PARSIPPANY, N.J., Oct. 22, 2013 /PRNewswire/ -- There are more "boomerang" adult children today than at any time in the last 50 years. During the recent recession, roughly 12 million young adults moved back home with their parents (at least temporarily). Recent survey research indicates that approximately 29 percent of parents with adult children report that a child has moved in with them because of the economy. And because of their age, many are ineligible for their parent's health coverage through work and, therefore, are uninsured.
The Affordable Care Act (ACA) has several surprising implications for these young adults – and their parents. According to a new study by Jackson Hewitt® titled Moving Back Home: Unexpected Implications of the ACA on Adult "Boomerang" Children, access to affordable health insurance under the ACA among these young adults will vary significantly – depending on their tax circumstances and state of residence. Boomerang children who remain uninsured could unknowingly expose their parents to significant tax penalties, even if the rest of the family has health coverage.
"Because of the complexity of these rules, these young adults and their parents are understandably confused," said Brian Haile, senior vice president for Health Care Policy at Jackson Hewitt and co-author of the report. "Boomerang adult children may be relatively less likely to have insurance and need of ACA assistance – so we lay out the key issues and provide an explanation for them and their families. Particularly given the federal focus on enrolling young, healthy individuals (or 'young invincibles'), these issues may merit special attention from federal policymakers."
About Jackson Hewitt Tax Service Inc.
Jackson Hewitt Tax Service Inc. is an industry-leading provider of full service individual federal and state income tax preparation, with 6,800 franchised and company-owned locations throughout the United States, including 2,800 located in Walmart stores nationwide, and more than 400 Sears stores in the United States and Puerto Rico for the 2013 tax season. Jackson Hewitt Tax Service® also offers an online tax preparation product at www.JacksonHewittOnline.com. For more information, or to locate your neighborhood Jackson Hewitt® office, visit www.JacksonHewitt.com or call 1-800-234-1040.
Jackson Hewitt Tax Service
SOURCE Jackson Hewitt Tax Service Inc.