Health Care Law & Your Tax Return

by Joy Johnson on January 6, 2015

Affordable Care Act & Taxes
~ At a Glance

IF YOU…

THEN YOU…

Have a tax return that is affected by any of the Affordable Care Act tax provisions  Should consider filing electronically using one of the many e-file options.
Enrolled in health insurance through the Marketplace Should receive a Form 1095-A Health Insurance Marketplace Statement from the Marketplace
Received a Form 1095-A, Health Insurance Marketplace Statement, showing you received the benefit of advance payments of the premium tax credit in 20  Must file a tax return in 2015 and compare the advance payments with the amount of thepremium tax credit on your return – this is called ‘reconciling the advance payments of the credit with the credit allowed’
Need to reconcile the advance payments of the credit with the credit allowed  Make the calculations using IRS Form 8962Premium Tax Credit (PTC)
Must repay any excess advance payments of the premium tax credit  Must report the information on line 46 Form 1040 or line 29 of Form1040-A, and cannot file Form 1040-EZ
Are claiming the premium tax credit and did not receive the benefit of advance payments of the premium tax credit  Must file a tax return and IRS Form 8962, Premium Tax Credit (PTC)
 Did not receive a Form 1095-A, Healthcare Insurance Marketplace Statement, from the Marketplace Should contact the state or federal Marketplace through which you enrolled
 And everyone in your tax household had health coverage for the entire year  Will simply check the box on line 61 of Form 1040,  line 38 of Form 1040-A, or line 11 of Form 1040-EZ
 Are claiming an exemption from the requirement to have health coverage for anyone on your tax return  Will complete Form 8965, Health Coverage Exemptions, and submit it with your tax return
 Still need to obtain a religious conscience exemption or a hardship exemption that can only be granted by the Marketplace  Should file an application with the Marketplace
 Obtained an exemption from the Marketplace, and received your unique Exemption Certificate Number  Will enter the Exemption Certificate Number in Part I of Form 8965, Health Coverage Exemptions, and submit the form with your return
 Applied for an exemption from the Marketplace, but do not currently have an Exemption Certificate Number  Will enter ‘PENDING’ in  Part I of Form 8965Health Coverage Exemptions, and submit the form with your return
 Are claiming an exemption that can be granted only from the IRS  Will not need an Exemption Certificate Number, but will complete Parts II and III ofForm 8965, Health Coverage Exemptions, and submit the form with your return
 Are able to obtain the exemption from either the IRS or the Marketplace  Should obtain the exemption from the IRS by completing Part II and III of Form 8965,Health Coverage Exemptions, and attach this form to your federal tax return when you file
 Are making a shared responsibility payment  Will enter the payment amount on line 61 of Form 1040, line 38 of Form 1040-A, or line 11 of Form 1040-EZ

From the IRS website.


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