ObamaCare and Your Taxes

January 17th, 2015 at 10:55 AM

Here are 5 important points that you should know about the new Health Insurance and your taxes:

1. Watch the mail for From 1095-A. If you enrolled in a Marketplace healthcare plan in 2014, you’ll get this new form in the mail from the Marketplace by early February. This form contains important information; such as your monthly premiums and advance payments of the premium tax credit that were paid to your health plan in 2014.
2. Your final premium tax credit for 2014 will be computed with your federal income tax return. The amount of your 2014 premium tax credit is based on your final income for the year, which you’ll find out when you complete your tax filing. If during the year you used less advance payments of the premium tax credits that you were eligible for, you’ll receive a credit on your tax return. If you took more advance payments than you were eligible for, you may need to pay the difference with your your tax return filing.
3. If you did not have health coverage for part of 2014, use Form 8965. If your Marketplace coverage started partway through 2014 and you were uninsured earlier in the year, you’ll need to fill out IRS Form 8965. the filing of this form will show if you qualify for an exemption from paying a fee for the months you didn’t have coverage.
4. You may pay a fee with your taxes if you did not have health insurance in 2014 and you did not get an exemption. If you could have afforded health insurance in 2014 but chose not to buy it, and you do not qualify for an exemption, you may need to pay a fee with the filing of your federal income tax return.
5. If you had health coverage from another source, you will just need to check a box on your tax return. You will not receive Form 1095-A. Coverage from another source includes health insurance from a job, Medicare, Medicaid, or a plan you purchased outside the Marketplace.

I’m certain in the next few weeks, additional information will be forthcoming.

I will keep you posted.