Are you considering filing taxes with Turbotax this year but worried about the health insurance penalty? If so, you’re not alone. With the recent changes to the tax laws, many people are unsure of what to do if they have additional dependents such as an infant. In this article, we will explore the potential penalties for filing taxes with Turbotax when you have an infant as a dependent and also provide some tips on how to avoid these penalties if possible. Read on to learn more and get started with your taxes today!
What is the penalty for not having health insurance?
If you’re an adult and don’t have health insurance, the penalty is 2.5% of your yearly income or $695 per person ($347.50 per child), whichever is more. The fee for not having coverage in 2016 is 2.5% of your yearly income or $695 per person ($347.50 per child under 18), whichever is greater. The maximum penalty per family using this method is $2,085.
How do I avoid the penalty?
If you’re enrolled in a health insurance plan through the Marketplace, you may have to pay a fee if you don’t have coverage for yourself and any eligible dependent children. This fee is sometimes called the “family glitch” penalty.
To avoid the penalty, make sure that you and your children are enrolled in a health insurance plan that covers at least the minimum essential health benefits for everyone in your family. If you’re not sure whether your plan meets this criteria, contact your insurer or Marketplace directly. You can also visit Healthcare.gov to find out more about the requirements for health plans in the Marketplace.
What if I can’t afford health insurance?
The Affordable Care Act, also known as Obamacare, includes a health insurance mandate that requires most Americans to have some form of health insurance or pay a tax penalty. The penalty for not having health insurance is calculated based on your income and family size. For example, the 2018 penalty for an individual with an income of $50,000 would be $695.
If you can’t afford health insurance, there are a few options available to you. You may be eligible for an exemption from the penalty if you meet certain criteria, such as having a low income or being unemployed. You can also enroll in a short-term health insurance plan which will provide you with basic coverage for a set period of time. Another option is to visit a community health center which offers sliding scale fees based on your income.
Are there any exceptions to the penalty?
There are a few exceptions to the penalty for not having health insurance. If you have a hardship that prevents you from getting coverage, you may be exempt. Hardships include things like being homeless, filing for bankruptcy, or having a close family member die. Other exemptions include if your income is below the tax filing threshold, if you’re a member of a Native American tribe, or if you’re in jail. You can also get an exemption if you had coverage for part of the year but not all of it, or if your coverage was too expensive.
How do I file my taxes if I have the penalty?
If you’re subject to the penalty for not having health insurance, you’ll need to file your taxes a bit differently. When you file your taxes, you’ll need to indicate that you don’t have health insurance and owe the penalty. You can do this by filing Form 8965 with your tax return.
When it comes time to pay your taxes, you’ll need to include the amount of the penalty along with your other tax payments. The good news is that you can make quarterly estimated payments if you think the penalty will be too much to pay all at once.
If you have any questions about how to file your taxes when you owe the health insurance penalty, be sure to speak with a tax professional. They can help make sure that you’re taking care of everything correctly and help answer any questions that you may have.
Conclusion
TurboTax is a great tool for filing your taxes, but you should be aware of any potential penalties that could arise if you make an error when reporting health insurance coverage. When it comes to infants, it’s important to know the rules and regulations around infant health care coverage in order to avoid incurring any unexpected tax liabilities. Be sure to do your research and double-check the information provided on TurboTax before submitting your return!
