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
Chris coudriet

New Hanover County Awards $1.3 Million To 130 Local Small Businesses

Chris Coudriet - New Hanover County Government
Alycephillipsnew2

Charitable Trusts Let You Split Gifts Between Philanthropy, Family

Alyce Phillips - Old North State Trust LLC
Carolinemontgomery4

Paycheck Protection Forgiveness Just Got A Lot Easier

Caroline Montgomery - Adam Shay CPA, PLLC

Trending News

Mortgage Firm Relocating To Barclay Commons

Cece Nunn - Jul 6, 2020

With Novant Recommendation, Here's What Happens Next In NHRMC Talks

Vicky Janowski - Jul 6, 2020

In The Current Issue

New Eateries Still Open Despite Virus

While some restaurants have gone out of business and others are still temporarily closed, others are expanding....


Boom And Bust

Parts of the local and national economy seem to be thriving amidst ongoing restrictions aimed at slowing the spread of COVID-19, while other...


Businesses Continue To Adapt To Times

An update on how businesses that were part of the Working Through It series are still coping as a result of the coronavirus pandemic, starti...

Book On Business

The 2020 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

2020 Leadership Accelerator: Virtual Workshops for Real Leaders
2019 Health Care Heroes
August 26, 2019 Power Breakfast: A Healthy Sale?
2019 WilmingtonBiz Expo Keynote Lunch - CEO, nCino, Pierre Naude`