SAN DIEGO--(BUSINESS WIRE)--A new survey reveals that almost half (48 percent) of Americans are unaware they are required to report their health insurance status on their upcoming 2014 tax returns. With the start of the tax-filing season just weeks away, the Intuit (Nasdaq:INTU) TurboTax® Health Survey, conducted online by Harris Poll among over 2,000 U.S. adults age 18+, shows Americans are still largely unaware of the connection between their health care and taxes.
Under the Affordable Care Act, 2015 will be the first year that Americans must prove they have qualifying insurance when filing 2014 taxes, or face a tax penalty. While most uninsured Americans (62 percent) are aware that those without any health insurance will be required to pay a penalty, 87 percent do not realize that the deadline to avoid a tax penalty for 2014 has passed. Health insurance purchased during the current open enrollment period, which extends through Feb. 15, 2015, will apply to returns filed in April 2016.
A majority of those without health insurance (56 percent) were also unaware that uninsured individuals who meet certain criteria may qualify for an exemption from the Affordable Care Act tax penalty.
Nearly half (45 percent) of Americans are not aware there are discounts called premium tax credits designed to make health insurance less expensive for low-to-moderate income families.
“These numbers indicate that even with open enrollment in full swing many Americans still do not know the correlation between their health care and taxes,” said Sacha Adam, the Affordable Care Act product leader for TurboTax. “We are committed to bridging this gap by providing taxpayers with free, easy-to-use tools and resources that help them realize how their health care decisions affect their taxes and household finances.”
To help Americans understand how the Affordable Care Act applies to their individual situation, TurboTax, the nation’s leading online tax preparation service, developed a free online resource at TurboTaxHealth.com. With TurboTax Health, anyone can determine if they are eligible for a low-cost health insurance plan and what the tax penalty would be if they haven’t purchased insurance. Additionally, the website offers TurboTax Exemption Check, a free online service that helps people without insurance determine, in just a few minutes, if they qualify for an exemption from the ACA penalty and then apply for that exemption.
Others key findings for the Intuit TurboTax® Health Survey:
- Nine out of 10 Americans have health insurance. Those who live in Southern states are less likely than all other regions to have health insurance (85% insured in the South vs. 94% insured in the Northeast, 93% insured in the Midwest and 90% insured in the West).
- Nearly three quarters (74 percent) of Americans who purchased a health care plan through the Health Insurance Marketplace last year plan to renew it for next year.
- Those who purchased health insurance through the Marketplace during first enrollment are significantly more likely to be aware of premium tax credits than other insured groups.
- Americans who are covered by their parents’ health insurance plan are less likely to be aware of tax penalties (55%) than those who have health insurance through an employer (70%).
The full report is available upon request.
The surveys were conducted online within the United States by Harris Poll on behalf of TurboTax from November 6-10 among 2,022 adults age 18 and older and November 13-17, 2014, among 2,014 adults ages 18 and older. The online surveys are not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated.
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®, Quicken® and TurboTax®, which make it easier to manage small businesses and payroll processing, personal finance, and tax preparation and filing. Mint.com provides a fresh, easy and intelligent way for people to manage their money, while Demandforce® offers marketing and communication tools for small businesses. 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 2013. The company has approximately 8,000 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.
About The Harris Poll
Over the last 5 decades, Harris Polls have become media staples. With comprehensive experience and precise technique in public opinion polling, along with a proven track record of uncovering consumers’ motivations and behaviors, The Harris Poll has gained strong brand recognition around the world. The Harris Poll offers a diverse portfolio of proprietary client solutions to transform relevant insights into actionable foresight for a wide range of industries including health care, technology, public affairs, energy, telecommunications, financial services, insurance, media, retail, restaurant, and consumer packaged goods.