The Affordable Care Act will not only change the way you handle your health insurance policy, it will have an impact on how you do your taxes. If you are concerned about the changes that are coming, you may want to look into making use of a service specializing in Tax Preparation in NYC. This is true if you are an individual or a business owner. What is this act, what does it mean for you and how will it affect Tax Preparation in NYC?
The Affordable Care Act made changes to health insurance laws across the country. Insurers are now required to cover all Americans, including those with pre-existing conditions and current health conditions. First day coverage on all services is now required and insurers must offer the same rates for both females and males. Anyone who does not have health insurance will be required to pay a penalty or tax, equal to one percent of the person’s income in 2014, with the penalties increasing every year.
To help offset the cost of medical insurance, the federal government will be providing tax credits to those who do not have access to affordable insurance. The government has established income limits to determine who is eligible for these credits and how much they will receive. If you qualify for one of these tax credits, the money will be paid directly to the insurance company. When the time comes to prepare your taxes, you must show proof of this insurance. To help those citizens who don’t have access to health insurance through their employer, a health care exchange has been established so everyone can get health coverage at reasonable rates.
Although the program makes health insurance affordable for many, the application process is complex as different family members may qualify for different programs. If you are concerned about how this will affect you and your taxes, an account can be of great assistance in making sure you don’t make any mistakes and end up having problems with the IRS. In addition, consumers need to understand what comes with each plan tier as the subsidies only apply to silver-level plans and higher. Speak to an accountant today if you wish to obtain health insurance through the Affordable Care Act to ensure you get a plan that meets your needs and one that you can afford.