Tax returns will look a little different this year.
This is the first year that consumers will have to mark on their returns whether they had health insurance in 2014. People who purchased coverage via an online exchange created by the Affordable Care Act, or did not enroll in any type of coverage, will have to take some additional steps to file their taxes.
“For the vast majority of Americans, tax filing under the Affordable Care Act will be as simple as checking a box to show they had health coverage all year,” treasury secretary Jacob Lew said in a news release. “A fraction of taxpayers will take different steps, like claiming an exemption if they could not afford insurance or ensuring they received the correct amount of financial assistance. A smaller fraction of taxpayers will pay a fee if they made a choice to not obtain coverage they could afford.”
Consumers with coverage they got through an online marketplace will receive in the mail a new tax form — Form 1095-A — that they will use to reconcile their upfront financial assistance. While those who can afford to buy health insurance and choose not to will have to pay a fee, individuals who cannot afford coverage or meet other conditions can receive an exemption.
Answers to common questions can be found at www.irs.gov/ACA or www.healthcare.gov/taxes. The IRS and the U.S. Department of Health and Human Services will also contact via phone, text message and email those with health insurance purchased from an exchange with personalized information relevant to their tax status. Those most likely to be contacted are those who received a subsidy to help pay for their insurance, the HHS said.
Agency partnerships with community organizations, nonprofits and navigators who guided people purchasing insurance from an exchange will round out the outreach efforts. The IRS and HHS will also work with national tax preparation firms.
Date: January 10, 2015