Things to Know About Health Insurance and Your Taxes

Published on January 9, 2015

Did you realize that your well being protection might have an effect on your taxes? If anybody in your family enrolled in a Marketplace plan in 2014, you’ll want some new data if you file your federal earnings taxes.

Here are 5 issues to learn about well being protection and your taxes:

1. Watch your mail for Form 1095-A. It will aid you file your 2014 federal taxes. If you enrolled in a Marketplace well being plan in 2014, you’ll get this new type within the mail from the Marketplace by early February. This type contains important data just like the month-to-month premiums you paid to your well being plan and the quantity of any advance funds of the premium tax credit score that had been paid to your well being plan in 2014.
2. Your remaining premium tax credit score for 2014 shall be computed together with your federal earnings tax return. The quantity of your 2014 premium tax credit score relies in your remaining earnings for the 12 months, which you’ll discover out if you full your taxes. If throughout the 12 months you used much less advance funds of the premium tax credit than you’re eligible for, you’ll get a credit score in your tax return. If you took extra advance funds than you’re eligible for, you might have to pay the distinction together with your tax return.
3. If you didn’t have well being protection for a part of 2014, use Form 8965. If your Marketplace protection began partway by 2014 and also you had been uninsured earlier within the 12 months, you’ll have to fill out Form 8965 from the IRS if you file your taxes. This will present you in the event you qualify for an exemption from paying a charge for the months you didn’t have protection.
4. You might pay a charge together with your taxes in the event you didn’t have well being protection in 2014 and didn’t get an exemption. If you would’ve afforded well being protection in 2014 however selected to not purchase it, and also you don’t qualify for an exemption, you might have to pay a charge together with your federal tax return.
5. If you had 2014 well being protection from one other supply you’ll simply have to test a field in your federal earnings tax type. You gained’t get Form 1095-A. Coverage from one other supply contains protection from a job, Medicare, Medicaid, or a plan you acquire outdoors the Marketplace.

Need assist? For extra details about how well being protection will have an effect on your taxes, go to HealthCare.gov/taxes.