How to evade penalty for lacking medical coverage
Eva MarcilleHow to Evade Penalty for Lacking Medical Coverage
Are you one of the millions of Americans who do not have medical coverage? If so, you may be subject to a penalty when you file your taxes. However, there are ways to evade this penalty. In this article, we will explore some of the options available to you.
Exemptions
One way to avoid the penalty for lacking medical coverage is to claim an exemption on your tax return. There are several different types ofexemptionsavailable, including those for hardship, religious beliefs, and income level. To claim an exemption, you will need to file Form 8965 with your tax return.
Short Coverage Gap
If you were without coverage for less than three consecutive months during the year, you may be able to avoid the penalty. This is known as the short coverage gap exemption. However, if you were without coverage for more than three months, you may be subject to the penalty for the entire year.
Healthcare Sharing Ministry
Another option for those without medical coverage is to join a healthcare sharing ministry. These organizations are not insurance companies, but rather groups of individuals who share healthcare costs. Members of these ministries are often exempt from the penalty for lacking medical coverage.
Affordable Care Act
Under the Affordable Care Act, individuals are required to have medical coverage or face a penalty. However, the penalty has been eliminated for 2019 and beyond. This means that if you do not have coverage, you will not be subject to a penalty when you file your taxes.
Insurance Options
While there are ways to avoid the penalty for lacking medical coverage, it is still important to have insurance. Medical bills can be expensive, and having insurance can provide financial protection in the event of a medical emergency. There are a variety ofinsurance optionsavailable, including employer-sponsored plans, individual plans, and government programs like Medicaid and Medicare.
Conclusion
In conclusion, there are several ways to evade the penalty for lacking medical coverage, including claiming an exemption, having a short coverage gap, joining a healthcare sharing ministry, and taking advantage of changes to the Affordable Care Act. However, it is still important to have insurance to protect yourself financially. As an insurance advisor, I recommend exploring your options and finding the plan that best fits your needs and budget. By doing so, you can ensure that you and your family are protected in the event of a medical emergency.
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