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Gold Star Tax Services

Healthcare Frequently Asked Questions

Healthcare insurance, where and how to obtain it and how it can impact your tax bill can be very confusing. We've assembled a list of frequently asked questions and useful links to help. If you need more help, just contact us at 517-437-4646 or healthcarequestions@goldstardirect.com.

1. Where do I go to sign up for Health Insurance if I want a subsidy?

You can purchase insurance through any Health Insurance provider that deals with the Federal Exchanges.  You may also go online and to get a quote at ehealthinsurance.com.

2. How much of a Healthcare Subsidy am I eligible for?

That depends on income and family size. As long as your income is below 400% of the poverty level then you will be eligible for a subsidy. To see how much you may be eligible for, visit healthcare.gov

3. What will my penalty be if I do not carry health insurance?

The penalty will be the greater of $695 per person (347.50 per child) or 2.5% of your modified AGI (Adjusted Gross Income). Modified AGI is your AGI plus any tax exempt interest and non taxable social security minus your filing threshold. This could be a bit complicated to figure by hand. Visit Healthcare.gov/fees/ to get an automatic calculation.

4. Who do I contact to enroll in Medicaid?

Visit your local DHS office or the Michigan Department of Health online click on the following link for more info about the Michigan Medcaid program at Michigan.gov.

5. How do I qualify for an exemption from having health insurance?

There are many ways that you may qualify for an exemption such as filing thresholds, unaffordable coverage, short coverage gaps, facing foreclosure, bankruptcy, death of a close family member, and many more. Learn more about health insurance exemptions at healthcare.gov.

6. What do I need to do if I feel I qualify for a hardship exemption?

Some exemptions are claimed when you file your tax return while other require you get permission from the Marketplace before you can claim it. Learn more about claiming a health insurance hardship exemption.

7. What will health insurance cost me?

That would depend on your personal circumstances. Get an estimate for the cost for health insurance at ehealthinsurance.com.

8. Under what circumstances should I contact the Marketplace and let them know of any changes?

You will need to report the following changes as soon as possible to avoid major issues come tax time:

  • Get married or divorced
  • Have a child, adopt a child, or place a child for adoption
  • Have a change in income
  • Get health coverage through a job or a program like Medicare or Medicaid
  • Change your place of residence
  • Have a change in disability status
  • Gain or lose a dependent
  • Become pregnant
  • Experience other changes that may affect your income and household size

Report changes in your healthcare marketplace circumstances

Answers to many more questions can be found at www.healthcare.gov.

9. Will my refund be delayed because I am claiming a Premium Tax Credit for my Health Insurance this year?

Your refund should not be delayed UNLESS the information that is reported on your tax return does not match 100% what the IRS will have on file for you regarding your health insurance coverage.  You may receive a 1095-A, 1095-B, and/or 1095-C this tax season which we will NEED to have in hand before we can file your return.

10. If my income ends up being higher than what I estimated to get coverage for health insurance, will I have to pay some of the subsidy back to the government on my tax return when I file?

Yes. However there are limits to the amount you may have to payback. The amount of the required payback will vary depending on your filing status and income level. For those of you who overestimated your income, you may receive a refundable tax credit for the subsidies that you could have received which would increase your refund or lessen the amount you owe. Learn more about healthcare income estimates.

11. When will I receive the 1095-A since I enrolled through the marketplace?

The 1095-A, B and C are all due out by January 31st.

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