For most people, the Affordable Health Care Act does not affect income tax returns for 2013 that they are filing in 2014. However, some people may have to make important decisions for the March 31, 2015. The deadline for open enrollment. This could affect a penalty that they file on their 2014 tax returns if they do not have health insurance coverage. It is essential to file these taxes correctly 2013 onward.
Learn about Health Care Law
Here are five things about the health care law you should consider when filing your taxes and making decisions about what kind of insurance coverage you will purchase.
March 31 Health Insurance Deadline and Taxes
Are you Currently Insured? No Change: If you are currently insured, you do not need to do anything to keep your current insurance coverage under the health care law.
Is not Insured – Register for March 31: The open enrollment period to buy health insurance coverage through the Health Insurance Market for 2015 continues through March 31, 2015 When you get health insurance through the market. , you may have advance payments of the premium tax credit to help you reduce your monthly premiums immediately available. The health insurance premium tax credit could change throughout the year depending on personal circumstances and may be different by the time you file taxes.
Insurance Premium Tax Credit to Reduce Your Monthly Payments: If you get insurance through the market, you may be eligible to claim the premium tax credit. You can choose to advance payments of the tax credit to be sent directly to your insurer during 2014, or wait to claim the credit when filing your tax return in 2015. If you choose to advance your insurer payments are shipped, you will have to reconcile payments on your 2014 tax return, which will be presented in 2015. If you are already receiving advance credit payments will not have to do anything at the moment unless there is a change in your circumstances.
Changing Circumstances: If you are receiving advance payments of the premium tax credit to help pay for their health insurance coverage, you should report changes in your life, such as changes in income, marital status or family size , Health Exchange Market. Report changes will help ensure you are getting the right amount of advance payments of the premium tax credit. This will eliminate most surprises during tax time.
Shared Responsibility Payments for Individuals: From January 2014, you and your family have had the requirement to have health insurance coverage or have an exemption from coverage. Most people already have qualified health insurance coverage. These people will not have to do anything but keep that coverage throughout 2014. If you can afford coverage but choose not to buy it and remain uninsured, you might have to make a payment of shared responsibility for individuals who file their taxes in 2015.