Reporting your health care coverage

Wednesday, March 02, 2016

There are a few changes this year when it comes to filing your taxes. The biggest one is the requirement to report to the IRS if you enrolled in and received health care coverage through the Affordable Care Act (ACA’s) Health Insurance Marketplace in 2015.

Under the ACA, individuals (and their dependents) are typically required to have a minimum amount of health insurance coverage. Although you may have received this coverage through your work or through a program like Medicare, the IRS has been tasked with verifying that you have complied with the requirement. You are required to report your coverage on your tax return. Fortunately, the IRS has posted a handy guide to help you navigate the reporting requirements. The guide also lists exemptions to the ACA rule (e.g. not being able to afford coverage based on your income, experiencing only a short coverage gap, etc.).  

If you were enrolled in the Marketplace, you’ve probably already received a 1095 form early this year with information on your coverage, which will help you complete your tax return (if you have not received this form, click here). The good news is, after having been enrolled in the Marketplace you may be eligible for a tax credit (designed to help you pay for your health insurance premiums). The IRS has posted an online tool designed to help you determine if you’re eligible for a credit and how much it will be.