If you’re planning to buy health coverage for 2020 through a marketplace, the enrollment period starts today and runs through December 15.
Most people who buy a marketplace health insurance qualify for tax credits that can reduce their monthly premiums.
These tax credits are available for people with household incomes ranging from 100% to 400% of the poverty guidelines.
Individuals who don’t qualify for this tax credit are those who are eligible for Medicare or other federal insurance, and those who are able to get affordable health coverage through their employers.
Make sure you correctly report your health insurance premium credits, though. The IRS is on the lookout for people who get subsidies for buying insurance on an exchange and either wrongly report the credit or don’t file at all. The IRS computers will flag any returns that show a modified adjusted gross income above the limit to take the tax break.
If you didn’t have health coverage in 2019, the repeal of the 2017 tax reform law means that you don’t have to worry about paying the individual health insurance mandate penalty.
If you want to purchase marketplace health insurance, go to www.healthcare.gov to review your insurance choices and get started.
If you have questions about health insurance tax credits, give Lawrence & Lawrence a call at 251-476-7685.