Virginia Beach, VA (PRWEB) February 18, 2014
The deadline to be in compliance with the Affordable Care Act (ACA), commonly known as Obamacare, is fast approaching. Liberty Tax Service, a subsidiary of JTH Holding, Inc. (NASDAQ: TAX), is reminding Americans that in order to avoid being penalized, they must have health insurance for themselves and their dependents by March 31, 2014. For individuals who sign up by February 15, their healthcare plan will begin on March 1, 2014.
Individuals who do not have health insurance and do not qualify for an exemption from the individual mandate of the ACA, they will have to pay the Shared Responsibility Payment on their tax return in 2015. The penalty will be the greater of 1% of their income or $95 per adult and $47.50 per child.
Some exemptions from the penalty are listed below. Individuals or families may be exempt if:
- They are uninsured for less than 3 months throughout the year;
- It would cost more than 8% of their household income to pay for the insurance premiums for the lowest level plan;
- Their household income is less than the filing requirement;
- They are recognized as a member of a Native American Tribe;
- They are part of a recognized health care sharing ministry;
- They are a member of a recognized religious organization that is opposed to receiving benefits;
- They are incarcerated;
- They are not legally present in the United States; or
- They qualify for a hardship exemption.
Some may be eligible for subsidies that can help pay for health insurance premiums. If the individual’s household income is less than 400% of the Federal Poverty Level, $46,680 for an individual or $95,400 for a family of four, they may qualify for the Premium Tax Credit (PTC). The PTC can be received in advance to help pay for health insurance costs or it can be received through a tax return. The amount of the PTC received is based on the individual’s household income and family size. If an individual receives the PTC in advance, it will be reconciled on their tax return.
For more information on health insurance and the government subsidies visit Liberty Tax’s health care website at http://www.healthcaretaxinfo.com or call 800-673-8600.
About JTH Holding, Inc.
Founded in 1997 by CEO John T. Hewitt, JTH Holding, Inc. (NASDAQ: TAX), is the parent company of Liberty Tax Service. Liberty Tax is the fastest-growing tax preparation franchise and has prepared almost 16 million individual income tax returns in more than 4,500 offices and online. Liberty Tax’s online services are available through eSmart Tax, Liberty Online and DIY Tax, and are all backed by the tax professionals at Liberty Tax locations and its nationwide network of over 30,000 tax preparers. Liberty Tax also supports local communities with fundraising endeavors and contributes as a national sponsor for many charitable causes. For a more in-depth look, visit Liberty Tax Service and interact with Liberty Tax on Twitter and Facebook.
Chief Marketing Officer
Liberty Tax Service