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3 Reasons to Buy Health Insurance During Tax Season

3 Reasons to Buy Health Insurance During Tax Season - TaxACT

Tax Day is nearly upon us, and even if your finances are in perfect order, it’s hard not to breathe a sigh of relief when you’ve finally filed your tax return.

Compiling information and receipts for 365 days’ worth of personal and business transactions can sometimes feel like an insurmountable task.

Tax season is actually the perfect time to buy health insurance if you’ve been dragging your feet and haven’t already signed up. Not to mention that the drop-dead deadline for open enrollment under the Affordable Care Act (ACA) is March 31.

Whether you’re planning to enroll in a plan through healthcare.gov, your state’s marketplace, or a certified private marketplace like GetInsured, here are three more reasons why March is your month to get covered:

1. A tax refund could cover the cost of your healthcare

According to the IRS, about 3 out of 4 taxpayers receive cash back each year with an average refund of around $3,211. That’s a nice chunk of change. And it means you won’t have to carve up your monthly budget to pay for healthcare.

While a big splurge may be tempting, why not invest in your health for peace of mind?

Plus, with many affordable options now available through the marketplaces, even after setting aside money for a year’s worth of premiums, you may still have a few bucks left.

If you’re curious about all the benefits that come with coverage, GetInsured offers a wealth of information about the pros and cons of marketplace plans, from platinum to bronze.

2. Your documents are already on hand to buy health insurance

Since you’ve done the heavy lifting of gathering information for your taxes, why not get some extra mileage from all that hard work?

The documentation you put together for your tax prep is exactly what you’ll need to sign up for health insurance: social security number, employment income, self-employment income, and any income deductions (like student loan interest).

In fact, all the tax information you’ll need to apply for coverage is provided in TaxACT’s HealthWatch Report after you’ve entered your tax return information. How convenient is that?

If you want to know exactly what information you’ll be required to provide when buying health insurance, healthcare.gov can generate a personalized checklist based on your financial situation.

3. It’s the perfect time to get personal about medical deductions

During tax season, there’s no sweeter word than “deduction.” According to the IRS, unreimbursed medical expenses can be claimed on your 2013 return (if you itemize your deductions) as long as they exceed 10 percent of your adjusted gross income. (If you were age 65 or older at the close of 2013, you can use last year’s figure of 7.5 percent.)

This number may seem a little high, but if you had a serious illness or no insurance coverage in 2013 and ended up with some big out-of-pocket medical bills, they could bring you over that 10 percent threshold.

Many people don’t bother collecting and tallying their receipts, assuming that they won’t add up, but that can be a costly mistake.

If you’re self-employed, for example, your monthly premiums may be deductible, from acupuncture and air-conditioners (if you can prove medical necessity) to an adapter for your TV that displays closed-captioning if you’re hearing impaired, you’d be surprised by many of the expenses you’re entitled to claim.

The IRS provides a thorough and updated list of what can and cannot be deducted on your tax return.

Why not put in a little time to learn the rules when it could save you a bundle?

To find out more, go to GetInsured.com or call 855-224-9212 to get help finding the best plan for you.

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