With the start of the 2014 tax season underway, besides the usually forms you receive each year to prepare your Form 1040 (W-2’s, 1099’s, etc.), you may notice a few new tax forms you may need to prepare your 2014 tax returns. These forms are part of the Affordable Care Act (ACA).
These forms along with deciding where they belong on your tax return can be confusing and the instructions provided by the I.R.S. can also be confusing (does that surprise anyone?). Below is a list of these forms.
Form 1095-A: Anyone who purchased health insurance through the Health Insurance Marketplace, will receive Form 1095-A, which will show details of your insurance coverage such as the effective date, amount of the premium, and the advance premium tax credit or subsidy.
Form 1095-B or 1095-C: Although not required for 2014 taxes, you may also receive one of these forms to report insurance coverage from agencies outside the Marketplace and from your employer. The IRS has provided a transition period for Form 1095-B and 1095-C, so these will not be required for tax year 2014.
Form 8965: Beginning in 2014, individuals must have health care coverage, have a health coverage exemption, or make a shared responsibility payment with their tax return. Use Form 8965 to report a coverage exemption granted by the Marketplace (also called the “Exchange”) or to claim a coverage exemption on your tax return. In addition, if for any month you or another member of your tax household had neither health care coverage nor a coverage exemption, these instructions provide the information you will need to calculate your shared responsibility payment.
Form 8962: If you purchased health insurance in the Health Insurance Marketplace and received a premium tax credit in 2014, information about your advance premium tax credit will be reported and the actual premium tax credit will be determined on form 8962.
If any individual and family had insurance coverage from their employer or purchased health coverage off the exchange for the full year of 2014, you need only “check a box” on the 2nd page of your Form 1040 (line 61).
In November of 2014, as I prepared for the 2015 tax season, I attended two different income tax seminars to get myself familiar with the above tax forms. If when preparing your 2014 taxes and you have any questions or get totally frustrated, I am here to help prepare your tax return.