Dropping Dependents Could Cost Employees at Tax Time

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Dropping Dependents Could Cost Employees at Tax Time
Calendar07 August 2015

The ACA requires most people to have insurance or pay a penalty. That means employees with adult children need to think twice about discontinuing health coverage for their dependent children as they get older. As long as an employee is claiming a child as a dependent for income tax purposes, they need to be sure the child has health insurance. At tax time, filers are required to show everyone in the household had health insurance (See lines 46 and 61 of Form 1040). In 2015, the penalty is the greater of 2% of household income or $325 per person. You might want to remind your employees of this in time for open enrollment.

Go to full article: www.npr.org

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