Health Care

The most frequently asked tax questions related to Health Care
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Affordable Care Act

2018-Premium tax credit

Asked Thursday, December 20, 2018 by an anonymous user
For 2018, you are required to have minimum essential health coverage through an employer plan, a government program, or other plan, or pay a penalty. The mandate does not apply after 2018.

To help those of modest means pay premiums for coverage obtained from a government exchange (Marketplace), there’s a premium tax credit . Eligibility for this advanceable, refundable tax credit depends on your household income and other factors.

The credit continues to be available even though the individual mandate ends after 2018.
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ObamaCare & Form 1040

Forms 1095-B and 1095 -C - Health Insurance from Employer Statement

Asked Friday, November 25, 2016 by an anonymous user
If you or a family member enrolled in health insurance coverage through your employer, your employer must issue a Form 1095-B or 1095-C.
This form provides the required information on a monthly or annual basis to complete IRS Form 8962. Form 8962 is used to calculate a Premium Tax Credit or a Repayment on your current year's tax return.
Your employer has also reported this information to the IRS.
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Affordable Care Act

Income levels to qualify for health premium credit

Asked Monday, October 31, 2016 by an anonymous user
The Income levels to qualify for health premium credit have increased. For fillers with household incomes ranging from 100% to 400% of the 2015 poverty level: $11,770 to $47,080 for singles and $24,250 to $97,000 for a family of four.
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Affordable Care Act

Maximum out of pocket cap

Asked Tuesday, November 25, 2014 by an anonymous user
The maximum out of pocket cap for 2016 will increase to $6,850 for an individual and $13,700 for a family policy.
The maximum out of pocket cap for 2017 will increase to $7,150 for an individual and $14,300 for a family policy.
The maximum out of pocket cap for 2015 will increase to $6,600 for an individual and $13,200 for a family policy.
The 2014 maximum out of pocket cap was $6,350 for an individual and $12,700 for a family policy.
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Affordable Care Act

Penalty for not having coverage

Asked Tuesday, November 25, 2014 by an anonymous user
In 2016, the penalty for not having health care coverage is the higher of 2.5 percent of your income or $695 per adult and $347.50 per child with a maximum penalty per family of $2,085
The penalty will be reported on your 2016 tax return.
In 2015, the penalty for not having health care coverage is the higher of 2 percent of your income or $325 per adult and $162.50 per child with a maximum penalty per family of $975.
The penalty will be reported on your 2015 tax return.
The penalty for not having health care coverage in 2014 was the higher of 1 percent of your income or $95 per adult and $47.50 per child with a maximum penalty per family of $285.
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Affordable Care Act

Phone assistance

Asked Tuesday, November 25, 2014 by an anonymous user
If you need help you can call the federal Health Insurance Marketplace at 800-318-2596.
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ObamaCare & Form 1040

Premium tax credit

Asked Monday, November 24, 2014 by an anonymous user
You may be eligible to claim the premium tax credit on your 2016 tax credit if you, your spouse, or a dependent enrolled in health insurance through a Health Insurance Marketplace and your household income falls within specific criteria.
The credit provides financial assistance to pay the premiums by reducing the amount you owe or increasing your refund amount.
If the marketplace overestimated your income when they calculated your advance payment then you will probably receive a refund. If the marketplace underestimated your income then you will have to repay a portion of the advance payment. The premium tax credit will be reported on IRS Form 8962. Both the credit or additional tax due transfer to Form 1040.
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ObamaCare & Form 1040

Repayment of Excess Advance payment

Asked Monday, November 24, 2014 by an anonymous user
If the marketplace underestimated your income when calculating your advance payment and you do not claim any health coverage exemptions then you will probably have to repay a portion of the advance payment. The premium tax credit will be reported on new IRS Form 8962.
Other factors that can cause a penalty calculation is that you received a advanced payment and your filing status is married filing separately or as a dependent of another or your household income is above or below certain limits.
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ObamaCare & Form 1040

Shared Responsibility Penalty Payments

Asked Monday, November 24, 2014 by an anonymous user
If you do not have health insurance coverage for all 12 months in 2016 you may have to make a penalty payment with your tax return unless certain other conditions exist.
Individuals for whom coverage is too expensive are exempt from the penalty payment. Also individuals may qualify for a coverage exemption. A coverage exemption can be granted from your marketplace or you may qualify for a coverage exemption based on your household income or gross income being below certain threshold amounts.
Individuals may also qualify for certain hardship coverage exemptions based on their family circumstances. The Shared Responsibility Penalty Payment will be reported on Form 1040, line 61. The coverage exemptions being claimed are reported on new IRS Form 8965.
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ObamaCare & Form 1040

Form 1095-A - Health Insurance Marketplace Statement

Asked Monday, November 24, 2014 by an anonymous user
If you or a family member enrolled in health insurance coverage through a health insurance marketplace, the marketplace must issue a Form 1095-A.
This form provides the required information on a monthly or annual basis to complete IRS Form 8962.
Form 8962 is used to calculate a Premium Tax Credit or a Repayment on your current year's tax return.
The marketplace has also reported this information to the IRS.
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