Obamacare & your Taxes – Reminders on What’s New this Year
This year marks the second year that your health insurance choices could have an impact on your taxes. Here are some things to keep in mind when preparing to file your 2015 taxes:
- You will receive Tax form 1095-B or 1095-C from your employer, an insurance company (if you have an individual plan), or from the Federal Government (if you have coverage through a federal program). If you have not already received yours, look for it in the mail in the coming weeks.
- The Internal Revenue Service (IRS) gave employers until the end of March to send the appropriate form to their employees.
- You should NOT wait for the forms to file your taxes. File your taxes and keep the forms with your tax records. You are not required to submit them with your taxes but may need them to show proof of insurance at a later date.
- Anyone who did not have insurance in 2015 will pay a penalty unless they qualify for an exemption such as death of a family member, bankruptcy filing, being a victim of domestic violence, or making under a certain amount and being unable to afford coverage.
- Anyone who received a subsidy will be required to show that their actual taxable income qualified for the subsidy and they will have to pay back any money owed (or their refund will be reduced if they are owed a refund). For those who qualified for more assistance than they received for 2015, a credit will be issued.
Contact your tax advisor for any questions regarding your tax situation. For additional information visit www.HealthCare.gov or call 1-800-318-2596.