Remember when the Affordable Heath Care Act became a law? One of the biggest complaints about the law, more commonly known as Obamacare, is that it forced people to sign up for healthcare. Those who didn’t had to pay a tax penalty. It was a sticking point for a lot of lawmakers and taxpayers alike.
Well, with the new administration now in place, things are changing. There’s some good news for those who don’t have health insurance and want to avoid being hit with extra taxes. That’s because the Centers for Medicare & Medicaid Services recently announced a new way for those without health insurance this year to avoid being hit with a tax penalty.
Under Obamacare, there was a provision that helped certain individuals facing difficult circumstances avoid the tax penalty. But it only covered people facing certain hardships. Additionally, those taxpayers had to have documentation to prove their circumstances.
Under the new policy announced by the Centers for Medicare & Medicaid Services, people can now claim hardship exemptions for more general financial struggles. In addition, taxpayers no longer have to provide “the documentary evidence or written explanation generally required.”
To be safe, however, the Centers for Medicare & Medicaid Services recommends keeping all paperwork related to claiming the hardship.
One more thing: the “Tax Cut and Jobs Act” completely eliminates the tax penalty for not having health care starting in 2019.