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IRS Health Insurance Disclosure

IRS Will Suspend 2017 Tax Returns That Lack Health Insurance Disclosures.

Article By : Patrick Mansfield | U.S. Gov Connect
IRS Health Insurance Disclosure

The Affordable Care Act, better known as Obamacare, has not yet been allowed to die and will be subject to stricter rules over the course of the 2017 tax filing season. The Internal Revenue Service has been reported to have issued new guidance to the latest team of tax filing professionals about to begin their work in 2018 over the status of taxes filed which do not declare the health insurance status of each person filing their taxes on a return.

The latest advice from the IRS states any taxes filed without a complete disclosure of the health insurance status of an individual will result in the taxes being blocked or suspended without additional information being supplied. In previous years, the IRS has taken a more relaxed attitude to the disclosure of Obamacare information with many U.S. citizens and residents simply refusing to supply any information about whether they had health insurance over the course of a tax year. 

Taxes filed for 2017 will be required to have the box asking whether those filing taxes had health insurance over the course of the last year to be checked with a positive or negative answer. The IRS has explained the need for every individual reporting no health insurance or only being insured for part of the year to provide a reason why they have not been covered for healthcare.

There are some reasons allowing an exemption for the lack of healthcare, including:
  • A lack of local affordable healthcare options
  • Homelessness
  • Domestic violence
  • Bankruptcy
Many individuals who have reported they do not have health insurance will be forced to pay the mandate penalty initially attached to the Affordable Care Act when passed into law under the leadership of President Obama. The rate of the penalty is reported by the IRS to whichever is higher of 2.5 percent of adjusted gross household income or $695 per adult in a household; children are also subject to the penalty with each child uninsured fined up to $347.50 for each uninsured child.

The issue of the Obamacare penalties was expected to have been less of a problem for taxpayers after the arrival of President Trump in The White House and his initial executive order to scale back regulation of Obamacare rules. Many taxation and political experts had expected to hear of a reduction in the number of regulations enforced by the Obamacare penalty. One of the main reasons cited for the continued enforcement of the Obamacare penalty law has been the fact many experts believe the prospect of a financial penalty has been instrumental in encouraging younger people in purchasing health insurance coverage.
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