By A.J. Gross, C.P.A., E.A.
Obamacare has added a new wrinkle this According to IRS Commissioner John Koskinen, the 2015 tax filing season “will be one of the most complicated filing seasons we’ve ever had.” One of those complications is the reporting required for Obamacare. There are several new tax forms related to Obamacare you may have to fill out this tax season: Form 1095-A, Form 8962, and Form 8965. These forms can be complicated and may increase the cost to get your taxes prepared.
You don’t have to worry about the new You can check a box on the tax return titled “Health Care: individual responsibility. Full-year coverage.” You are done, no complication.
Form 1095-A: The IRS will provide all taxpayers that purchased health insurance through the Marketplace Form 1095-A, Health Insurance Marketplace Statement. The form provides the dates of coverage, total amount of the monthly premiums for your insurance plan, information you may use to determine the amount of your premium tax credit, and any amounts of advance payments of the premium tax credit. This form should be provided to your tax preparer.
Form 8962, Premium Tax Credit (PTC): Taxpayers that qualify for the Premium Tax Credit must include this form with their tax return. The purpose of Form 8962 is to determine the amount of premium tax credit you should received due to purchasing health insurance through the Marketplace.
You may have received the Premium Tax If you did, the amount of Premium Tax Credit you received was likely based on the income you earned in 2013 or early 2014. The income you actually earned in 2014 may be different. As a result, Form 8962 will determine whether you qualify for additional tax credits because your income decreased or you must pay some of the tax credits back because your income increased.
Form 8965, Health Coverage All individuals must have health care coverage. Taxpayers that didn’t have full health care coverage will pay a tax penalty. However, you may qualify for an exemption. Form 8965 is used to report the reason why you are exempt from purchasing health care coverage. Reasons for qualifying for an exemption include hardship, coverage is unaffordable, members of certain religious sects and more. You can go to www.healthcare.gov for more information on qualifying for an exemption.
A.J. Gross, C.P.A., E.A. is President of ALG Tax Solutions. A.J. Gross can be contacted at AJGross@algtaxsolutions.com or www.ALGTaxSolutions.com.
This column was printed in the February 22, 2015 - March 7, 2015 edition.