New Tax Forms To Fill Out Regarding Your Healthcare Coverage
This year, there are some changes to tax forms related to the Affordable Care Act. For the first time, you will have to state whether you had health insurance, through an employer, one of the exchanges or purchased privately. And if you did not have health insurance, you could face a penalty.
Along with a few new lines on existing forms, there will also be two new forms that will need to be included with some tax returns. While most taxpayers will simply need to check a box on their tax return to indicate they had health coverage for all of 2014, there are also new lines on Forms 1040, 1040A, and 1040EZ related to the health care law. Check below to see how what you will need to do!
I Have Health Coverage From An Employer Or A Government Program Such As Medicare or Medicaid
When you file your return, you will be asked to if you had a minimum level of health coverage for all of 2014. There’s a new line on the 1040-line 61, where you attest that you do, in fact, have health coverage. If that is the case, then check the box. On the 1040EZ, health care is on line 11 and on the 1040A it is located on Line 38.
You will also need to state if everyone in your household had minimum level of health coverage, including those who may have had different insurance from you.
I Bought My Health Insurance From Healthcare Exchange
If you enrolled in a health plan through the Marketplace, you’ll get Form 1095-A in the mail from the Marketplace by early February. Keep this form with your other important tax information, like your W-2 and other tax records. You won’t get this form if you have health coverage through Medicaid, Medicare, or the Children’s Health Insurance Program (CHIP).
The 1095-A shows how much your total insurance premium was and how large a tax credit you got each month you were covered. You will need that information to fill out another form, called Form 8962. Form 8962determines your final premium tax credit for 2014. When you applied for a credit, you told the exchange what you expected to earn in 2014, and that number was used to calculate your subsidy. Now, when you file the 8962 with your taxes, you’re running the numbers again based on what you really made. If those amounts are different, your tax credits have to be adjusted.
I Do Not Have Health Coverage At All
If you could’ve afforded health coverage in 2014 but chose not to buy it and you don’t qualify for an exemption, you may need to pay a fee with your federal tax return.The fee is based on your income, and how many months you didn’t have health coverage. Generally, the higher your income and the more months you were without health coverage, the higher the fee.
If you didn’t have health coverage for all of 2014, you’ll pay the higher of:
$95 per person who was without coverage for the year ($47.50 per child under 18). The maximum fee per family using this method is $285.
An amount that varies depending on your income (generally 1% of your yearly household income over a certain threshold).
The fee increases each year. In 2015, it’s $325 per person or 2% of your yearly household income over the threshold. In 2016, it’s $695 per person or 2.5% of your income over the threshold. After that it’s adjusted for inflation.