What Income Level Is Exempt From Obamacare
What income level is exempt from Obamacare? This is a very common question this tax season especially with recent charges in the Affordable Care Act. For example, beginning from the 2020 tax year, people without health insurance that qualifies as minimum essential coverage will no longer have to apply for an exemption, or pay a penalty for not having a cover. So, if you’re uninsured right now, you need not worry about paying a penalty next year. However, as far as 2019 tax year is concerned, you may need to know what your rights are with respect to exemptions, when filing your income taxes for 2018.
With that said, if you’re currently uninsured, it’s advisable that you consider available health insurance coverage options, to help pay for your healthcare needs.
What Income Level Is Exempt From Obamacare?
What income level is exempt from Obamacare? You can claim an exception from Obamacare if your annual income falls below the amount required to file a federal tax return (tax filing threshold). Tax filing thresholds are $10,400 for single individuals below 65 years and $20,800 for those married and filing jointly. The only way to know this is to complete your federal income tax return.
You may also claim an exception if you cannot afford the health coverage provided by your employer. Employer-provided health insurance is considered unaffordable if the lowest cost insurance offered is more than 8.16% of your income.
What is a hardship exemption?
What is a hardship exemption under Obamacare? There are several situations for which you can claim hardship exemption. These include:
• Becoming homeless
• Filing for bankruptcy
• Eviction or facing eviction or foreclosure
• Receiving a shut-off notice from a utility company
• Experiencing domestic violence
• The death of a family member
• Substantial damage to your property caused by fire, flood, or other natural or human-caused disaster.
• Incurring medical expenses that resulted in substantial debt and so on.
Hardship Exemption Form
Filling a hardship exemption form will no longer be necessary, beginning from the 2018 tax year. You don’t have to apply to get hardship exemption before making a claim; you can however go ahead and fill one, if you care to; or if you’re applying for hardship exemption for 2016 or 2017.
To do this exemption, you will need to check the box on Part II, line 7 on Form 8965 and include this form with your tax return.
Obamacare For Unemployed With No Income
Obamacare for unemployed with no income is different from hardship exemption because there is no provision for hardship exemption based only on employment status. There are however, other health coverage exemptions targeted towards the unemployed and people with very low income.
For more information please call ObamacareQuotes today at (800) 811-2640