Did you receive a subsidy to help you pay for health insurance in 2014?
Have you filed your 2014 federal income tax return?
If you collected a subsidy in 2014, but did not file a 2014 tax return — Form 1040 with Form 8962 — you cannot get a subsidy in 2016.
The IRS communicated this in IRS Letter 5591 this summer, and you may also soon hear from your state’s marketplace and/or your health insurance carrier* as we approach open enrollment for 2016 health insurance.
It is critical you file your 2014 tax return ASAP because the marketplaces use federal tax returns to verify income and determine if you are eligible for a subsidy. If your taxes are not in order, your health insurance plan may be renewed for 2016 without a subsidy.
Here are some questions you may have:
2014 Tax Filing Requirement – Frequently Asked Questions
| Can I file a 2014 Form 1040EZ to satisfy the requirement outlined in IRS Letter 5591?
No. You must file a full Form 1040, with IRS Form 8962 – Premium Tax Credit – in order to keep your federal financial assistance in 2016. |
| I don’t normally file taxes because my income is below the filing threshold. Do I still need to file?
Yes. Even if you don’t normally file, you must file a full Form 1040, with IRS Form 8962, or you cannot get a subsidy in 2016. |
| How do I complete Form 8962?
You should have received a Form 1095-A from the Marketplace. If you don’t have it, you can log into your account on healthcare.gov or your state’s marketplace to view a copy. Form 1095-A contains the information you will need to file Form 8962. Click here for more information. |
| I filed for an extension and have not yet filed my 2014 tax return. What should I do?
The deadline for a 2014 extension is October 15, 2015. This will be too late to qualify for federal assistance in 2016. You should file your Form 1040 with Form 8962 right away. Once you have filed, go into your Marketplace account (healthcare.gov for Virginia residents) and check the box indicating you have filed your taxes. This will allow the Marketplace to renew your coverage with a subsidy. |
| I did not collect a subsidy in 2014 but I do now in 2015. What should I do?
You don’t need to do anything now to continue to receive a subsidy in 2016. However, you will need to file your 2015 federal tax return — full Form 1040 with Form 8962 — to receive a subsidy in 2017. |
Consult a Tax Professional
Virginia Medical Plans is available to help you with your health insurance needs, but for specific tax questions, it’s best to consult a tax professional. You can also visit the IRS website.
If we can be of assistance on a health insurance matter, please give us a call at 703-707-8270.
*If you filed a 2014 tax return but receive a letter from you health insurance carrier, you may disregard the letter. Insurance companies do not have access to IRS data and may send the letter as a courtesy to all policyholders who collected a subsidy in 2014.
