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Area CPA Says Plan Ahead For Tax Effects of Obamacare

(File illustration)

(File illustration)

(Photo by Ed Fischer) Lynne Adkins
If you’ve listened to radio in the Delaware Valley, the odds are...
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By Lynne Adkins

PHILADELPHIA (CBS) — Now that uninsured Americans can start shopping for health insurance under Obamacare (see related story), many might wonder how this will affect their taxes.

The law allows you to buy insurance through an exchange, with part of the premium possibly offset by a tax credit.

And if you don’t buy insurance you pay a penalty, which will also be noted on your income tax form this year.

Jacquelyn Basso, a certified public accountant in Downingtown, Pa., says you don’t need to claim the tax credit or pay the possible penalty until the end of next year.

“In the 2015 filing season is when you will account for the 2014 penalty,” she explains, “and you will report to the government that you do have health insurance and it will probably be a separate worksheet or form.”

If you to get a credit or pay the penalty, keep copies of the information with your tax papers, she advises — you will need it when filing in 2015.