Ensure you have the correct tax forms to prove your health care in 2014!

HWith the advent of fresh air and flowers in bloom this spring, comes with it tax time. And this year, your health insurance will play a greater part in your tax return than ever before. For the first time you’ll be asked to verify that you have health insurance coverage, and your tax return will involve calculating penalties, tax credits, and advanced tax credit reconciliation.

When you initially enrolled in a plan, your Personal Benefits Consultant told you whether or not you qualified for premium subsidies, or assistance from the government to assist in paying for your health insurance premiums. You have a choice to receive these subsidies up front (by lowering your monthly premium), or to be received at the end of the year as a tax credit.

IRS Form 1095A will be sent to you if you purchased health insurance for 2014 through the Health Insurance Marketplace. Its primary purpose is to prove that you obtained a health plan through the Marketplace. It is also the first step in ensuring you receive the your Premium Tax Credits (PTC). The information on that form is then used to complete form Form 8962A – Premium Tax Credits (PTC).

Important Things to Know

> The 1095A should have been sent to you in the mail from the Health Marketplace by Connect for Health Colorado. It is also possible to download this form from “My Documents” on their website.

> If you filed your 2014 taxes before you received this form, it is likely that you will need to file an addendum to your return to show proof of your health insurance for the year.

> You, and anyone in your household that enrolled in a plan through the Marketplace will receive this form and is required to complete it.

What is the Purpose of the 1095A?

Aside from being the first step in ensuring you receive the proper tax credits, this form is also essential to completing the Form 8962. It also verifies your income. Therefore if you received a higher premium tax credit than you were supposed to you will owe the difference. If you received too little in premium subsidies, you will receive the difference in your refund. Detailed further below is what the 1095 will offer you.

> The amount of receive in premium tax credits.

> The amount of Advanced Premium Tax Credits.

> The cost of the “benchmark” premium available to you each month, or Second Lowest Cost Silver Plan (SLCSP) in your area. The price of this plan in 2014 is used to help determine the Tax Credit you get.

Your Personal Benefits Consultant can answer basic questions about these forms, however we cannot provide legal or tax advice.

How has your experience been dealing with your income taxes and health insurance this year? Let me know with your comments below.

  Date posted: Wednesday, March 11th, 2015
Category: Health Care Reform, Health Insurance

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