In the 2018 tax year the penalty for not carrying health insurance coverage, which was put in place as part of Obamacare, still exists (unless you qualify and file for an exemption with the ACA marketplace). However, under the Tax Cuts and Jobs Act in 2019 taxpayers will no longer face the levy of $695 per person or 2.5 percent of income, whichever was higher, if they choose not to carry health insurance.
As far as the actual cost of health insurance and the Affordable Care Act insurance exchanges, experts think the exchanges will survive in 2019 given that there are some federal subsidies available to lower premiums and make these kind of plans attractive to some consumers.
Another potential benefit for self-employed individuals in need of health insurance is a recently proposed rule by the Trump administration that loosens the definition of what type of individuals or businesses can purchase ‘group” healthcare. In effect, the rule would change the definition of “employer,” and circumvent some of the Obamacare regulations, allowing single people or small groups to form an association and offer health plans. This rule would also require that an association plan insure people with pre-existing conditions but does not have to cover all 10 “essential” health benefits, which may reduce the cost of these plans.
If you need tax advice for self-employed business owners in NYC or tax advice for freelancers in New York, contact our cpa office in lower Manhattan.