eHealthInsurance.com Investor Relations – News Release
“Your personal health insurance expenses often relate in complex ways to
your federal taxes,” said eHealth CEO
eHealth recommends that all tax filers consult a licensed tax advisor or certified accountant to better understand which of the tips provided below may apply to them.
Six Health Insurance Tips to Save on Taxes
1. Declare your coverage status on your tax form. In the same
year that the federal government repealed the ACA’s tax penalty for
going uninsured, the
Federal tax forms ask you to declare whether or not you had health
insurance coverage during the year. Since 2014, the
To avoid having your return rejected, you’ll likely need to report that you had health insurance that meets the standards for “minimum essential health coverage,” claim an exemption, or pay the penalty.
2. Watch out for the uninsured tax penalty “gotcha” – Because the repeal of the ACA’s tax penalty won’t take effect until the 2019 coverage year, it’s still in place for this year’s filing.
That means you may be on the hook for a penalty if you were uninsured
for more than two consecutive months in 2017. The penalty for 2017 is
either 2.5% of your taxable household income or
3. Fund your Health Savings Account (HSA) for 2017 - If you
have an HSA, there’s still time to max out your contributions for 2017,
as long as you do it before
HSA contributions for the 2017 tax year are limited to
Not sure if your health plan is eligible for use with a Health Savings Account? Ask your insurer or insurance agent.
4. Be aware of the “claw-back penalty” - If you received government subsidies in 2017 to help cover the cost of your health insurance plan, the income you list on your tax return could retroactively alter your eligibility for those subsidies.
If you earned more money last year than you originally estimated, you
may be required to pay some portion of your subsidies back to the
On the other hand, if you earned less than expected, you may have been eligible for additional assistance. That could potentially reduce your tax bill for 2017 and increase your refund.
Repayment is capped for most people who receive too much in subsidies, depending on income and tax filing status.
5. Check the mail for your 1095 form – The 1095 form comes in a few variations (1095-A, 1095-B, 1095-C), depending on whether you got your coverage through an employer or purchased it on your own. The form is official proof that you had health insurance meeting the ACA’s coverage requirements. It also confirms how much subsidy assistance (if any) you received last year.
The information on your 1095 form will help you complete your 2017federal
tax return, though you don’t need to send it to the
6. Know if you qualify for medical expense deductions – IRS Publication 502 provides a list of qualifying medical expenses that may be deductible on your return.
These can include monthly premiums you pay for certain kinds of coverage
For the 2017 tax year, you can only deduct qualifying medical expenses that exceed 7.5% of your adjusted gross income.
Please note that this article is intended to provide general information only and is not a substitute for tax, accounting, or legal advice from a professional familiar with your particular situation.
For more health insurance news and information, visit eHealth's Consumer Resource Center.