The Affordable Care Act and Your Tax Return

This article was last edited on Jan. 15, 2016. For updated information on the Affordable Care Act, visit Obamacare Changes and Open Enrollment.

American taxpayers should remain aware of tax provisions in the Affordable Care Act that affect how individuals and families file their taxes. The health care law requires important tax forms, including two new health care information reporting forms for 2016.

To file your income tax return, keep your eyes peeled for the following forms. The IRS recently adjusted the deadlines for employers and health insurance providers to provide two of the forms so we have a made a note of the new dates below. The forms will be mailed, hand-delivered or provided electronically.

  1. Form 1095-A, Health Insurance Marketplace Statement: You will receive this from the Marketplace if you enrolled in coverage there.
  2. Form 1095-B, Health Coverage: You will receive this from your health insurance provider outside of the Marketplace with details about who was covered and for what period.
  3. Form 1095-C, Employer-Provided Health Insurance Offer and Coverage: Some employers (generally those with 50 or more full-time employees including full-time equivalent employees) send this form to certain employees with information about what coverage the employer offered.

According to the IRS, some taxpayers may not receive 1095-B or 1095-C by the time they are ready to file their 2015 tax returns. The forms are not required for preparing a return. While they are helpful, other information about an individual’s health insurance can be used. Individuals do not have to wait for the forms to file their return. The forms provide a record of health coverage but don’t need to be attached to the tax return.

If you are expecting to receive Form 1095-A, you should wait until you receive it you file your 2015 return.

Use these forms to verify that you, your spouse and your dependents had coverage for each month during the year. You will check a box on your return to report that you had minimum essential coverage for every month of the year. If you receive Form 1095-A, use it to complete a Form 8962.

Don’t attach the forms to your tax return. Keep them for your records.

This article is intended to provide general information to the public and does not provide personalized tax, investment, legal, or business advice. You should seek the assistance of a professional for advice on taxes, investments, and any other financial, legal, or business matter pertinent to your individual situation.

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