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What you need to know about health insurance and taxes


published to January 9, 2015

Did you know your health insurance may cover it? affect your taxIf someone in your household signed up for the Marketplace plan in 2014, they’ll need new information when filing federal income taxes.?

Here are five things you should know about health insurance and taxes.

  1. Check your email for Form 1095-A. Help with filing your 2014 federal tax return. If you signed up for a Marketplace health plan in 2014, Marketplace will email you this new form by early February.This form contains important information For example, the monthly premiums paid for health insurance and the premium tax credit prepayments paid for health insurance in 2014.
  2. The final premium tax credit for 2014 is calculated on your federal income tax return. The premium tax credit amount for 2014 is based on your final income for the year and will be found when you complete your tax payments. If you used the premium tax credit advance in a year, you can claim the credit on your tax return if you used less than you were eligible for. If you prepay more than you qualify for, you may be required to pay the difference on your tax return.
  3. If you did not have health insurance for part of 2014, use Form 8965. If your Marketplace coverage started in the middle of 2014 and you didn’t have insurance earlier in the year, you’ll need to complete Form 8965 from the IRS when you file your tax returns. This will show you if you are eligible to have your fees waived for the months you did not have insurance.
  4. If you don’t have health insurance in 2014 and don’t have an exemption, you can pay the fee with taxes. If you were eligible for health insurance in 2014 but chose not to purchase it and are not eligible for the waiver, you may need to: pay the fee on your federal tax return.
  5. If you have 2014 health insurance from another source, simply check the box on the federal income tax form. We do not receive Form 1095-A.coverage from another source Includes coverage for plans purchased outside of Jobs, Medicare, Medicaid, or the Marketplace.

Need help? For more information on how health insurance affects taxes, please visit: HealthCare.gov/taxes.



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