained it as best as I know how. See where you it in it. Sorry!

Jibber Jabber
Jibber Jabber 2015-01-23 20:59:52 -0600 Report

sad face…did you do your taxes yet???…Some people are exempt from the penalty tax based on income…If your income is low enough you may be exempt..

NewSong53 2015-01-24 07:11:48 -0600 Report

I haven't checked yet. Thanks. Maybe I'm worrying about nothing. I was so grateful to finally get insurance through my employer. It's not cheap but neither is medical care.

BreC 2015-01-23 19:43:48 -0600 Report

A friend did not find work until late in 2014 and he said the penalty for him was $240 so it must be based on gross wages in 2014. My husband has been talking about retiring in March 2015. If he does, he will lose his work insurance. Guess I need to start shopping. I am on disability and Medicaid so mine shouldn't be affected. I was looking forward to his retirement, now new worries. Great!!

Jibber Jabber
Jibber Jabber 2015-01-23 18:57:11 -0600 Report

Don't get me started on obama Care..(small o intentional)…it is a disgrace what they are doing to people…surely there was a way to help people with insurance without screwing over the working class..

RosalieM 2015-01-24 09:28:30 -0600 Report

We would be better off with government paid health care so everyone pays for the insurance, than this mess. However that carries it's own problems for us. If the government is paying our diabetic bills, other than Medicare, they will also dictate much more of our life. Type 2 diabetes is considered lifestyle related. This is one of the reasons I am so motivated to figure out this diabetes thing and do everything I can to stay healthy. I saw this coming many years ago. I watched the baby boomer bubble advance through the years. Now it is here. Many ageing people with health problems and on top of that crappy processed foods that made it all worse.
Sometimes I wish I were blind so I wouldn't see so much. On the bright side, I am 76 years old and in perfect health after having diabetes for 30 years.

sweetslover 2015-01-23 20:18:04 -0600 Report

I agree 100%.

RosalieM 2015-01-24 08:50:09 -0600 Report

Sorry I don't have the big picture down of how this site works. I started a discussion about this so I had more room to write. Look for it. The penalty this year is $94. If you must return the money the government put in for you, that will depend on how long you had the insurance and the amount of money the government put in for you before you were dropped. We are confusing terms here.
The Penalty is $94 if you did not get insurance at all in 2014. Returning
the government money is not a penalty. You are returning to the government the money they paid toward your insurance.

rhett t
rhett t 2015-01-23 18:27:19 -0600 Report

That is a big problem. So many can not afford to have insurance. That is sad

Jibber Jabber
Jibber Jabber 2015-01-23 21:03:36 -0600 Report

Didn't you get the memo…it is the AFFORDABLE care act…lmao…under this AFFORDABLE care act…my husband and I are suppose to shell out $648 dollars a month for a medium range plan…with insane deductables and copays…cheaper for me just to keep going to the sliding scale clinics I go to…idiots..