You’ll be required to report your “health insurance status” on your 2014 Taxes
Obamacare aka the Affordable Care Act (ACA) was introduced by President Obama to increase the quality and affordability of health insurance.
Although the changes to government may seem confusing, RapidTax is here to help you through filing your 2014 taxes! The questions below will help you get a better idea of what your tax situation will look like.
1. Did you have Health Insurance in 2014?
The Affordable Care Act will especially affect your 2014 Taxes if you didn’t have health insurance coverage throughout 2014.
You’re safe if you received coverage from one of the following sources;
- federal or state marketplace (Health Insurance Exchange)
- employer-sponsored plan
- private health insurance company
- government program (ie. Medicare or Medicaid)
If you don’t have coverage from one of the sources listed above, the only way you’ll avoid paying extra when filing is to fall within the list of qualified Exemptions. View the complete Exemptions list on the RapidTax blog!
2. Are you Familiar with the New Tax Forms?
Depending on who your health insurance coverage was through, you may receive one of the following forms in the mail;
- Form 1095-A: indicates that you purchased health insurance through your state exchange or the federal Marketplace. This form will indicate your coverage.
- Form 1095-B: indicates that you received insurance from a private insurance company, outside of a state exchange.
- Form 1095-C: indicates that you received insurance through your employer. The form will indicate your coverage.
As part of the Affordable Care Act, employers and private health insurance companies are required to send a 1095-B or 1095-C form starting in 2016. Although the form is not a requirement until next year, you may receive one.
Review the form to review your health insurance information. Next year, you’ll need the Form 1095 when filing your taxes.
3. Will You Receive the Premium Tax Credit?
If you were enrolled in the 2014 Health Care Marketplace, you’re qualified to receive the Premium Tax Credit on your 2014 Tax Return. This Credit will ultimately increase your tax refund amount.
However, just because you were enrolled in Obamacare doesn’t mean you’ll definitely receive the credit. If you underestimated your annual income when applying for the tax subsidy, you may end up owing tax. If you were enrolled and overestimated or didn’t take the subsidy, you’ll receive the Premium Tax Credit.
You definitely won’t be receiving the Premium Tax Credit if you weren’t enrolled in the Health Care Marketplace. Luckily, you won’t end up paying more if you had insurance through a different provider.
4. Do You Know The Easiest Way to Report Insurance on Your 2014 Taxes?
Don’t want to calculate your insurance and tax information yourself? We don’t blame you. Why spend hundreds of dollars on an accountant when you can use RapidTax?
Create an account on RapidTax to file your 2014 taxes. Don’t wait- the IRS will shut down the e-file system on October 15, 2015 to prepare for next tax season.
Photo via OpenSource.com on Flickr
