What you need to know about the Affordable Care Act

As many of you know, the health insurance issue was significant for the tax years 2016 – 2018, especially with the government charging penalties for not having health care coverage.

For the new tax year, we will see a massive component of the Affordable Care Act (ACA) that goes away!  

For the tax year beginning in 2019, individuals won’t have to pay a federal penalty for not being covered by insurance or by an exemption, and the individual shared responsibility payment has been permanently reduced to zero. Remember that for the previous tax years of 2016-2018, the penalty was more significant than $695 per individual or 2.5% of household income. Please remember that a handful of states invoke a penalty for not having insurance – which may not change.

Most Taxpayers will continue to receive Forms 1095-A, B, and C containing information about insurance coverage and should keep these forms with their records. Taxpayers who purchase insurance coverage through the marketplace will continue to receive Form 1095-A. 

 If anyone happens to have any questions regarding their tax-related penalties, please do not hesitate to contact our NYC office, which handles your tax preparation and business needs.  We have served the Washington Heights / Inwood area for over 20 years.