Start Planning Early: New Affordable Care Act Forms You May Need to File Your 2014 Taxes

Health Care

Each year, there are a few common tax forms you can expect to get in the mail, like your W-2 or 1099, which you’ll need to file your taxes.

When you file your 2014 taxes in 2015, you may notice a couple new tax forms to help you verify your health coverage as part of provisions of the Affordable Care Act (ACA).

Here’s an explanation of the new tax forms you may see at tax-time:

Form 1095-A: If you purchase health insurance through the Health Insurance Marketplace, you will receive Form 1095-A, which will show details of your insurance coverage such as the effective date, amount of the premium, and the advance premium tax credit or subsidy.

Form 1095-B or 1095-C: Although not required for 2014 taxes, you may also receive one of these forms to report insurance coverage from agencies outside the Marketplace and from your employer. The IRS has provided a transition period for Form 1095-B and 1095-C, so these will not be required for tax year 2014.

Forms 1095-A, 1095-B, and 1095-C are source documents you will use to report your insurance coverage on your tax return to comply with the Affordable Care Act.

Form 8965: Starting in 2015 (for your 2014 tax return), if you didn’t have health insurance coverage in 2014 and qualify for an exemption from purchasing health insurance and a tax penalty, your tax return will include — Reporting of Exemptions From Coverage — to report the exemption certificate number you received from the Marketplace.

There are a few exemptions, like your income does not meet the IRS filing requirement, that can be applied for at the time you are filing your taxes, however most exemptions should be applied for in the Marketplace before 2015 since you have to receive approval and report the exemption certificate number on your taxes.

Form 8962: If you purchased health insurance in the Health Insurance Marketplace and received a premium tax credit in 2014, information about your advance premium tax credit will be reported and the actual premium tax credit will be determined on form 8962.

Both Form 8965 and Form 8962 will be generated and attached to your tax return.

You were eligible for the premium tax credit if you met all the following criteria:

  • You must get health insurance through the Health Insurance Marketplace;
  • Are ineligible for coverage through an employer or government plan;
  • Are within certain income limits;
  • Do not file a Married Filing Separately tax return (unless you meet a specific criteria, which allows certain victims of domestic abuse to claim the premium tax credit using the Married Filing Separately filing status for the 2014 calendar year);
  • Cannot be claimed as a dependent by another person.

If you were eligible for the premium tax credit, you could have chosen to:

  • Get It Now: have some or all of the estimated credit paid in advance directly to your insurance company to lower what you pay out-of-pocket for your monthly premiums; or
  • Get It Later: wait to get all of the credit when you file your tax return. This may either increase your tax refund or lower your balance due.

As with all tax laws, TurboTax is up-to-date with the latest tax law changes.  If you have more questions about the Affordable Care Act and how it impacts you and your taxes, you can visit TurboTax Health to get answers.

Comments (4) Leave your comment

  1. What About those who have were eligible for the state programs that are covered such as Medicaid? Do we have to report as well?

  2. for tax planning I need to estimate my ACA subsidy. Will Turbotax have a calculator available before January 1st to aid tax planning?

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