|Health insurance requirement is major change for ’14 income taxes|
|Written by Brenda Johnson Brandt|
While the 2013 income tax return information is just starting to be processed, American heads are turned to the 2014 requirement for health insurance.
Starting Jan. 1, 2014, unless exempt, all individuals are required to have reasonable quality health insurance for themselves and their dependents or pay a penalty on their 2014 tax return.
According to the Health Care Act, a person is exempt if he already has qualified insurance through employer-provided coverage or programs such as Medicare, Medicaid, Tricare, Chip or Veterans.
New insurance exchanges opened Oct. 1 to allow all individual Americans to purchase their own health insurance. All health insurance is now to be guaranteed issue and pre-existing conditions must be covered without a premium increase.
The requirement for employers with over 50 employees to provide insurance has been delayed one year to 2015.
Changes are still being made. But as it currently stands, the penalty for those who do not have health insurance coverage and are not exempt is the greater of two options: a flat dollar amount or percentage of income.
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