Every year tax forms come to your mailbox, such as W2s and 1099s. However, now you can add some new forms to your list. In 2015, there are tax forms that are going to have to be used to enable you to verify that you have health coverage in compliance with the ACA.
Tax forms to expect
1095 A – If your health insurance was purchased via the Health Insurance Marketplace, expect this form. It is going to show the particulars of your plan, including when it went into effect, your premium amount, and the advance premium tax credit or subsidy.
1095 B or 1095 C – This is not mandatory for your 2014 taxes yet you may receive this form to report coverage for agencies other than the Marketplace, such as your boss. The Internal Revenue Service has granted a conversion period so you will not have to worry about doing anything with these forms for your 2014 taxes.
NOTE: All three of the above-mentioned documents are source forms, which are used to report coverage when you file your federal tax return in compliance with the ACA.
8965 – If you did not have insurance, and qualify for an exemption from purchasing and a tax penalty, you will need this form so you can report the certificate number provided to you.
One exemption would be your income not meeting the filing requirement. However, do not wait until 2015 to apply, you have to be approved and have the certificate number when you file your taxes.
8962 – If your coverage came through the Marketplace and you received a premium tax credit in 2014, the information regarding your advance premium tax credit and the actual credit is determined on this form.
NOTE: Both of these forms have to be included with your federal taxes.
Determining If you are qualified for the Premium Tax Credit
- Your health insurance came through the Marketplace
- You did not qualify for an company or administration plan
- Your income is within a certain limit
- Your filing status is not Married Filing Separately (this is okay if you are a victim of domestic violence during the tax year)
- Your are not classified as a dependent
If you are qualified for the Premium Tax Credit, you can
- Get it now – This means you will get all or some of the estimated credit paid in advance to your insurance company, which lowers the amount of money you have to pay.
- Get it later – This means you will not get the credit until your federal taxes have been filed. This could help you receive a larger tax fund or pay less money back to the IRS.
Keep in mind, like all of the other tax laws, these laws can change. If you file with Turbo Tax 2015, you can be confident knowing that they know the newest tax regulations. For additional questions, feel free to stop by Turbo Tax Health, to have your questions answered. Turbo Tax does everything in their power to insure you get the largest refund possible.