70 Percent of Uninsured Taxpayers Claim Health Care Exemption Saving up to $1000

Nearly three in four uninsured TurboTax filers claimed an exemption from the individual health care mandate tax penalty as of Jan. 31, according to new data from TurboTax®, the nation’s leading online tax preparation service from Intuit Inc. (Nasdaq:INTU). TurboTax reports that affordability under IRS income guidelines of health plans in a taxpayer’s area or through their work place were the top two reasons for exemption claims followed by other exemptions such as eviction and recent death of a close family member.

Penalties are on the rise, but nearly three quarters of uninsured claimed exemptions

The penalty for having gone without health insurance in 2015 is $325 per adult and $162.50 per child (up to $975 for a family) or two percent of household income, whichever is greater. To date, 70 percent of uninsured or partially insured TurboTax users claimed an exemption from the individual mandate tax penalty. This number is in line with last year’s overall tax season data.

“The IRS reported that about 300,000 people who paid the penalty likely qualified for an exemption last year. With the penalty nearly doubling this year, TurboTax urges those without health coverage to see if they qualify for an exemption from a tax penalty,” said Debra Hammer, TurboTax ACA spokesperson. “The good news is that TurboTax automatically scans for potential hardship and affordability exemptions based on information in the individual’s tax return and makes all the necessary calculations.”

In addition, TurboTax offers Exemption Check, a free, online tool available to those who want to see if they may qualify for an exemption and those who need help to apply for a non-hardship Exemption Certificate Number (ECN).

New health insurance forms should not delay tax filing

Eight out of 10 taxpayers have health coverage through an employer, a government program such as Medicaid, or other private insurance and may get a new 1095-B or 1095-C form this year. According to the IRS, most taxpayers don’t need to wait to receive these forms to file their taxes nor do they need to attach this information to their return. Taxpayers may simply “check a box” if they had coverage for the full year, quickly and easily satisfying their reporting requirement. If taxpayers do receive a 1095-B or 1095-C, they should review the form for accuracy and save the form with their other tax records. TurboTax hasn’t seen significant delays in tax filing due to new health insurance forms 1095-B or C.

Like last year, people who purchased health coverage on a Health Insurance Marketplace should have received Form 1095-A, which confirms their coverage, premiums and any subsidies they might have received. Entering 1095-A information in TurboTax is as simple as entering a W-2. These forms are needed for filing and being able to maintain premium assistance into 2017. Form 1095-A can be accessed through healthcare.gov or state Marketplaces.

Tax time also presents an ideal opportunity to review and update current income. The TurboTax Income Estimator can help ensure Marketplace premium tax credits are accurate for 2016.

About Intuit Inc.

Intuit Inc. creates business and financial management solutions that simplify the business of life for small businesses, consumers and accounting professionals.

Its flagship products and services include QuickBooks® and TurboTax®, which make it easier to manage small businesses and tax preparation and filing. Mint.com provides a fresh, easy and intelligent way for people to manage their money, while ProSeries® and Lacerte® are Intuit's leading tax preparation offerings for professional accountants.

Founded in 1983, Intuit had revenue of $4.2 billion in its fiscal year 2015. The company has approximately 7,700 employees with major offices in the United States, Canada, the United Kingdom, India and other locations. More information can be found at www.intuit.com.

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