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Lying About Having Health Insurance on Taxes

You are no longer subject to a penalty for not having insurance, a provision of the Affordable Care Act that was struck down by a judge. This shows that it is not illegal not to have health insurance coverage. Thus, there is no need to lie about not having health insurance on taxes in 2020. Nevertheless, health insurance can help you access health care services and avoid major medical bills.

If paying for insurance is a struggle for you, you may be able to get assistance from the government. This money is known as a subsidy. To acquire it:

1. You must enroll in a private insurance plan via your state’s Marketplace.
2. The amount you make every year must meet specific rules. The good news is that some financial support may be accessible even if you are in a middle-income range.

For example, you will likely be able to get money if you make up to about $50,000 a year for one person or about $103,000 for a family of four. These income amounts depend on the federal poverty guidelines and will change every year.

How much financial assistance you require depends on how much money you make a year. The less you make, the more assistance you get.

There are two subsidies offered. They immediately reduce your costs. You do not have to pay first and get the money later.

1. Tax credit. A tax credit can help pay for your monthly insurance payments, known as the premium. The credit can immediately lower your prices. You do not have to pay first and get the money later.
2. Cost-sharing subsidy. If you are eligible, you will pay less when you get health care or buy medicine since your deductibles, copays, and coinsurance will be lower.

Your state’s Marketplace will tell you precisely how much assistance you might receive.

In addition, you may be eligible for Medicaid – a low-cost program for individuals with low incomes. You can apply and enroll in Medicaid via your state’s Marketplace at any time during the year.

In order to buy a private insurance plan, you must do so during the open enrollment period (typically in the fall). It would be best if you enrolled in a plan during that timeframe, or you will have to wait until the next open enrollment period unless you have special situations. You might be eligible for a special enrollment period if you had a qualifying event like losing your job or other insurance coverage. If you are qualified for Medicaid, you can enroll at any time during the year.

Resources and References:

• Health Insurance Marketplace
• Tax Credits and Subsidies