What you should know about health insurance and taxes

Did you know that your medical coverage and medical insurance affects your insurance. If someone in your household is enrolled in a plan Marketplace in 2015, you will need when you file your federal tax return some new information. Form 1095 is important when filing your taxes to make sure insurance is properly claimed on a tax return and fines for not having insurance are avoided. 

 

Here are 5 things you should know about medical coverage and taxes:

  1. They will mail the form 1095-A. This will help you complete 2014 federal tax return. If you enrolled in a health plan market in 2015, they will send the form by mail during the first days of February. It will include important information such as your monthly payments made ​​to health insurance premium and the amount of advance payments of the premium tax credit was paid to its health plan in 2015.
  2. Your final tax credits for 2014 will be calculated with your federal taxes. The final amount of the premium tax credit will be calculated when you file your federal taxes. If during the year, used less advance payments of premium tax credits you are eligible, you will get a credit on your tax return. If you took more advanced payments to which you are eligible, you may have to pay the difference with your tax return
  3. If he did not have health insurance by 2014, use the form 8965. If your coverage Market began in mid-2014 and had no medical insurance at the beginning of the year, you must complete Form 8965 from the IRS when you file your tax return . This will show if you qualify for an exemption from payment of a fine for months had no insurance.
  4. You can pay a fine in taxes if you had no health coverage in 2014 and received an exemption. If you could have purchased health coverage in 2014, but decided not to, and does not qualify for an exemption, you may need to pay a fine with your federal taxes.
  5. If you had other health coverage in 2014 you only have to check the box on the tax form federal income tax. You will not receive a Form 1095-A. The health insurance coverage can be from sources including employment-based, Medicare, Medicaid coverage or plan purchased out of the market.