Health insurance

[T33 oe]

Hi, hope all is well.

I was wondering how might a short period of inactive health insurance for a 1 year old effect my taxes?

Thanks in advance!

[BettieG]

Hi T33 oe!  Thanks for your question!

Health insurance is a tax issue in certain circumstances.

First, assuming that you receive the premium tax credit because your insurance was obtained through the Health Insurance Marketplace, a period of inactive (or no) coverage might result in your having to repay any premium tax credit you previously received.

Second, a number of states (but not the federal government) require that health insurance be maintained for residents for the entire year.  At the moment, residents of California, Massachusetts, Rhode Island, New Jersey, and Vermont) require health insurance and may impose a penalty for any lapses in coverage.

Other than these situations, a lapse in health insurance coverage would not affect your tax situation directly.

I hope this helps!