Uncle Sam Will Be Stuffing a Medical Bill in With Your Tax Bill This Year

“When they file their returns this year, some Americans will get a medical bill with their tax bill.

Starting next January, the Affordable Care Act mandates that every American have health coverage, and those who remain uninsured will pay a penalty. The extent to which one is eligible for federal subsidies to buy insurance, and the penalties for failing to comply with the mandate, will both be determined using one number: the adjusted income reported to the Internal Revenue Service this year. “So much of the Affordable Care Act is being implemented through the tax code,” says Kathy Pickering, executive director of the Tax Institute at H&R Block. And for many taxpayers, “their tax situation will factor into health-care decisions as well,” she says….”

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