In just a few months many moms are going to have to start thinking about taxes. If you’re a wahm like me, taxes can be very interesting. I’m extremely glad I have my husband to guide me through the financial jargon. He also keeps track of all our profits and business expenditures. I know many of you moms out there don’t have this help, so I want to make life a little bit easier for you by letting you know about a company called Turbotax. Our family has used them for years without any complaints!
With the new healthcare plan, taxes can be even more interesting this year. Turbotax is a great way to educate yourself now, so you will be prepared and knowledgeable when tax day comes. Are you familiar with the laws? Turbotax’s website breaks it down for you in small, understandable chunks of information — exactly what a mom needs!
The Affordable Care Act (ACA), or Obamacare, is designed to ensure everyone has health insurance and imposes tax penalties on those who don’t. 2014 is the first year all Americans are required to maintain health insurance, so you’ll be reporting it on your taxes in 2015.
TurboTax has been simplifying the federal tax code for the past 30 years and has done the same with the ACA. I like simplified stuff, don’t you? Software like Turbotax saves our family a lot of stress because we’re never exposed to the ACA forms –– TurboTax has already done the work! We just have to answer questions to ensure our taxes are done correctly. That’s pretty important for any family!
For most Americans, the ACA will affect their taxes minimally: most Americans will only need to check a box.
Let’s break down this financial stuff mom-style. Why? Because most of us are more concerned about dinner, clean clothes and home-schooling our kids than taxes. But, taxes are a necessary part of life — so we have to face them eventually! OK, here’s what you need to know:
Taxpayers will fall into three categories when it comes to ACA and taxes: those insured through an employer, those insured through health care exchanges, and those who are uninsured.
For most people (9 out of 10 taxpayers), complying with the ACA on taxes is a non-event because they have insurance through their employer, Medicaid, Medicare, or a private provider (Congressional Budget Office). They will just check a box on their tax return to confirm they have health insurance. There’s no need to spend more on tax preparation.
Insured through Exchanges:
Those who purchased insurance through the exchanges will receive a 1095-A form from healthcare.gov or their state exchange. They will enter information from their 1095-A on their taxes, just like they do with their W-2 forms.
Roughly 42 million people are uninsured in America. Those who do not have insurance and don’t qualify for exemptions will pay a penalty of about $95 or about 1% of their income.
If you’re currently uninsured, think about buying insurance this year during open enrollment. It starts on November 15 and ends February 15, 2015.
For many years our family was uninsured, but a few years ago we chose to invest in health insurance. It’s something we have to budget every single month, but it has come in handy many times in the past two years.
If you’re uninsured, I completely understand what that is like. If you’re not sure what your healthy penalty will be, Turboxtax makes that step easy too — a free calculator to estimate your penalty for 2014. The health care penalty is based on your family size and income.
Turbotax also explains exemptions and can let you know where your family stands in the exemption policy in three minutes or less!
Exemptions: About half of people that are uninsured (23 million) could qualify for an exemption, but most people are unaware and will end up paying unnecessary penalties. Turbotax helps you get all the figured out — so less stress on your part!
So while the affordable care act may sound daunting, Turbotax has made it as simple as possible by asking you questions, giving you statistics and also having a forum to ask questions. Yes, for tax help, the best place for moms to turn it Turboxtax. Our family is happy with it and we love how much time, money and stress it saves us. Hope your tax season is less-stress and no-fuss!
Where and how do you file your taxes? Do you file the taxes for your family or does your husband? I would love to hear your thoughts below!
I was selected for this opportunity as a member of Clever Girls and the content and opinions expressed here are all my own.