If you’re covered under your parent’s health insurance plan, you won’t face tax penalties when filing your 2014 Taxes
If you’re in your early twenties and recently entered the “real world”, you know first hand how overwhelming it can be.
Not only do you feel the pressure to succeed in your first job, but you’ve also been slammed with bills you’ve never seen before. From paying student loans to coughing up rent and everything in between, you’ve got a lot on your plate.
Thanks to the Affordable Care Act aka Obamacare, paying for health insurance isn’t yet on your list of concerns. Keep in mind however, you’ll need to report your insurance coverage on your 2014 Tax Return. RapidTax is here to help!
Who is Eligible for Coverage under Parent’s Plan?
You may be unsure if you qualify to be covered under your parent’s health insurance plan. Here’s what you should know:
- you can stay on your parent’s health insurance policy until you turn 26 years old
- if you don’t have insurance, you’ll have to pay a fee for being uninsured when filing your taxes
In fact, according to Healthcare.gov, you can remain on your parent’s health insurance plan until 26 years old, even if you’re:
- not living with your parents
- attending school
- able to enroll in your employer’s plan
- not financially dependent on your parents
How To Report Insurance Coverage Received Through Your Parent’s Plan
When filing your 2014 taxes, you’ll be required to report how you were insured in 2014. If you’re filing with RapidTax, it’s pretty straightforward. When entering your personal information, you’ll simply select the option which indicates that you received coverage through a parent’s plan.
If you fail to indicate that you were covered, then you’ll end up with a larger tax bill (or less of a tax refund) than you expected!
File Your 2014 Taxes Today!
We understand that you’ve got a lot on your plate. That’s why we’ve made it easy to get your 2014 Tax Return e-filed and out of the way!
In fact, you may even qualify to file your taxes for free with RapidTax!
So what are you waiting for? Create an account and get your 2014 Taxes out of the way today!
Photo via Wellness GM on FlickrWednesday, February 4th, 2015 at 4:58 pm and is filed under Tax and Life Changes | Blog.