2015 is the first year health care information for the Affordable Care Act needs to be entered on the tax return. This change will affect almost all taxpayers. Here are a few things you need to know. 1) If you had 12 months of health insurance through an employer, Cobra plan, government or that you bought yourself all you need to do is mark “yes” on the health care question on the 1040. 2.) If you bought your insurance through the Marketplace, you will receive the IRS 1095A- Health Insurance Marketplace Statement. This form should arrive by early February, and you will need it to help you determine if, and how much of a Premium Tax Credit you could claim on your return. You can only claim the credit if you bought insurance through the Marketplace. Be sure to check the information on the 1095A against your own records to be sure it is correct. 3.) What if you did not have health insurance for three or more months of the year? If so, you will need to fill out an IRS form 8965”Individual Shared Responsibility Provision” This is a fancy term for additional tax. If this is your situation, you may want to check with a tax professional for guidance. Whenever something new appears on the tax form, there are problems. There will probably be problems with the debut of ACA on the tax return. Hopefully all of us will be able to be patient and gentle during this stressful time. Mary Lawless, EA Tax Team, 651-343-0234
