Did you know that your health coverage may affect your taxes? If anyone in your household enrolled in a Marketplace plan in 2014, you’ll need some new information when you file your federal income taxes.
Here are 5 things to know about health coverage and your taxes:
- Watch your mail for Form 1095-A. It will help you file your 2014 federal taxes. If you enrolled in a Marketplace health plan in 2014, you’ll get this new form in the mail from the Marketplace by early February. This form includes important information like the monthly premiums you paid to your health plan and the amount of any advance payments of the premium tax credit that were paid to your health plan in 2014.
- Your final premium tax credit for 2014 will be computed with your federal income tax return. The amount of your 2014 premium tax credit is based on your final income for the year, which you’ll find out when you complete your taxes. If during the year you used less advance payments of the premium tax credits than you’re eligible for, you’ll get a credit on your tax return. If you took more advance payments than you’re eligible for, you may need to pay the difference with your tax return.
- If you didn’t have health coverage for part of 2014, use Form 8965. If your Marketplace coverage started partway through 2014 and you were uninsured earlier in the year, you’ll need to fill out Form 8965 from the IRS when you file your taxes. This will show you if you qualify for an exemption from paying a fee for the months you didn’t have coverage.
- You may pay a fee with your taxes if you didn’t have health coverage in 2014 and didn’t get an exemption. If you could’ve afforded health coverage in 2014 but chose not to buy it, and you don’t qualify for an exemption, you may need to pay a fee with your federal tax return.
- If you had 2014 health coverage from another source you’ll just need to check a box on your federal income tax form. You won’t get Form 1095-A. Coverage from another source includes coverage from a job, Medicare, Medicaid, or a plan you bought outside the Marketplace.
Need help? For more information about how health coverage will affect your taxes, visit HealthCare.gov/taxes.