Health Insurance and your Taxes
|When filing your 2014 federal income taxes, all you have to do is check a new box to show you had health insurance coverage in 2014 — so you don’t have to pay a tax penalty.Tax software programs may tell you that you that your health insurer will be sending you a form to submit with your taxes to show proof you had coverage. But, for 2014 tax filing you do NOT need to submit a form. And most carriers will NOT be sending you a form this year. (Next year, for your 2015 taxes a form will be required.)|
If you already have health insurance through your employer, a individual health plan, or under a government program (Medicare, Medicaid, or veteran coverage) for the entire year, you only have to check a box on your tax return (1040-EZ, 1040-A, or 1040) showing that you had health insurance for the year.
Most all Major Medical health plans will meet the minimum essential coverage as defined by the Affordable Care Act. The minimum essential coverage includes plans for individual health policies, health insurance purchased on the Health Insurance Marketplace, job-based coverage, Medicare, Medicaid, CHIP, TRICARE and others.
The following forms will be used to report health insurance coverage beginning with your 2014 tax return:
- Form 1095-A – Health Insurance Marketplace Statement – You will receive this form if you purchased health insurance via the Health Insurance Marketplace exchange in 2014. It will provide information for you if you need to complete Form 8962 for the Premium Tax Credit. If you or your family members enrolled in more than one health plan via the Marketplace, you will receive a Form 1095-A for each policy. A copy of each Form 1095-A will also be sent to the IRS.
- Form 1095-B – Health Coverage – This form is provided by your insurance provider and will have the information needed to report on your tax return that you, your spouse, and any dependents, had qualifying health insurance coverage for some of the year or for the whole year.
- Form 1095-C – Employer-Provided Health Insurance Offer and Coverage – This form will be provided to you by your employer and contains information about the health coverage offered to you by your employer. There was a delay in the large employer mandate to provide health insurance coverage so if you do not receive this form from your employer, check with your employer’s benefits department.
- Form 8962 – Premium Tax Credit – This form will be prepared for you when you prepare your return on efile.com if you purchased health insurance through the Marketplace and you are eligible for the Premium Tax Credit.
- Form 8965 – This form will need to be prepared by you if you are claiming that you are exempt from health care coverage.