Almost Half of Americans Don’t Realize They Must Report Health Insurance Status on 2014 Tax Returns

[kcjenkins]

Almost Half of Americans Don’t Realize They Must Report Health Insurance Status on 2014 Tax Returns

 

December 08, 2014- -A new survey reveals that almost half (48 percent) of Americans are unaware they are required to report their health insurance status on their upcoming 2014 tax returns.

 

A new survey reveals that almost half (48 percent) of Americans are unaware they are required to report their health insurance status on their upcoming 2014 tax returns. With the start of the tax-filing season just weeks away, the Intuit (Nasdaq:INTU) TurboTax® Health Survey, conducted online by Harris Poll among over 2,000 U.S. adults age 18+, shows Americans are still largely unaware of the connection between their health care and taxes. Under the Affordable Care Act, 2015 will be the first year that Americans must prove they have qualifying insurance when filing 2014 taxes, or face a tax penalty.

 

While most uninsured Americans (62 percent) are aware that those without any health insurance will be required to pay a penalty, 87 percent do not realize that the deadline to avoid a tax penalty for 2014 has passed. Health insurance purchased during the current open enrollment period, which extends through Feb. 15, 2015, will apply to returns filed in April 2016. A majority of those without health insurance (56 percent) were also unaware that uninsured individuals who meet certain criteria may qualify for an exemption from the Affordable Care Act tax penalty. Nearly half (45 percent) of Americans are not aware there are discounts called premium tax credits designed to make health insurance less expensive for low-to-moderate income families.

 

“These numbers indicate that even with open enrollment in full swing many Americans still do not know the correlation between their health care and taxes,” said Sacha Adam, the Affordable Care Act product leader for TurboTax. “We are committed to bridging this gap by providing taxpayers with free, easy-to-use tools and resources that help them realize how their health care decisions affect their taxes and household finances.”

 

To help Americans understand how the Affordable Care Act applies to their individual situation, TurboTax, the nation’s leading online tax preparation service, developed a free online resource at TurboTaxHealth.com. With TurboTax Health, anyone can determine if they are eligible for a low-cost health insurance plan and what the tax penalty would be if they haven’t purchased insurance.

 

Additionally, the website offers TurboTax Exemption Check, a free online service that helps people without insurance determine, in just a few minutes, if they qualify for an exemption from the ACA penalty and then apply for that exemption.

 

Other key findings for the Intuit TurboTax® Health Survey: Nine out of 10 Americans have health insurance. Those who live in Southern states are less likely than all other regions to have health insurance (85% insured in the South vs. 94% insured in the Northeast, 93% insured in the Midwest and 90% insured in the West).

 

Nearly three quarters (74 percent) of Americans who purchased a health care plan through the Health Insurance Marketplace last year plan to renew it for next year. Those who purchased health insurance through the Marketplace during first enrollment are significantly more likely to be aware of premium tax credits than other insured groups. Americans who are covered by their parents’ health insurance plan are less likely to be aware of tax penalties (55%) than those who have health insurance through an employer (70%).

 

The full report is available upon request. Methodology The surveys were conducted online within the United States by Harris Poll on behalf of TurboTax from November 6-10 among 2,022 adults age 18 and older and November 13-17, 2014, among 2,014 adults ages 18 and older. The online surveys are not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated.

[SaraEA]

Of course people aren't aware of the connection between medical insurance and taxes because there logically shouldn't be a connection.  The IRS was charged with administering a chunk of the ACA not because it makes sense (their employees are accountants and numbers people, not medical professionals) but because the agency has a remarkable track record in translating law into practice and collecting money.  Don't know how long that record will last now that they've endured budget cuts in real dollars and lost so many employees because they don't have the funds to pay them.  I wonder how many people are aware that the IRS is responsible for determining that hospitals are conducting local needs assessments.  What, you say?  Yup, not hospital administrators or AMA boards, but the IRS.  They will probably have to let go dozens of auditors for every medical professional they have to hire to enforce this part of the ACA.

 

There are dozens of federal agencies with the word "health" in their names.  Why all this was dumped on the IRS is that the agency has met every challenge congress throws at it (last minute tax law changes anyone?) 

[RitaB]

Of course people aren't aware of the connection between medical insurance and taxes because there logically shouldn't be a connection. 

 

Best observation ever made in the history of the world.

[Eric]

Only half? That's amazing.

 

1 in 4 Americans don't understand that the Earth orbits the Sun.

 

The average American reads at something like the 7th grade level.

 

I don't think there's a statistic about what American's don't know that could possibly surprise me.  Especially something like this.  Our healthcare and tax systems are harder to grasp than differential calculus.

[RitaB]

Only half? That's amazing.

 

 

 

I thought the same thing. 

[JohnH]

Only half? That's amazing.

 

1 in 4 Americans don't understand that the Earth orbits the Sun.

 

The average American reads at something like the 7th grade level.

 

I don't think there's a statistic about what American's don't know that could possibly surprise me.  Especially something like this.  Our healthcare and tax systems are harder to grasp than differential calculus.

Actually, it's a little more complicated than the Earth simply orbiting the Sun.

The heliocentric 2-dimensional model just begins to tell the story.

Not disputing your facts Eric, but elaborating on them.

 

When we think 3-dimensonally, it is more awesome.

I love this You Tube explanation.

 

[Eric]

Our path through space is corkscrew-like, but relative to the sun our path is still a simple orbit.

And not only is our solar system circling the the Milky Way, the whole galaxy is flying through space.

I've never seen a visual representation of our path with the solar system's movement factored in--neat!

[Jack from Ohio]

Our path through space is cork screw like, but relative to the sun our path is still a simple orbit.

And not only is our solar system circling the center of the Milky Way, the whole galaxy is flying through space.

I've never seen a visual representation of our path with the solar system's movement factored in--neat!

Most Americans today would not have a clue about what you just said.  Sad, but true.  Words like "space," "solar system," "Milky Way," (except the candy bar) "galaxy," and the idea that the earth is moving at all are unknown.

[FreedomTaxed]

The vortex model is still not totally accurate. The planets only go around the Sun due to physical viewpoint; the reality is that the planets, asteroids, comets, dust, gases, and the Sun itself, all vortex around a "barycenter". Often this barycenter is within the Sun, since the Sun has 98% of our system's mass. But the Sun's path through space wiggles since it also goes around this barycenter point (which is itself wiggling). All mass effects a gravitational pull on all other mass. The planets tug on our star, just like it also tugs on them. Heck, the planets raise TIDES on the surface of the sun.

 

It's an interesting universe. Mass warps space, and the warp of space alters how mass moves. It's beautiful.