Monday, December 8, 2014

ACA: Changes You Need to Know Regarding Your 2014 Tax Return

As of January 1, 2014, most Americans are required to have minimum essential health insurance. For most taxpayers, this means little or no changes to your taxes. If you had employer-provided insurance for most of 2014, or you purchased coverage through a private exchange or directly from an insurance company, the ACA's insurance mandate won't impact your taxes. (Note: You may receive IRS Form 1095-B and/or 1095-C from your employer or insurance company in January 2015, but you don't need to report that info on this year's tax return.) 

If you purchased insurance for 2014 from a Marketplace, you'll receive IRS Form 1095-A in January 2015. If you received the advanced premium credit in 2014, that information will be on your Form 1095-A. You may receive a bigger tax credit or have to pay back some or all of the credit if your actual income is more or less than the amount you estimated at the time you purchased coverage from your Marketplace. 

If you did not have insurance for three or more months in 2014, you may be subject to a penalty (also known as an individual shared responsibility payment) that you must pay when filing your taxes. The penalty is 1% of your 2014 income or $95 per adult – whichever is higher – and $47.50 per uninsured dependent under the age of 18, up to $285 total per family.

For more information:
IRS ACA link http://www.irs.gov/Affordable-Care-Act

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