Your Marketplace Coverage and Your 2014 Tax Return

Did you know that your health coverage through the Health Insurance Marketplace may affect your taxes? If you or someone in your household was enrolled in a health plan through the Marketplace in 2014, you’ll need some new information to file your federal income taxes.

Here are some tips to help you get going

  1. Watch your mail for Form 1095-A. You should receive a Form 1095-A in the mail from the Marketplace by early February.
    • Keep this form with your other tax information, like your W-2 and other tax records. You won’t get this form if you have health coverage through Medicaid, Medicare, or the Children’s Health Insurance Program (CHIP).
    • When you get the Form 1095-A in the mail make sure the information matches your records. Check things like the start and end dates of your coverage and the number of people in your household. If you think information on your Form 1095-A is incorrect, visit HealthCare.gov/taxes/ to find out how to get a corrected Form 1095-A.
  1. Form 1095-A includes information about anyone in your household who enrolled in a health plan through the Marketplace for 2014 and the monthly premiums you paid to your health plan.
    • The information will also include a “benchmark” premium used to compute your premium tax credit.
    • It will include any advance payments of the premium tax credit that were paid to your health plan on your behalf for 2014 — these payments might have helped you lower what you paid for your monthly premiums.
    • You may get more than one Form 1095-A if anyone in your household switched plans in 2014 or reported life changes (like getting married or having a baby) after your coverage began. Or, if you had more than one policy covering people in your household during 2014.
  1. Your final premium tax credit for 2014 will be computed with your federal income tax return.
    • When you applied for health coverage through the Marketplace, you provided information on your application about your income and family size. The Marketplace used this and other information to determine the amount of premium tax credit you were eligible to receive.
    • Like most people who qualified, you probably used “advance payments” of this premium tax credit at the time you enrolled in a health plan, to lower what you paid for monthly premiums. If so, the final or actual amount of your premium tax credit will be computed when you file your federal income tax return. You’ll complete and attach the Premium Tax Credit Form (Form 8962) to your tax return when you file.
    • If the amount you used during the year is less than the actual premium tax credit you’re eligible for, you’ll get the difference as a credit on your tax return. If the advance payments you used are more than the actual amount of your credit, you may need to pay the difference with your tax return.
    • If you didn’t get any help to lower the amount you paid for your health plan premiums during 2014, you may still qualify for a premium tax credit when you file your taxes. Use Form 8962 from the IRS to find out if you qualify for a premium tax credit and compute the amount to report on your tax return.
  1. If you didn’t have health coverage for part of 2014, use Form 8965. If your Marketplace coverage started partway through 2014 and you were uninsured earlier in the year, you’ll need to fill out Form 8965 from the IRS when you file your taxes. This will show you if you qualify for an exemption from paying a fee for the months you didn’t have coverage.

Help is available

Resources for this post

www.healthcare.gov