Obamacare affects your 2012 tax return - 12 News KBMT and K-JAC. News, Weather and Sports for SE Texas

Obamacare affects your 2012 tax return

Tax professionals say millions of people will be affected by changes in the tax code this season because of the Affordable Health Care Act.

"It's going to affect their refund then this is critical to the taxpayer," said tax preparer Dorothy Brashier.

After preparing taxes for 32 years Brashier says the Affordable Health Care Act is the biggest change to the tax code in more than 20 years and will affect more than 20 million taxpayers.

"Because it is involving 2012's return it's critical that our clients understand how it's going to affect 2013 and 2014," said Brashier.

As opposed to years past now whoever you claim as a dependent on your taxes you will be responsible for paying their health insurance.

"If mom or dad are filing for medical insurance the kids have to be on the tax return this year," said Brashier.

The IRS will use your 2012 tax return to determine how much you should be paying in health insurance, which is great news to someone like Brenda Sharlow.

"If they're going to go by it at that point and go by your income then I agree with that," said Sharlow.

By the year 2014 everyone has to have insurance meaning there are only more changes to come.

In 2014 the IRS will change the 1040 tax form adding a line to list the penalty for not getting health insurance.

"Could be up to maybe $1,000," said Brashier.

Your 2012 tax return will determine if you will be able to have a tax credit to help cover the cost for health care benefits but James Vincent is weary of the new rules.

"A tax break on my part would be nice but I'll believe it when I see it," said Vincent.

If you refuse to get health insurance the penalties will increase from year to year. By the year 2016 you could be fined up to two thousand dollars for not having health insurance.