2018 ushered in some of the biggest tax law changes in decades, and among those rewrites of federal law, the healthcare requirements on individuals, better known as Obamacare, were rewritten as well. Originally, once the laws were in place, the individual had to either have healthcare coverage through an employer or secure it personally through a state-run healthcare plan. Those who did not do so would realize a penalty on their income taxes at the end of the calendar year when it came time to file.
With the new changes now in place, some in Arlington, TX and elsewhere have immediately rushed to cancel their coverage to avoid the cost. That may have been premature. While President Trump did sign the new tax law act in December 2017, the provisions affecting healthcare coverage mandate don’t take effect right away. In fact, the IRS is in full swing to enforce the mandate on tax filings through the tax year 2018. That means those who are not covered through employment or cannot show partial coverage in 2018 per the allowed exemptions will be hit with the mandate penalty on their next tax filing April 2019 or thereabouts. The confusion is definitely going to surprise many how just read in the news about the mandate change and don’t read the details of exactly when it occurs, as already seen by the call the staff at Strack Insurance Services have been getting.
Strack Insurance Services can help. If you have questions about where you are with your current coverage in Arlington, TX, you made the mistake of canceling prematurely, or you just want to know more about how the new rules work, give them a call today. The worst thing you can do is try to guess in the dark in 2018 and be hit with a penalty due to a bad decision.