14 Jan Affordable Care Act and Your 2014 Taxes
By now, you’ve definitely heard of The Affordable Care Act. This year, in addition to worrying about forms W-2 or 1099 during tax season, most healthcare Marketplace customers have new filing requirements. Starting last year, the law required individuals to have essential health coverage or face a penalty on their income tax return. This is the first time that the rule will be implemented, so there are a few things to remember when filing your return and when signing up for coverage.
Affordable Care Act 2014 Taxes AWS Insurance New Oreans
First, remember that last day of enrollment for 2015 coverage is February 15, so if you haven’t done it give us a call today. Second, if you still have questions about the Affordable Care Act, we outlined its benefits last year and answered some of your concerns. Now that we’ve got that out the way, let’s look into this year’s coverage and how tax penalties are calculated.
This year, there are new questions about your health insurance that need to be answered on your tax return. If you had health coverage in 2014 from a source other than the government’s Marketplace, like your employer or a private plan, you’ll simply have to check a box in your tax return and not fill out any additional forms.
If your health coverage was purchased through the Marketplace, you’ll need to file an additional form – the Health Insurance Marketplace Statement, or Form 1095-A. This form will answer simple questions like monthly premiums or the extent of your coverage and is divided into three sections: recipient information, coverage household, and household information.
If you didn’t have health coverage in 2014, that is, for 3 months or longer, you’ll have to pay a fee when you file your 2014 income tax return. However, some individuals and households may qualify for a coverage exemption if they fall under one of the following, and will have to fill out form 8965:
- Having a short gap in coverage (less than three months)
- Not having affordable plans available
- Being eligible for the Indian Health Service
- Hardship experienced while obtaining insurance
- Have earned less than the tax filing threshold
Individuals that didn’t have health insurance in 2014 will have to pay the higher of:
- $95 per person, maxing out at $285 per family, or
- Depending on how much you make, a 1% of your yearly household income above $10,150 for an individual
Be prepared this year and have an insurance professional review your healthcare situation. Learn more about additional information on plans, eligibility, and deadlines for 2015 health insurance enrollment.
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AWS Inc serves the state of Louisiana by providing protection for your home, business, or family with affordable plans in property insurance, liability insurance, life insurance, car insurance, and flood insurance from our Metairie, LA office. Our corporate clients can rest assured that our dedicated advisers at AWS Risk Management, LLC will help you implement workable solutions that achieve maximum asset protection with minimal cost of risk to your company.
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