ACA Facts - EXEMPTIONS If you were uninsured for more than 3 months in 2014 you may be subject to a penalty on your federal and state returns. One way to escape the federal penalty is to claim that obtaining health insurance was a hardship. As a percentage of income, it is considered a hardship when the cost exceeds 8% of your household income. This can be claimed on your tax return when filing. Other hardships include receiving a shutoff notice from your utility company, natural disasters, eviction and being a victim of domestic violence (See the link for the list of hardships). IMPORTANT TO NOTE: to claim one of these hardship exceptions you MUST obtain an exemption number from the Health Insurance Marketplace BEFORE YOU FILE YOUR RETURN! It will take a minimum of 2 weeks to obtain the exemption number if it is approved per the government (Translation: It could take them up to 8 weeks or even longer). If you have your taxes prepared without the exemption number you will have two choices: Pay the penalty out of your refund (or have it added to your balance due) OR wait until you receive your exemption number and then file your return. If you do not want to see your return delayed, now is the time to apply for your exemption. Follow the link below to the section labeled Applying for a Hardship Exemption which will provide you with a PDF to fill out and mail to the Health Insurance Marketplace. If your exemption request is approved, bring the letter to me when you have your taxes done. Please feel free to share this information with friends and family, particularly those out of state who may be dealing with the health insurance requirement for the first time.
Posted on: Tue, 28 Oct 2014 18:45:04 +0000
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