1 of 1- Common Sense
- Exchanger
Offline - Registered: 2/16/2015
- Posts: 3,256
Affordable Care Act Tax Provisions for Individuals and Families
Sorry for the mess? It's not posting right??
Affordable Care Act Tax Provisions for Individuals and FamiliesEspañolTax Time and the Health Care Law: The individual shared responsibility provision requires that you and each member of your family have qualifying health insurance, a health coverage exemption, or make a payment when you file. If you, your spouse and dependents had health insurance coverage all year, you will indicate this by simply checking a box on your tax return. No further action is required. For those who purchased coverage through the Marketplace, you may be eligible for the premium tax credit. This is the first year that you will report health coverage on your tax return.Filing electronically is the easiest way to file a complete and accurate tax return. The
software guides individuals and tax preparers through the process and does all the math. Electronic filing options include: free Volunteer Assistance, IRS Free File, commercial software, and professional assistance. =largeReporting Coverage =largeClaiming Coverage Exemptions Most taxpayers already have qualifying health care coverage, and will simply check a box on their tax return.
This includes coverage from an employer, Health Insurance Marketplace coverage, and government-sponsored programs like Medicare, Medicaid, and CHIP. If you purchased coverage through the Marketplace, you will receive a Form 1095-A, which provides information about your coverage.
- Determine if you have qualifying health care coverage
- Learn more about reporting coverage
- Find out more about the Health Insurance Marketplace
- Learn more about Health Insurance Marketplace Statements (Form 1095-A)
Some taxpayers are exempt from the requirement to have coverage. Most coverage exemptions can be claimed when you file your return. However, some exemptions must first be obtained from the Health Insurance Marketplace.
If you qualify, you will not have to make a shared responsibility payment.
- Find out about the individual shared responsibility provision
- Learn more about coverage exemptions
- Use Form 8965 to claim an exemption when you file your tax return
- Find out more about exemptions obtained through the Health Insurance Marketplace
=largeClaiming and Reconciling Premium Tax Credit =largeMaking the Individual Shared Responsibility Payment You can only claim this credit if you purchased health insurance through the Marketplace.
You must file a federal tax return if you received any advance payments of the premium tax credit to reconcile those payments.
You will use the information on Form 1095-A that is issued by your Marketplace to calculate the credit when you file.
- Determine if you’re eligible for the premium tax credit
- Claim and reconcile the credit on Form 8962
- Learn more about the premium tax credit
If you do not have qualifying coverage or an exemption for each month of the year, you will need to make an individual shared responsibility payment with your return.
In general, the annual payment amount is the greater of a percentage of your household income or a flat dollar amount, but is subject to certain caps.
- Learn about the individual shared responsibility provision
- Determine if you need to make an individual shared responsibility payment
- Learn more about calculating and making a payment
- Find out if your coverage is qualifying coverage
Last edited by Common Sense (2/24/2015 3:52 pm)
“We hold these truths to be self-evident,” former vice president Biden said during a campaign event in Texas on Monday. "All men and women created by — you know, you know, the thing.”