According to Massachusetts Health Care Reform Law those who are 18 and over are required to obtain health insurance that meets minimum coverage standards. In MA you will be penalized if the state thinks you are eligible to have health insurance and you did not purchase it. The state will charge you each month that you do not have health insurance during the tax year but people who are unable to afford health insurance are not penalized. Here are a few tips to avoid those penalties!
Health Insurance Information- Residents and some part-year residents have to file a Schedule HC form with their tax return. This form is important to file since it is used to report information about health insurance coverage during the year. You will receive a Form MA 1099-HC if you have private health insurance and your health insurance carrier should be able to help you fill out a Schedule HC.
Affordable Insurance- Check out your state’s health insurance website if you don’t have insurance. The Commonwealth Health Connector is an independent state agency who aids residents living in Massachusetts find affordable insurance and avoid tax penalties. This agency meets the minimum coverage standard with no cost plans and has the state’s approval for their quality.
Penalties- The cost of your lack of insurance will be charged though your MA income tax return. Penalties will not exceed 50% of the minimum monthly insurance premium you would have qualified for through Massachusetts Health Connector. Every year the state forms affordability standards that decide which residents or families can afford health care and if you are deemed unable to afford health insurance, you will not receive any penalties.
Religious Belief and Low Income- Individuals that has sincere religious beliefs to not have health insurance coverage can be exempt. But if you decide to be exempt due to a religious basis and have received medical care during the tax year you can get a penalty if you are determined that you can actually afford health insurance.
If you are in need of assistance with your taxes, call Tax Prep Boston at 877-TAX (829) -7334 or use our contact form today to get the professional financial help you need!