Freedom from tax penalties
This New Tax Law Will Save You $2,000+
The new tax law brought a lot of changes for taxpayers this year. We broke down the 4 key changes in blogs posted earlier this year. Please check them out if you missed them. Those changes resulted in some winners and some losers. Beyond those 4 big change, there are other smaller changes that are great news for many taxpayers.
One change that resulted from the Tax Cut and Jobs Acts of 2017 is a removal of the individual mandate included to the Affordable Care Act. This could save a lot of patients big money at tax time! Many taxpayers did not have the required minimum essential coverage and had to a penalty. The fee was a hefty $2,085 per family or 2.5% of your income, whichever was higher.
Thankfully, 2018 is the last year that penalty will apply. Beginning in 2019, there will no longer be a penalty for not having health insurance.
While this is good news from a tax standpoint, you might be asking: Who in the world would not want health insurance? The average American spent $10,345 on healthcare in 2016. With insurance. The average family plan cost $833 per month, which led to many finding healthcare unaffordable and looking for alternative solutions.
We highly recommend a solution that saves you tax dollars and in your healthcare costs. A longtime practice, the direct primary care model is more about patients and less about business. The physician provides unlimited services for an affordable monthly fee, which sounds much better than the high deductible plans many insurance companies offer. We estimate that the removal of the penalty, coupled with the option to get quality healthcare via other options could save families over $8,000 beginning in 2019. Needless to say, this is certainly a great savings, and news worth celebrating.
What do you think? Will you keep or drop your insurance in 2019?