If you purchased health insurance on the exchange and collected a subsidy (in the form of a tax credit) to help pay for coverage, or benefited from other cost-sharing reductions, you were able to do so because of the income you reported when you purchased your plan. But if you are like many Americans, the income you anticipated and reported to the exchange may differ from the income you actually
5 Tax Tips on Health Insurance for the Self-Employed
Are you self-employed or thinking of becoming self-employed? The Affordable Care Act has made health insurance available to anyone — regardless of current medical status. This means you can purchase coverage for yourself and/or your family on the individual health insurance market — even if you have a pre-existing medical condition. But did you know today’s tax code can save you money if you’re self-employed and you buy health insurance?
Corrected Tax Form 1095-A
If you bought health insurance in 2014 through the federal health insurance marketplace (aka, healthcare.gov) AND you collected a subsidy from the government to help you pay for your coverage, then you should have received a tax form 1095-A in the mail during late January or early February, 2015. IRS Form 1095-A – Health Insurance Marketplace Statement — is new for the 2014 tax season, and provides details of how
Tax Filing with the Affordable Care Act
With January behind us, it’s time to start thinking about filing your 2014 income taxes. By now, you should have received most, if not all, of your tax forms and notices from your employer(s), banks, mortgage company, financial institutions, etc. — and, if you bought health insurance on the exchange — the Marketplace. As we posted several weeks ago, the upcoming tax season promises to be complicated for those who
King v. Burwell — Will the Supreme Court Do Away with Subsidies?
If you live in Virginia, an upcoming Supreme Court decision may have you wondering if your health insurance subsidy is in jeopardy. Last year several lawsuits were brought against the government challenging the authority of the IRS to distribute health insurance subsidies to people who buy their coverage on the federal exchange (aka healthcare.gov). The issue was whether or not the language in the Affordable Care Act — which refers
How Will the Affordable Care Act Affect my Taxes?
Have you started thinking about filing your 2014 taxes? April 15 may be a few months away, but this year — the first year the Affordable Care Act (ACA) is in effect — filing taxes will be more complicated for millions of Americans. That’s because certain provisions of the new law — namely, penalties and subsidies — will be reconciled at tax time. If you got health insurance through your
What are the Penalties for Not Having Health Insurance in 2015?
If you did not have health insurance in 2014, be prepared to pay a penalty when you file your 2014 income taxes next April. If the penalty for not being covered in 2014 did not seem too high, brace yourself for the dollar amount to rise next year, and the year after. Here are the penalty amounts for 2014, 2015, and 2016: 2014 2015 2016 $95 per adult $47.50 per
How Health Insurance Subsidies Could Impact Your Tax Bill
April 15 may seem far away, but it is not too soon to think about your 2014 tax bill if you purchased health insurance through a state- or federally run health insurance exchange. If you’re getting help paying for your coverage in the form of tax credits that subsidize your monthly insurance premium, you must report any changes that could affect either your eligibility for a subsidy or the amount
IRS Says Employers Can’t Give Employees Money and Send Them to the Exchange
A recent ruling by the Internal Revenue Service (IRS) addresses a growing trend among employers who, in an effort to avoid the rising cost of providing health insurance, have opted to contribute money towards their employees’ individual health insurance premiums rather than provide group coverage for their workforce. Employees then use that money — which does not count as income and therefore is tax-free — to purchase coverage in the
How Do Premium Tax Credits Work if My Reported Income is Inaccurate?
For many people — for example, the self-employed, seasonal workers, or those with multiple jobs — income fluctuates throughout the year, and also from year to year. Or maybe you got a promotion or raise, took on another job, or lost work. These are other examples of when your income will not be the same as you anticipated. Having an uneven income can make it difficult to accurately report your
