Watch for Important NEW Tax Reporting Forms

By March 31, 2016 anyone covered by qualified health care for any month during 2015 should receive a Form 1095-A; or Form 1095-B or Form 1095-C.  These forms are due by January 31, 2017 for 2016 coverage.  

By January 31, 2015 anyone who has purchased health insurance through an exchange(Obamacare) for any part of 2014, should receive a new tax reporting form in the mail, Form 1095-A.  

If you acquire health insurance from another source (e.g.: your employer; or purchase it yourself directly from the insurance company) you will NOT receive Form 1095-A.  You MAYreceive either Form 1095-B or 1095-C; but these additional two forms are not mandatory for 2014 health coverage.  If you do receive one or more of these forms make sure that you bring the form(s) to your tax return preparer at the time of your appointment.

If you are supposed to receive Form 1095-A, it is VITAL to the correct preparation of your 2014 income tax return.  DO NOT LOSE THIS FORM.  Make sure you bring this form to your tax return preparer at the time of your appointment.  You may not be able to file your tax return until you have access to that form.

Remember – only those taxpayers who purchased health insurance through an exchange have any possibility of receiving or having already received a “premium tax credit.”  This credit simply does not apply to health insurance acquired through your employer or purchased directly from the insurance company.

Remember also that if you do not meet one of the exemption requirements, you may be subject to a tax penalty for not having had “minimum essential coverage” for yourself or any of your dependents during 2014.  The penalty may be as low as $8 for one single adult with low or moderate income subject to the penalty for only one month ($95 for the whole year), to as high as $2,448 per person for very high income family units.

New for 2014 taxes (and for all years into the future), if you acquired health insurance through an exchange, your tax preparer will need income information for every dependent that you claim on your tax return in order to properly compute credits and/or penalties.