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;
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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.
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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)
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Once you’re ready to prepare your 2014 taxes, have your Form 1095-A (and any other tax documents) on hand.
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After creating an account on RapidTax, enter your 2014 tax information.
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While entering your 2014 tax information, the RapidTax application will ask you about your 2014 insurance coverage. (This is when you’ll need the 1095-A Form).
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You’ll indicate that you were covered through the Marketplace and will then be asked to provide the information listed on your 1095-A Form.
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Enter the requested health insurance information as it appears on your 1095-A Form.
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If you’re entitled to receive the premium tax credit, your refund total will increase.
Will My Refund Be Larger because I have Obamacare?
Just because you purchased health insurance through the Marketplace, it doesn’t guarantee you’ll receive the Premium Tax Credit. It will depend on your income and the total subsidy applied to your insurance premiums throughout 2014. Here’s what you need to know;
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if you underestimated your 2014 household income upon applying for the tax subsidy through the Marketplace and actually earned more than you projected, you’ll have to pay part of the subsidy back. In other words, your refund amount will decrease.
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if you overestimated your 2014 household income when you applied for the tax subsidy through the health insurance marketplace, you’ll receive the remainder of the subsidy in the form of a refundable credit aka a larger tax refund
No Need to Do Extra Work-RapidTax Will Do it for You!
No need to do the health insurance calculations yourself. You also won’t have to worry about filling out Form 8962 to receive the Premium Tax Credit- the RapidTax application will take care of it!
Report the information listed on your Form 1095-A and e-file your 2014 taxes with RapidTax! Get started and create an account today.
Photo via opensource.com on Flickr
