IRS Health Care Tax Tip 2015-06, January 29, 2015
Nearly everyone is affected by the Affordable Care Act and will need to do something new when filing their taxes this year. The following chart will help you better understand how the health care law affects you and everyone on your return. This chart is also available on IRS.gov/aca.
To help navigate these changes, taxpayers and their tax professionals should consider filing returns electronically. Using tax preparation software is the best and simplest way to file a complete and accurate tax return as it guides individuals and tax preparers through the process and does all the math. There are a variety of electronic filing options, including free volunteer assistance, IRS Free File for taxpayers who qualify, commercial software, and professional assistance.
|Are U.S. citizens or are non-U.S. citizens living in the United States||Must have qualifying health care coverage, qualify for a health coverage exemption, or make a payment when you file your tax return|
|Have health coverage through an employer or under a government program such as Medicare, Medicaid and coverage for veterans for the entire year||Just have to check a box on your Form 1040 series return and do not read any further|
|Do not have coverage for any month of the year||Should check the instructions to Form 8965 to see if you are eligible for an exemption|
|Are eligible for an exemption from coverage for a month||Are not responsible for making an Individual Shared Responsibility payment for that month, and must claim the exemption or report an exemption already obtained from the Marketplace by completing Form 8965, Health Coverage Exemptions, and submitting it with your tax return|
|Do not have coverage and are not eligible for an exemption from coverage for any month of the year||Are responsible for making an individual shared responsibility payment when you file your return|
|Are responsible for making an individual shared responsibility payment||Will report it on your tax return and make the payment with your taxes|
|Received the benefit of more advance payments of the premium tax credit than the amount of credit for which you qualify||Will repay the amount in excess of the credit you are allowed subject to a repayment cap|
|Need qualifying health care coverage for 2015||Can enroll in health insurance through the Health Insurance Marketplace (Marketplace) during the open enrollment period that runs through Feb. 15, 2015; once open enrollment ends, individuals can enroll only if they qualify under special enrollment provisions|
|Enroll in health insurance through the Marketplace for yourself or someone else on your tax return||Might be eligible for the premium tax credit|
|Did not enroll in health insurance from the Marketplace for yourself or anyone else on your tax return||Cannot claim the premium tax credit|
|Or another person on your tax return who is enrolled in coverage through the Marketplace is not eligible for health care coverage through your employer or under a government program||Might be eligible for the premium tax credit|
|Are eligible for the premium tax credit||Can choose to get premium assistance now to lower your monthly payments or get all the benefit of the credit when you claim it on your tax return|
|Choose to get premium assistance now||Will have payments sent on your behalf to your insurance provider. These payments are called advance payments of the premium tax credit|
|Get the benefit of advance payments of the premium tax credit and experience a significant life change, such as a change in income or marital status||Report these changes in circumstances to the Marketplace when they happen|
|Get the benefit of advance payments of the premium tax credit||Will report the payments on your tax return and reconcile the amount of the payments with the amount of credit for which you are eligible|
Find out more about the tax-related provisions of the health care law at IRS.gov/aca.
Find out more about the health care options at HealthCare.gov.
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