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I’m Enrolled in Obamacare Marketplace- How Do I Report it On My Taxes?

Enrolled in the Health Insurance Marketplace? Here’s how you’ll report your coverage on your 2014 Taxes

Obamacare – also known as the Affordable Care Act, or the ACA – is a law enacted to ensure that all Americans can afford health insurance.

If you enrolled in the Obamacare Marketplace, you’ll need to report it on your 2014 Tax Return. The information you report will directly impact your tax refund.

Below, you’ll find out how to report your health care insurance that you purchased through the marketplace on your 2014 taxes.

Reporting Obamacare on 2014 Tax Return

If you purchased your health care insurance through the marketplace for 2014, refer to the following steps;

  1. By the end of January 2015, you’ll receive a Form 1095-A in the mail. Don’t throw this form away! You’ll need it in order to complete your 2014 tax return.

  2. Look over the Form 1095-A. The following information will be reported;

  • effective date
  • the total amount of your premium through the Health Insurance Marketplace
  • the total premium assistance you received (aka the advanced payments of the premium tax credit paid directly to your insurance company to lower your out-of-pocket monthly premiums)

  1. Once you’re ready to prepare your 2014 taxes, have your Form 1095-A (and any other tax documents) on hand. Continue reading “I’m Enrolled in Obamacare Marketplace- How Do I Report it On My Taxes?”

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Obamacare & Your 2014 Tax Return

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;

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!  Continue reading “Obamacare & Your 2014 Tax Return”

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8 Reasons Why Filing Separately May be Right For You

Depending on your situation, Married Filing Separately could actually be the right filing status for you

Whether you’ve been married for decades or recently tied the knot, you probably share just about everything with your spouse. Bills, chores, children (or maybe just a pet), a house, the list of what couples share goes on and on.

Should what’s mine is yours, and what’s yours is mine also apply to your tax return?

For most couples, filing jointly means more tax incentives. However, this filing status isn’t for everyone. In fact, there’s reasons why filing separately may be a better idea.

When it’s a Good Idea to Choose Married Filing Separately

In most cases, you’ll find that filing a joint tax return ends up saving you and your spouse money. However, there are certain situations that when filing separately ends up being the better option. Below are eight reasons to file separately;

 1. You have a large amount of Medical Expenses:   In order to qualify to deduct medical expenses, they have to total more than 10% of your Adjusted Gross Income (AGI). That means, if your filing jointly and your Adjusted Gross Income as a couple  is $110,000, then the total of your medical expenses has to be at least $11,000. However, if your AGI is $40,000, and your spouse’s is $70,000, then when married filing separately, you could deduct your medical expenses as long as they  are at least $4000.

2. You’re Reporting a Long List of Employee Business Expenses: Like medical expenses, qualifications to report employee business expenses, such as mileage on your tax return is directly linked to your income. To deduct employee business expenses, they must total at least 2% of your income. In other words, this 2% will be a much larger number when taking into account your spouse’s income in addition to your own. Continue reading “8 Reasons Why Filing Separately May be Right For You”