January 28, 2015
Important tax information you need to know
If you or anyone in your household enrolled in a Marketplace health insurance plan in 2014, chances are you were taking advantage of a tax credit. The Department of Health and Human Services reported (2015, January 23), of the 217,492 Illinoisans who selected a plan during 2014 open enrollment, 77% selected a plan with financial assistance. When you enrolled, the amount of that tax credit was estimated, based upon the income you reported. The insurance premiums you paid were lowered by your estimated tax credit. These are known as "advanced payments." However, the actual or final amount of your tax credit is ultimately computed with your federal tax return.
So what does that mean for you? It means you will need a Form 1095-A to complete your taxes. It will come in the mail in the next several weeks. For more information about the 1095-A and what to expect, visit https://www.healthcare.gov/taxes/marketplace-health-plan/. And if your Marketplace coverage started partway through 2014 and you didn't have health coverage for part of 2014, you will need to fill out IRS Form 8965 and file it with your taxes. It will help you determine if you are required to pay a penalty for not having coverage or if you qualify for an exemption.
Need help? For more information about how health coverage will affect your taxes, visit HealthCare.gov/taxes.
How the Health Care Law is Making a Difference for the People of Illinois. (2015, January 23). Retrieved from http://www.hhs.gov/healthcare/facts/bystate/il.html
Things to know about health insurance and your taxes. (2015, January 9) Retrieved from https://www.healthcare.gov/blog/
If you had a health plan through the Health Insurance Marketplace in 2014. (2015, January 23). Retrieved from https://www.healthcare.gov/taxes/marketplace-health-plan/
If you didn't have health coverage in 2014. (2015, January 23). Retrieved from https://www.healthcare.gov/taxes/no-health-coverage/
Guest post by Heather Coyle