Wednesday, February 10, 2016

Premium Credits, Proof of Insurance, and Taxes

Many people are now preparing their tax returns and may be confused about how to reconcile or claim their premium tax credits.  This page from HealthCare.gov will help consumers figure out how do so.
 
Also check out a new blog post (in English or Spanish) from Marketplace CEO Kevin Counihan, which addresses what people with different health coverage situations need to know as they prepare for the tax season.
 
Click here to view the IRS Q&A that offers more about new tax forms related to the health care law, including when consumers will receive these forms, how they should use them, and who will provide them.
 
More detail. Consumers who received advanced premium tax credits (APTCs), will get a Form 1095-A from the Marketplace. (CMS recently updated its translation of the Spanish Form 1095-A and instructions for using the form.) Consumers must use this form to complete Form 8962 when they file their taxes. These forms allow consumers to reconcile the total APTC they received during 2015 with the amount of premium tax credit (PTC)for which they are eligible based on their final 2015 income and household information. Consumers expecting to receive a Form 1095-A should wait to file their 2015 income tax return until they receive that form.
 
This page will help consumers figure out the premium tax credit they were entitled to, which is based on the second-lowest-cost Silver plan available to them. That page will also help them figure out whether they qualify for an affordability exemption from the requirement to have health coverage. In order to determine eligibility for an exemption, they will need to complete IRS Form 8965, which requires finding out the premiums for both:
  • the lowest cost Bronze plan available to their family
  • the second lowest cost Silver plan available to their family
This year, some consumers who have health coverage through the Marketplace will also receive a Form 1095-B or 1095-C, if they or members of their household had coverage in 2015 through other programs or plans outside of the Marketplace. It is not necessary to wait for Forms 1095-B or 1095-C in order to file their taxes.
 
Individuals who have questions about a Form 1095-B or 1095-C should contact the entity that provided them with the form.
                         

No comments: