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How Will I Prove My Health Insurance Under the Affordable Care Act?

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Under the Affordable Care Act, taxpayers will need to provide information about their health insurance coverage when filing their 2014 taxes in 2015, since most uninsured Americans must have health insurance beginning in 2014 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 at tax-time:

  • When you prepare your taxes you will be asked if you have health insurance. If you already have health insurance there will be a simple check mark on your taxes based on your answer.
  • If you have a plan from the Health Insurance Marketplace, the Marketplace will provide Form 1095-A to you and the IRS with information about your coverage and premium tax credits.
  • 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.
  • If you have job-based coverage, your employer may provide a separate Form 1095-C to you and the IRS with information about your plan and who was covered.
  • Private insurers and self-funded plans may provide each policyholder and the IRS with information summarizing the coverage provided on Form 1095-B.

The IRS has provided a transition period for Forms 1095-B and 1095-C, so these forms are not a requirement for tax year 2014.

And 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.  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.











57 responses to “How Will I Prove My Health Insurance Under the Affordable Care Act?”

  1. I am 81 and have group retirment plan including Medicare, no premium required, my tax form 1040A does not want form SA1099 to be sent, but line 14a shows receipient of SS. I don’t use Trubo, do I check box 38 in 1041A Thank you kindly.

  2. I am currently separated from my husband however not fully divorced. (too expensive) he has me and my kids cover through his employer. Do I still need to buy my own medical coverage to avoid paying a penalty or I should be ok since he has me cover. Please advise.
    Thank you

  3. I will be checking the I have insurance box even though I don’t have insurance. If they want to put a 61 year old lady that makes under 14,000. a year in prison for lying go for it. I will get free lodging & food.

  4. Hello,

    I am 25 years of age and currently under my mothers work insurance. I filed my own taxes, how will or can I prove that I was insured?

  5. Hi i wanted to know if i claim my sisters children. As dependents my sister does not work but they live with me and they have medicad how will i show proof of this

  6. I have health Insurance through my employer. My 22 year old son is not my dependent for tax purposes but is covered under my policy. How will he be able to prove he has coverage?

  7. I Had insurance from Jan. 1 2014 until I was let go from my job on Dec. 22 2014. my insurance was cancelled on the day I was let go. Will a penalty be attached to my refund even though not having insurance now was not my decision?

    • if you go without insurance for 3 consecutive months or longer. The tax penalty will be based on the number of months you go without coverage. You won’t be charged the tax penalty if you are uninsured for a period that occurs for 3 or fewer consecutive months.

  8. Our Family utilizes Christian Healthcare Ministries; any special things we have to do to prove we have coverage? Last year on TurboTax we were asked if we had/have Insurance. To which we answered yes. Same still?

  9. Hello, I had insurance for 10 months through the ACA healthcare marketplace. Then I turned 65 in November and qualified for Medicare. I currently pay Medicare and Medicare supplements monthly. How do I handle this mixed insurance situation on my tax filing in Turbo Tax this year? Thank you.

  10. I am on social security disability. I pay for my medicare supplemental insurance. Social security does take out takes from my check each month. When I file my taxes, will I be able to get any of the money I’ve spent out on medical, prescriptions, hospitalizations?

    • Hi Angela,
      If you are able to itemize your tax deductions and your medical expenses exceed 10% of your adjusted gross income (7.5% if over 65), then you may be able to get a medical expense deduction for your expenses.
      Thank you,
      Lisa Greene-Lewis

  11. How do children that are on their parents insurance prove they are insured? My son is 23 years old & i carry him on my insurance through my work, so his he does not pay for it I do.

    • Hi Ronda,
      Your employer provided insurance will be reported on your W-2 in box 12, if your son’s insurance is included with your employer-provided insurance it will be included there.
      Thank you,
      Lisa Greene-Lewis

    • Hi Robert,
      Your Medicare will be reported on your SSA-1099. TurboTax will ask you if you have a SSA-1099 and ask you to enter the amounts on that form, which will show that you are covered.
      Thank you,
      Lisa Greene-Lewis

  12. I’m a self employed Realtor and would like to know the steps I must take to average out my very good year I had this year–say, over the next several years. I understand that I must pay the tax of the total amt. I made–but is there a way I can average out the income over the next several years??

    • Hi Joseph,
      Since taxes are based on one tax year and tax laws and threshold amounts vary from year to year you would have to use your income over one year and not several. You can average your income over one year when trying to figure out estimated taxes.
      Thank you,
      Lisa Greene-Lewis

  13. My twin 22-year old (today) sons are in the Air National Guard and were on active duty 6 months this year. They’re also college students living at home. How do we account for them with the ACA?

    I’m a disabled veteran and am covered and we have NOT purchased any healthcare plan for my self-employed wife or the family as a whole, and DON’T intend to. Nobody’s been able to answer our question about how the ANG situation is treated — including our elected representative. They just don’t know.

  14. My sons are in the Air National Guard and were on active duty for 6 months in 2014. How is this treated with the ACA?

    As a disabled veteran I’m covered but we haven’t purchased a plan for my self-employed wife or college attending, ANG participating children – both age 21 for most of the year.

    • Hi McChalium,
      You are correct. Thank you for bringing that to our attention. If you have Medicare that will be reported on your Form SSA-1099. TurboTax will ask you if you have Medicare reported on Form SSA-1099 so your taxes will reflect that you were insured.
      Thank you,
      Lisa Greene-Lewis

  15. So those of us who have paid for insurance year after year through our employer doesn’t reap the benefit of a “premium tax credit”??? Thanks Obama!

    • Hi Larry,
      Thank you. We will have to add that in the article. If you have Medicare, it will be reported on Form SSA-1099. TurboTax will ask you if you have that form and for amounts on that form so your tax return will reflect that you are covered.
      Thank you,
      Lisa Greene-Lewis

    • Hi Gary,
      If you are referring to those who are retired and get Medicaid or Medicare, that will be reflected on your Form SSA-1099. TurboTax will ask you if you have that form and for information from the form so that your tax return will reflect that you are covered based on your information entered.
      Thank you,
      Lisa Greene-Lewis

  16. why have you made no remarks about millions of people on Medicare and Medicaid what do they do
    why would you leave out 50 million people

    • Hi Rocky,
      Thank you. We will update our article. If you have Medicare and Medicaid that will be reported on Form SSA-1099. TurboTax will ask you if you have that form and for the information on the form. Your tax return will reflect that you have health insurance based on that information.
      Thank you,
      Lisa Greene-Lewis

  17. TurboTax, kindly do NOT refer to the Affordable Care Act as the informal “Obamacare.” Coming from any professional business it is frankly rude and disingenuous. It identifies your business as a republican-based “person” aimed at derogatorily discrediting the President of the United States in any way it can. It’s not about Obama; it’s about our right-use behavior and conduct. Enough disrespect! Call it as it is properly named: The Affordable Care Act.

    • Hi Richard,
      Yes, everyone will be asked if they have health insurance. If you are on Medicare you will receive a Form SSA-1099, which will indicate your Medicare insurance. TurboTax will ask if you have Form SSA-1099 and information from the form.
      Thank you,
      Lisa Greene-Lewis


    • Hi,
      We just need to inform people about how this impacts their taxes since the requirement to have and report health care on your taxes will begin with your 2014 taxes.
      Thank you,
      Lisa Greene-Lewis

    • Hi Marvin,
      You may also receive Form SSA-1099 that will indicate Medicare. TurboTax will ask you if you received SSA-1099 and have you fill out information from the form.
      Thank you,
      Lisa Greene-Lewis

  19. My understanding is that, if your employer is not above 50 employees, they are not required to provide a 1095-C to employees. How, then, will one provide proof for employer-provided insurance?

    • I think you then just need to fill out the 1095 yourself and put all the necessary info from your insurance on it. That’s my understanding. You can get this form, from turbo tax to fill out.

      • Hi Karen,
        TurboTax will not make you fill out forms. You would fill out information from any 1095-A that you receive if you purchased in the Health Insurance Marketplace. If you have employer provided insurance it may be indicated on your W-2 box 12.
        Thank you,
        Lisa Greene-Lewis

    • Hi Ashley,

      I am a benefits consultant. All employers that provide employer-sponsored insurance must prepare a 1095-C. The requirement that you reference is the Employer Mandate, which states that employers with more than 50 full time equivalents *must* sponsor a benefits plan (or pay a penalty).

      Employers with less than 50 full-time equivalents do not *have* to offer benefits. But if they choose to do so, then they are still required to provide you with a 1095-C.

      Hope that helps,

      • Hi,
        Employers and insurance providers that were required to supply forms 1095-B and 1095-C were given a break for 2015 and are not required to supply the two forms until 2016 for 2015 taxes.
        Thank you,
        Lisa Greene-Lewis

    • line 61 on the 1040 tax form is a simple check box. If you’ve had coverage the whole year then check it. no proof appears to be required at all. The IRS commissioner told me the IRS is viewing the process as “an honor system” and is asking that people fill it out as accurately as possible. The IRS is not currently capable of and will not be processing 1095-Bs or 1095-Cs even if they were generated this year. If the employer does not send in a 1095-C there is no way to audit your response anyway.

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