Follow Caroline Linkedin Facebook
Email Caroline Email
Financial
Sep 1, 2019

Are You Still Paying Tax Penalties for Not Having Health Insurance?

Sponsored Content provided by Caroline Montgomery - Tax Manager, Partner, Adam Shay CPA, PLLC

Most people are familiar with the Affordable Care Act (ACA) and the requirement to have health insurance or else be penalized on income tax returns. It’s certainly been a pain point over the last few years, especially for self-employed individuals. We have some good news for those that have been impacted!

There is a little known break that will help residents of most North Carolina counties (including New Hanover County, Brunswick, and Pender Counties) for 2017 and beyond. Judging by the number of income tax returns we’ve seen reporting a penalty when it should not have been, many income tax preparers in the area do not know about a new exception that exempts taxpayers from the penalty. Since there is only one marketplace insurance provider on the health insurance exchange for 2017 and 2018, taxpayers can claim a hardship exemption. With this retroactive change for 2017, our firm has saved 20+ clients over $50,000 in 2017 amended income tax refund claims.

For 2019 there are no tax penalties for not having health insurance, so it will be a non-issue and a hardship exemption does not have to be filed. What do you do if you are unsure whether you paid a penalty on your tax return for not having health insurance? On your 2017 income tax return you can look at line 61 of your 1040 income tax return. On your 2018 income tax return the penalty is reflected on line 61 of Schedule 4 (if you don’t have schedule 4 then you don’t have the penalty).

My goal today was to help make sure that you have not paid more in tax than you needed to for 2017 and 2018. If you have any specific questions, feel free to reach out to me.

Caroline Montgomery, CPA (NC License Number 39017), MSA, is tax manager and partner of Adam Shay CPA, PLLC. The most rewarding part of what she does is helping business owners and individuals achieve their goals, all while working with a dynamic team that is growing quickly. The firm focuses on a proactive approach by encouraging clients to minimize taxes via income tax planning and projections, or by focusing on other areas of their business as part of the firm's Virtual CFO services. The firm also offers tax preparation, fraud and forensic accounting and tax issue resolution services. She moved to Wilmington in 2014 and started at the firm in 2015. Caroline graduated with her her undergraduate and graduate degree in 2010 from East Carolina University. She is actively involved with NourishNC as their Treasurer and enjoys volunteering with various organizations throughout New Hanover County. In her free time, Caroline enjoys spending time with her husband, Mike, and dog, Mason, as well as travelling and going to the beach.
 

Adam shay blk 52015121549 61219103751
Ico insights

INSIGHTS

SPONSORS' CONTENT
Hardy revised

The Future Of Health Care: Administration

Charles Hardy - UNCW College of Health and Human Services
Christy2

Roof Maxx is a Roofing Disrupter

Christy West - Roof Rescue of Wilmington LLC/Roof Maxx
Sherrip2019 insights profile

That’s Who We Are

Sherri Pridgen - Cape Fear REALTORS®

Trending News

Bankruptcy Filing: Vertex Railcar Owes More Than $45M

Cece Nunn - Nov 19, 2019

Beach & Barn Raises $230K

Johanna Cano - Nov 19, 2019

Group Forms To Oppose Hospital Sale Or Partnership

Johanna Cano - Nov 20, 2019

Wave Transit To Unveil New Downtown Trolley Next Week

Christina Haley O'Neal - Nov 19, 2019

Area Restaurants Honored At Taste Of Wrightsville Beach 

Jessica Maurer - Nov 20, 2019

In The Current Issue

Digital Human Helps Hearts

Hanna is the work of Marie Johnson, managing director at Centre for Digital Business in Australia, Chris Hillier, New Hanover Regional Medic...


MADE: Mounting An Expansion

Grunt Tough is a software and traditional manufacturing company; products are made and distributed out of its Wilmington facility....


Sport Attracts Players To Leland

When you want to socialize and engage in a multi-generational activity, Leland has a place to go: the House of Pickleball....

Book On Business

The 2019 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

August 26, 2019 Power Breakfast: A Healthy Sale?
WILMA's Leadership Accelerator
2019 WilmingtonBiz Expo Keynote Lunch - CEO, nCino, Pierre Naude`