To help taxpayers understand how their health coverage for 2015 will impact their filing of taxes, the IRS recently issued a new “Health Care Tax Tip”.
While most taxpayers will simply need to check a box on their tax return to indicate they had health coverage for all of 2015, there are a few forms and specific lines on Forms 1040, 1040A, and 1040EZ that relate to the health care law.
Below is a brief overview of the information provided by the IRS:
Form 8965, Health Coverage Exemptions
- Individuals should complete this form if they need to claim a coverage exemption on their return or report a Marketplace-granted coverage exemption.
- The worksheet in the Form 8965 Instructions should be used if an individual needs to calculate the shared responsibility payment.
Form 8962, Premium Tax Credit
- This form will be used to claim the premium tax credit on an individual’s tax return, and to reconcile advance payments of the credit.
Form 1095, Health Care information Forms
- If an individual enrolled in coverage through the Health Insurance Marketplace, they should receive Form 1095-A, Health Insurance Marketplace Statement, which will help complete Form 8962. Individuals are encouraged to wait to file until they receive this form.
- Health coverage providers and employers will generally be responsible for furnishing a Form 1095-B, Health Coverage or Form 1095-C, Employer-Provided Health Insurance Offer and Coverage to individuals. Individuals do not have to wait to receive these forms before your file their tax return.
In addition, the Tax Tip provided by the IRS provides details about which lines on Form 1040, Form 1040-A, and Form 1040-EZ should be filled out relative to premium tax credit, individual shared responsibility payment, or their health coverage.
Additional Information
Please click here to view the full Tax Tip from the IRS.
If you would like additional information that may help your company to address questions from employees regarding the Form 1095-c document, please contact our team. We have sample emails, flyers, and FAQs that you can put to use. Simply give us a call at 781-759-1222.