Obamacare Tax Credit 2015: Health and Human Services Department Partners With Top Tax Filing Organization
With the 2015 tax season being the first year for people to report their health insurance information on their tax returns, the U.S. Department of Health and Human Services (HHS) this week announced efforts to ease the process.
HHS Secretary Sylvia Burwell said the department will collaborate with a "wide range" of non-profit organizations and some of the U.S.' largest tax preparers for the purpose of Americans to "understand how health care and their taxes intersect."
"Every year, non-profit organizations and tax preparers provide millions of Americans the assistance they need to file their returns and we are pleased to collaborate with them," said Burwell in a statement. "When it comes to health care and taxes, the only change the vast majority of people will notice is the requirement to check a box to indicate that they had health insurance all year through their job, Medicare, Medicaid, Tricare or the Veterans Affairs."
According to the HHS, the tax-preparing groups provide advice, assistance and resources for tax filers across the country. Online tools and software have provided to be popular during 2014 as 91 percent used software programs to file their taxes.
"A smaller number of people, including those who purchased coverage through the Health Insurance Marketplaces or those who were uninsured for some or all of the year -- will need to take additional steps when filing their taxes," Burwell added. "We are working to provide taxpayers with the tools and information they need to file their returns and answer their questions."
The HHS noted approximately three-quarters of Americans will be tasked to checking a box to signify they had health insurance coverage throughout 2014. One quarter of Americans will be tasked with additional steps. An estimated 2 to 4 percent of Americans are expected to pay a fee for not receiving health coverage and are not eligible for an exemption.
Among the organizations that have partnered with the HHS are the AARP Foundation Tax-Aide, Center on Budget Policy Priorities, Community Action Partnership, H&R Block, Jackson Hewitt Liberty Tax Service, National Women's Law Center, TaxACT and TurboTax.
According to White House, 4.5 million millennials, especially people between the ages of 19 and 25 years old, have gained health insurance. The Council of Economic Advisers' (CEA) Chairman Jason Furman and CEA senior economist Matt Fiedler said the 4.5 million additional people with health insurance dates back to the first time the ACA's provisions went into effect in 2010. The CEA's data stated nearly one-third of the 19-to-25-year-old age group had lacked health coverage in 2009, which was twice the rate compared to overall Americans.
Latinos, however, remain as the highest uninsured demographic with 32.4 percent, it is down 6.3 percentage points since the end of 2013's 38.7 percent, based on Gallup data.
A penalty fee for not having health insurance will occur but vary on a person's income.
For 2014, the IRS had announced the penalty is 1 percent of a person's taxable income or $95, 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.
As Latin Post reported, the HHS revealed 9.5 million Americans, overall and across the country, have selected or were automatically enrolled into health coverage during the current second open enrollment period, which started on Nov. 15, 2014. The second open enrollment period concludes on Feb. 15.
"We're pleased that, nationwide, 9.5 million people are signed up for Marketplace coverage. The vast majority are able to lower their costs even further by getting tax credits, making a difference in the lives of so many families," Burwell said, noting 87 percent of the plan selections have financial assistance.
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