Recently, we wrote about the new Obamacare tax forms. So, how do you know which forms you have to file? The answer depends on your, or your client’s, situation. To help understand which forms you need to file this tax season, here is a quick guide to the new Obamacare tax forms, according to different healthcare situations.
If You are a Small Business Claiming a Health Care Tax Credit
If you are a small employer claiming a small business health care tax credit, you will file Form 8941, Credit for Small Employer Health Insurance Premiums.
If You Had Coverage the Entire Year
If you, and everyone in your household, had health coverage for the entire year you will simply check the box on line 61 of Form 1040, line 38 of Form 1040-A, or line 11 of Form 1040-EZ.
If You Enrolled in Health Insurance Through the Marketplace
If you enrolled in coverage through your state’s Health Insurance Marketplace you will receive Form 1095-A, Health Insurance Marketplace Statement.
Tip: If you did not receive a Form 1095-A in the mail, contact the state or federal Marketplace through which you enrolled.
If You Received an Advance Premium Tax Credit
If you received a Form 1095-A, Health Insurance Marketplace Statement, showing you received an advance payments of the premium tax credit in 2014, you must file a tax return in 2015 and reconcile the advance payments with the amount of the premium tax credit allowed on your return.
To reconcile the advance payments of the premium tax credit, you will make the calculations using IRS Form 8962 Premium Tax Credit (PTC).
If you are required to repay any excess advance payments of the premium tax credit, you will report the information on line 46 Form 1040 or line 29 of Form 1040-A, and cannot file Form 1040-EZ.
Related: Filing Taxes? How to Deal with Premium Tax Credits
If You are Claiming a Premium Tax Credit
If you are claiming the premium tax credit and did not receive an advance payments of the premium tax credit, you will file a tax return and IRS Form 8962, Premium Tax Credit (PTC).
If You are Claiming an Exemption for Not Having Coverage
If you are claiming an exemption from the requirement to have health coverage (the “Individual Mandate”) for anyone on your tax return, you will complete Form 8965, Health Coverage Exemptions, and submit it with your tax return.
However, there are certain exemptions that only the Marketplace can grant. These include religious conscience exemptions or a hardship exemptions. In these situations, file an application with the Marketplace and follow the instructions below about how to report exemptions from the Marketplace on your tax return.
Tip: If you’ve applied for an exemption from the Marketplace, but do not currently have an Exemption Certificate Number, enter ‘PENDING’ in Part I of Form 8965 Health Coverage Exemptions, and submit the form with your return.
If You are Making an Individual Shared Responsibility Payment
If you are making an Individual Shared Responsibility Payment because you did not have health coverage or qualify for an exemption for any month in 2014, you will enter the payment amount on line 61 of Form 1040, line 38 of Form 1040-A, or line 11 of Form 1040-EZ.
This year’s tax filing season is the first year individuals will report healthcare, premium tax credits, and Obamacare compliance on taxes. The forms you need to file depends on your, or your client’s, specific healthcare situation.
What healthcare tax situations are we missing? Which situations do you have questions on? Leave a comment and we’ll help answer.