How Will Obamacare’s Premium Increases Affect My Income Taxes This Year?
This is an interesting question considering who our new president will be. According to President-Elect, Donald Trump, on his campaign trail, he will repeal Obamacare, technically known as the Affordable Care Act. However, he had recently stated in a television interview that he would simply replace Obamacare with something he believes to be better. If he’s replacing it, then that may mean that universal healthcare is not totally lost. However, you can expect how this plan might be covered to change in favor of the higher-paid taxpayers—according to Republican values.
Yet, all of this remains to be seen. Like most presidents, not all of them are able to keep the promises they made on the campaign trail. A lot of that has to do with whether the House of Representatives supports them or not. At the end of the day, there’s no way of knowing exactly if Obamacare’s premium will increase at all. Even with the new president-elect they still might. Then again, maybe they won’t.
So what does this mean for you? How can you prepare for this when the 2017 tax season comes around?
Well, for the most part, filing your 2016 taxes won’t affect your annual tax filing all that much because not much will change. It’s actually the 2018 annual tax season where you might see the difference. As far as the premiums go, if things go as plan, then you can expect to see a surge. According to The Fiscal Times, Obamacare premiums increased at approximately 8% – 11%.
The only way this may affect your taxes depends on how much you spend on out-of-pocket healthcare expenses. If your healthcare expenses exceed the standard deduction, then you’ll be able to deduct that on your taxes instead.
What Else Do I Need to Know?
If you’re interested in learning more about how the Obamacare premium increase will affect how much you’ll pay in taxes your annual filing, consult the experienced tax professionals at Success Tax Relief. We have a team of seasoned tax preparers, tax lawyers, CPAs, and accountants who can answer any tax questions you may have. Whether it’s personal or business related, Success Tax Relief can provide consultation services regarding tax audits, Offer in Compromise, installment agreements with the Internal Revenue Service, and of course tax preparations.
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