Welcome back. In our previous article we discussed a few tax tips for alimony, spousal IRAs and even name changes. This week we share with you some pointers about Health Care Laws that you may need to consider during tax season.
However, before we begin we remind our readers that both health care laws and tax laws do change. So keep in mind that while we will always try to provide the most current and updated information, the law is not static or carved in stone. It does change and so we recommend that you speak with a Certified Public Accountant of financial advisor if you have any questions or concerns about your taxes.
Special Marketplace Enrollment Period:
If you lose your health insurance coverage because of a divorce, you are still required to have coverage for every month of the year, both for yourself and for any dependents you claim on your tax return. You may enroll in health coverage through the Health Insurance Marketplace during a Special Enrollment Period if you lose coverage due to a divorce.
The Special Enrollment Period (SEP) is defined as a specific length of time outside the yearly Open Enrollment Period when you can sign up for health insurance. You qualify for a Special Enrollment Period if you’ve experienced what is considered to be specific ‘life events’. These life events include getting married, adopting a child, getting a divorce, having a baby and moving to another state.
If you qualify for the SEP, you usually have up to 60 days following the event to enroll in a plan. If you miss that window, you will have to wait until the next Open Enrollment Period to apply. This could mean months without coverage.
Changes in Circumstances:
If you purchase health insurance coverage through the Health Insurance Marketplace, you may be eligible for advance payments of the premium tax credit. If you do, you should report any changes in circumstances to your Marketplace throughout the year.
This could include getting married or divorced, moving to a new home or legally changing your name, and changes in your income or family size. Reporting these changes will help make sure that you get the proper type and amount of financial assistance. This will also help you to avoid getting too much or too little credit in advance.
Shared Policy Allocation:
If you get divorced or legally separated during the tax year, and you choose to continue your enrollment in the same qualified health plan, you and your former spouse must allocate policy amounts on your separate tax returns to figure your premium tax credit and reconcile any advance payments made on your behalf.
We hope this information has been helpful to you during this tax season. However, if your needs have less to do with taxes and more to do with other areas of divorce, custody, alimony or family law, we are here to help you. Whether it’s assistance with a prenuptial agreement, or you need help with your divorce process, the skilled family law attorneys at the Farmington Hills office of The Kronzek Firm have decades of experience and are available to help you with all of your family law needs. Call our Oakland County, MI office today at 248 306 4004 and discuss your situation with one of our experienced attorneys. We are here to help.