Below is a brief summary of the new filing requirements related to ObamaCare (the “Affordable Care Act”). These requirements apply to everyone, regardless of how you purchase your health insurance.
1. If you obtained healthcare coverage through the ObamaCare Marketplace last year, you will need Form 1095-A to file your 2014 tax returns. This form will be issued by the ObamaCare prior to January 31st.
2. If you didn’t have the “minimum essential coverage” or an exemption as required by ObamaCare, you will owe a penalty when you file your Federal income tax return. This penalty will be based on your modified adjusted gross income for each full month you didn’t have health insurance.
3. If you had private health insurance, you will need to indicate on your 2014 tax return whether your coverage met the minimum requirements set by ObamaCare.
Form 1095-A will report the total monthly health insurance premiums you paid to the insurance company you selected through the Marketplace. It will also detail the advance payments of the premium tax credit that were paid directly to your insurance company.
If Form 1095-A is lost, incorrect, or never shows up, taxpayers must contact their Marketplace directly. Taxpayers can get information on how to reach the Marketplace on HealthCare.gov and IRS.gov/aca.
Think of this new tax form, Form 1095-A, as similar to a W-2 that you’d get from an employer or a 1099 that you’d get from a bank. Much like those forms, the Marketplace reports the 1095-A information to the IRS. This means that your tax return must match the information reported on the 1095-A.
The IRS will begin accepting 2014 tax returns on January 20, 2015. Be sure to keep track of all of your W-2s, 1099s, year-end mortgage statements, and brokerage account statements as they arrive over the next few weeks.