READER'S ROCK LIFESTYLE MAGAZINE VOL 2 ISSUE 4 NOVEMBER 2014 VOL 2 ISSUE 5 DECEMBER 2014 | Page 66
What You Need To Know About
Taxes And Health Insurance
health
insurance.
Requireme
nts for the
credit
include:
(NAPSI)—In the first year that
most Americans were required to
have health insurance, more than
8 million individuals got
insurance through the federal or a
state-sponsored marketplace.
If you can count yourself among
those 8 million plus with
marketplace insurance for any part
of 2014, you’re required to file a
federal income tax return and
report some simple information on
your return.
“Your marketplace will send you
Form 1095-A, Health Insurance
Marketplace Statement, by
January 31, 2015,” said Jessi
Dolmage of TaxACT. “When
your tax program asks for it,
simply enter the information on
the form. The program will do the
necessary calculations and
complete your tax forms.”
• You are
ineligible
for such
governme
nt programs as Medicare,
Medicaid or CHIP.
• You do not have employersponsored insurance or the lowestpriced, self-covered plan meeting
minimum essential requirements
offered by your employer costs
more than 9.5 percent of your
annual household income.
• Your annual household income
is 100 to 400 percent of the
federal poverty level. For the 2014
credit, that’s $11,490 to $45,960
for an individual. (Hawaii and
Alaska residents are subject to
different amounts.)
• You cannot be claimed as a
dependent on someone else’s tax
return.
• Your filing status generally
cannot be “married filing
separately.”
In addition to the health insurance
mandate, the Patient Protection
and Affordable Care Act enacted a
premium tax credit for individuals
purchasing insurance through a
government-sponsored
marketplace.
If qualified, you had the option of
receiving some or all of the credit
in advance, with payment sent
directly to your insurance
company, thereby reducing your
monthly premiums.
The credit amount is awarded on a
sliding scale based on your
household size and income.
Generally, the lower your
household income, the higher
your premium tax credit to help
cover the cost of marketplace
Alternatively, you could pay for
your marketplace insurance
throughout the year, then claim
the credit on your tax return,
either reducing your federal tax
owed or increasing your refund
amount.
Regardless of your choice,
whether you qualified for the
credit and how much credit you
received were based on your best
estimate of your 2014 household
income and family size at the time
you applied for marketplace
insurance.
If your actual household income
was more than the estimated
amount, you may need to pay
some of the credit back. If your
income was less than estimated,
you may qualify for a higher
credit amount and therefore
receive a larger refund.
“Everyone who received the
advanced credit or plans to claim
the credit can still do their own
taxes,” said Dolmage. “All you
have to do is answer simple
questions. The tax program will
complete the calculations and tax
forms to reconcile your income
and family information with the
premium credit to make sure you
get every dollar you deserve.”
If you reported all income and
family changes to your
marketplace as they happened in
2014, your tax liability or refund
amount is less likely to be affected
by your premium credit.
Dolmage recommends doing your
2014 taxes beforehand to help
estimate your 2015 income if you
plan to apply for marketplace
insurance and the premium credit
during the next enrollment period,
November 15, 2014 through
February 15, 2015.
Learn more about the premium
tax credit at www.irs.gov and
www.healthcareact.com. To file
your federal taxes free with
TaxACT Free Edition, go to
www.taxact.com.