How Will I Prove My Health Insurance on My Taxes?

Affordable Care Act (ACA), Health Care Series.

Under the Affordable Care Act, taxpayers will need to provide information about their health insurance coverage when filing their 2015 taxes, since most uninsured Americans must have health insurance beginning in 2016 or face a tax penalty.

So how can you prove you have health insurance to avoid a tax penalty? Here’s what you need to know when you sit down to file:

  • Get the 411 on the 1095 forms:
    • 1095-A: If you have a plan through the Marketplace you will receive this form. You will need this information to file your taxes, but luckily reporting your insurance information is as simple as entering your W-2 with TurboTax.
    • 1095-B: This is a new form that may come from your health insurance provider if you bought directly from the insurance company, a government plan like Medicaid or from your employer if your workplace has less than 50 employees. Most people actually wont need this form to file taxes. Your insurance provider or employer will provide proof to the IRS that coverage was offered – all you need to do is check a box on your tax return if were. If you receive the form, check it for accuracy and keep it for your records.
    • 1095-C: This form is very similar to 1095-B. It’s sent by employers with more than 50 full-time workers. Just like with 1095-B, if you know your coverage status, you won’t need this form to file your taxes. Check it for accuracy and save it for your records – all you will need to do in TurboTax is check the box that says you were covered.
  • Lastly, if you think you qualify for an exemption from purchasing health insurance, you may need to provide documentation to substantiate your claim.  A few of the exemptions are through your tax return, but a majority require you to apply for an exemption certificate number (ECN).  TurboTax Health can help you find out if you may be exempt from the tax penalty.

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.

Note: This blog post was updated from earlier post to reflect changes for TY 15.

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