Health Care Law Brings Changes to IRS Tax Forms

This year, there are some changes to tax forms related to the Affordable Care Act. Along with a few new lines on existing forms, there will also be two new forms that will need to be included with some tax returns. While most taxpayers will simply need to check a box on their tax return to indicate they had health coverage for all of 2014, there are also new lines on Forms 1040, 1040A, and 1040EZ related to the health care law.

To help navigate these changes, taxpayers and their tax professionals should consider filing their return electronically. Using tax preparation software is the best and simplest way to file a complete and accurate tax return as it guides individuals and tax preparers through the process and does all the math. 

Here is information about the new forms and updates to the existing forms:

Form 8965, Health Coverage Exemptions

• Complete this form to report a Marketplace-granted coverage exemption or claim an IRS-granted coverage exemption on the return.
• Use the worksheet in the Form 8965 Instructions to calculate the shared responsibility payment.

Form 8962, Premium Tax Credit

• Complete this form to reconcile advance payments of the premium tax credit, and to claim this credit on the tax return.

Additionally, if individuals purchased coverage through the Health Insurance Marketplace, they should receive Form 1095-A, Health Insurance Marketplace Statement, which will help complete Form 8962.

Form 1040

• Line 46: Enter advance payments of the premium tax credit that must be repaid
• Line 61: Report health coverage and enter individual shared responsibility payment
• Line 69: If eligible, claim net premium tax credit, which is the excess of allowed premium tax credit over advance credit payments

Form 1040A

• Line 29: Enter advance payments of the premium tax credit that must be repaid
• Line 38: Report health coverage and enter individual shared responsibility payment
• Line 45: If eligible, claim net premium tax credit, which is the excess of allowed premium tax credit over advance credit payments

Form 1040EZ

• Line 11: Report health coverage and enter individual shared responsibility payment
• Form 1040EZ cannot be used to report advance payments or to claim the premium tax credit

For more information about the Affordable Care Act and filing your 2014 income tax return visit www.NTSrefund.com

Affordable Care Act Tax Provisions for Individuals & Families

IRS.gov - The Affordable Care Act, or health care law, contains health insurance coverage and financial assistance options for individuals and families. The IRS administers the tax provisions included in the law. Visit HealthCare.gov for more information on coverage options and financial assistance.

What do I need to know about the health care law?

The Individual Shared Responsibility Provision requires you and each member of your family to have qualifying health insurance (called minimum essential coverage), have an exemption, or make a shared responsibility payment when you file your federal income tax return. If you get your insurance coverage through the Health Insurance Marketplace, you may be eligible for a Premium Tax Credit. Filing electronically is the easiest way to file a complete and accurate tax return. 

Coverage  Credits Payments ·        If you are like most people, you probably already have qualifying health care coverage and don’t need to do anything more than continue your insurance. ·        If you don’t have or maintain coverage, you will have to get an exemption or make a payment with your federal income tax return. ·        If you don’t have coverage, you may be able to get it through the Health Insurance Marketplace. For more information about the marketplace, visit      HealthCare.gov    ·        If you get coverage through the health insurance marketplace you may be eligible for the Premium Tax Credit (PTC). ·        The premium tax credit can be paid in advance to your insurance company or to you when you file your federal income tax return. Find out more about the option to get it now or get it later. For more information, see Publication 5120. ·        If you receive advance credit payments, you need to report changes in circumstances that will affect the credit to the Marketplace as they happen. For more information, see Publication 5152.  ·        If you don’t have coverage or qualify for an exemption you may have to make anIndividual Shared Responsibility payment when you file your income tax return. ·        For 2014, generally, the payment amount is the greater of 1% of your household income above your filing threshold or $95 per adult ($47.50 per child) limited to a family maximum of $285.   ·        You will report your coverage, exemption or payment on your federal income tax return. For more information, see questions #25 and #26.