Nearly 50% of Americans are not Aware of the Health Insurance Status Filing Requirement in Their 2014 Tax Returns
A recent survey has shown that 48% of American taxpayers do not know that they are required to report their health insurance status when filing their returns for the previous year. As the tax filing season commences in the next couple of weeks, the Intuit TurboTax Health Survey, which involved 2,000 U.S. adults, showed that most Americans do not see the correlation between their taxes and health care.
2015 will be the first year under ObamaCare that taxpayers will be required to prove that they have a valid health insurance or pay a tax penalty. A commendable 62% of American taxpayers know that those who do not have a valid health insurance policy will be penalised, a whooping 87% do not know that the deadline for avoiding the tax penalty for 2014 taxes has already passed. Those who purchased health insurance during the current enrollment period, which ends in Feb 15, 2015, will file their status in April 2016.
On the other hand, 56% of American taxpayers were not aware that some taxpayers who do not have health insurance, but meet a certain criteria, can be exempted from Obamacare Taxes.
45% of American taxpayers are not familiar with premium tax credits that are meant to make it easier for low to medium income households to purchase health insurance.
According to the head of Obamacare for TurboTax, these numbers show that most Americans don’t know the relationship between taxes and health care. TurboTax 2014 is committed to educating taxpayers about their tax obligations and rights by providing them with free resources and easy to use tools.
TurboTax, being the industry leader in online tax preparation, is helping Americans to understand Obamacare by developing a free online resource at TurboTaxHealth.com. With this resource, consumers can find out if they qualify for a low-cost health insurance cover, the tax penalty they would pay if they failed to purchase a health cover and the tax credits they can claim if they have a valid health insurance plan.
Other key findings from the survey include:
Ninety percent of Americans have some sort of health insurance. In the Northeast, 94% of consumers are insured, compared to 85% in the South, 90% in the West and 93% in the Midwest.
Nearly 74% of taxpayers who purchased a health cover through the Health Insurance Marketplace in the previous year plan to renew it before it expires in the coming year.
Those who purchased health insurance during the first enrollment period are more likely to qualify for tax credits than other groups.