Smart Benefits: New IRS Publication Tells Individuals if They’ll Pay an ACA Penalty at Tax Time
Monday, August 18, 2014
Who Qualifies
The ACA requires every individual to have minimum essential coverage – unless they qualify for an exemption. And an estimated 90 percent of uninsured will be able to claim an exemption. But how do individuals know?
The new publication lists exempt individuals, which include:
- Members of certain religious sects
- Certain noncitizens
- Coverage is considered unaffordable
- Household income is below the income tax return filing threshold
- Members of federally-recognized Indian tribes
- People who are incarcerated
- Those who have income below the federal poverty level
How to Claim an Exemption
Certain exemptions can only be claimed from the Marketplace in the area where individuals live, others only from the IRS, and some from either the Marketplace or the IRS. All exemptions are reported on the tax return; however, individuals are automatically exempt if they don’t have to file a return because their income is below the filing threshold
More Information
For more information on the individuals shared responsibility payment, the IRS has also released Publication 5156 and an exemption chart.
Related Slideshow: New England’s Healthiest States
The United Health Foundation recently released its 2013 annual reoprt: America's Health Rankings, which provides a comparative state by state analysis of several health measures to provide a comprehensive perspective of our nation's health issues. See how the New England states rank in the slides below.
Definitions
All Outcomes Rank: Outcomes represent what has already occurred, either through death, disease or missed days due to illness. In America's Health Rankings, outcomes include prevalence of diabetes, number of poor mental or physical health days in last 30 days, health disparity, infant mortality rate, cardiovascular death rate, cancer death rate and premature death. Outcomes account for 25% of the final ranking.
Determinants Rank: Determinants represent those actions that can affect the future health of the population. For clarity, determinants are divided into four groups: Behaviors, Community and Environment, Public and Health Policies, and Clinical Care. These four groups of measures influence the health outcomes of the population in a state, and improving these inputs will improve outcomes over time. Most measures are actually a combination of activities in all four groups.
Diabetes Rank: Based on percent of adults who responded yes to the question "Have you ever been told by a doctor that you have diabetes?" Does not include pre-diabetes or diabetes during pregnancy.
Smoking Rank: Based on percentage of adults who are current smokers (self-report smoking at least 100 cigarettes in their lifetime and currently smoke).
Obesity Rank: Based on percentage of adults who are obese, with a body mass index (BMI) of 30.0 or higher.
Source: http://www.americashealthrankings.org/
Related Articles
- Smart Benefits: New Law Eliminates Limits on Deductibles
- Smart Benefits: Obamacare Extends Sign-Up for Exchanges… Again
- Smart Benefits: Will Sebelius’ Resignation Improve ACA Rollout?
- Smart Benefits: Vision Coverage for Google Glass is Clear
- Smart Benefits: HSA Limits Will Increase in 2015
- Smart Benefits: Employers Adapting to Private Exchanges
- Smart Benefits: 5 Common Compliance Mistakes Employers Make
- Smart Benefits: Large Employers Need to Report in 2015 Under ACA
- Smart Benefits: Wellness Plans Weigh In On Obesity
- Smart Benefits: Is United’s Wait Wise?
- Smart Benefits: The All-Payer Claims Database Will Capture it All
- Smart Benefits: What Matters to Employees?
- Smart Benefits: CT Exchange Technology a Model for Other States
- Smart Benefits: Popularity of HSAs Continues to Rise
- Smart Benefits: Communicating Healthcare Reform: Go by the Book
- Smart Benefits: Plan Choice Key for Employers
- Smart Benefits: FMLA to Revise Definition of Spouse
- Smart Benefits: Despite Reform Mandate, Birth Control Coverage Ruled Optional
- Smart Benefits: Patient-Centered Outcomes Research Institute Fee Due July 31
- Smart Benefits: 2015 Health Insurance Rates Approved
- Smart Benefits: IRS Releases Draft Forms for ACA Reporting
- Smart Benefits: IRS Issues Final Regulation on Small Business Tax Credit
- Smart Benefits: Pay or Play Delay Could Bode Well for Employers
- Smart Benefits: More Employers Offering More Health Plan Choices
Follow us on Pinterest Google + Facebook Twitter See It Read It