Marketplace Insurance and your Taxes

Your taxes may be affected by your health coverage through the marketplace under the affordable care act/Obamacare. You will require some new information when you file your federal income taxes if anyone of household members is enrolled in a health plan under Obamacare. You can apply for an exemption if you didn’t have coverage for three or more months in 2014, otherwise, you may have to pay a fee for not having coverage. To know more about it, you may visit the healthcare website.

Form 1095-A for filing your federal taxes

You’ll get form 1095-A in the mail from the marketplace if you enroll in a health plan through the marketplace. If you have health coverage through Medicare, Medicaid, or the Children’s Health Insurance Program (CHIP), you will not be getting this form. Information regarding any of your household members enrolled in a health plan through the marketplace is included in form 1095-A. It also includes information about the following things:

  • The monthly premiums paid for the health plan.
  • A premium used to compute your premium tax credit also known as a “benchmark” premium.
  • The payments that help you to lower your monthly premium payments.

Your final premium tax credit and federal income tax return

You provided information on your income about your income and family size when you applied for health coverage through the marketplace. The amount of premium tax credit you are eligible for is determined by this information. You can lower what you pay in monthly premiums by using “advance payments” of this premium tax credit. It is when you file your federal income tax return that the actual amount of your premium tax credit is computed.

You can figure out this amount by seeking help from your tax preparer or by completing and attaching Form 8962 premium tax credit form to your tax return while filing. You’ll get the difference as credit on your tax return if the actual premium tax credit you’re eligible for is more than the amount you used throughout the year.

You may need to pay the difference with your tax return if the actual amount of your credit is less than the advance payments you used. When you file your taxes, you might still qualify for a premium tax credit if you didn’t get any help to lower the amount you paid for your health plan premiums during 2014.To compute the amount to report on your tax return and if you qualify for a premium tax credit, use Form 8962.

Form 8965 and health Coverage

Use Form 8965 if you didn’t have health coverage for part of 2014. If you were uninsured earlier in the year 2014 and if your Marketplace coverage started somewhere in the middle of 2014, then you’ll be required to fill out form 8965 from the IRS when filing taxes. Whether you are exempt or not from paying a fee for the months you didn’t have coverage under the affordable care act/Obamacare will be shown by this.

If you want to know more about how you marketplace coverage will affect your taxes you may visit the healthcare website.

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