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Insurance Not Offered at Work

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The following are cases where the employer doesn’t offer health insurance or you are self-employed

Single without dependents

This could be a beneficial scenario for you. If you don’t have insurance and if your 2012 profit and MAGI is over $15,856 and under $45,960 you may qualify for government help to get insurance through an Exchange. Most can find the income amount on the bottom of page 1 of your 2012 Tax form 1040. For a few there will be some additions and deductions to arrive at it. Check out this document for the details. If your MAGI is under $15,856 go to this scenario. So let’s say your MAGI is $28,000 and you are 40 years old. Having that income means that you are at 244% of poverty level and you qualify for $1,048 credit per year. If you get a Silver plan you will pay $2,192 ($182.67 monthly). If you choose a Bronze plan you will get the same $1,048 credit and pay $1,638 for the year or $136.50 per month. You can see the logic behind the calculations here. You can visit this link to make the calculations yourself. If you decide not to get insurance, then you will have to see if you face a penalty.

Family of 2 or more

The new law could be very good for you if your income is within the range $21,404 and $62,040 for a family of 2. For every additional family member, add $16,080 to the top. For example if you make 40,000 and you are 40 with a child, then you could qualify for about $1,500 per year credit for insurance for both of you. If the Bronze level costs $4,000 or about $333 per month, then you would only need to pay $208 for coverage for both and the government will cover the difference of $125 per month.
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About the Author:

Started his tax accounting career in 2004. Co-owner at a tax preparation and representation firm and Enrolled Agent licensed by the IRS. Specializes in individuals as well as partnerships, corporations, trusts and estates and can represent taxpayers in case of an IRS audit.