ACA Impact on Taxpayers

Posted by BAS - 02 February, 2017

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The IRS’ first Health Care Tax Tip of 2017 explains how health care reform impacts individuals. Specifically, the IRS explains items to consider when filing a tax return. IRS Tax Tip 2017-1 can be accessed here, and the main points are reproduced below. 

IF YOU...

THEN YOU...

Are a U.S. citizen or a non-U.S. citizen living in the United States

Must have qualifying health care coverage, qualify for a health coverage exemption, or pay a penalty when you file your income tax return

Had coverage or an employer offered coverage to you

Will receive one or more of the following forms;

  • Form 1095-A, Health Insurance Marketplace Statement
  • Form 1095-B, Health Coverage
  • Form 1095-C, Employer-Provided Health Insurance Offer and Coverage 

Had health coverage through an employer or under a government program – such as Medicare, Medicaid and coverage for veterans – for the entire year

check the full-year coverage box on Form 1040 series return

Did not have coverage for any month of the year

Should check the instructions to Form 8965, Health Coverage Exemptions, to see if eligible for an exemption

Were eligible for an exemption from coverage for a month

Must claim the exemption or report an exemption already obtained from the Marketplace by completing Form 8965, Health Coverage Exemptions, and submitting it the tax return

Did not have coverage and were not eligible for an exemption from coverage for any month of the year

Are responsible for making an individual shared responsibility payment with the tax return filing

Are responsible for making an individual shared responsibility payment

Will report it on the tax return and make the payment with income taxes

Received the benefit of more advance payments of the premium tax credit than the amount of credit for which you qualify on your tax return

Will repay the amount in excess of the credit allowed subject to a repayment cap

Did not enroll in health insurance from the Marketplace

Cannot claim the premium tax credit

Are eligible for the premium tax credit

Can choose when enroll in coverage to get premium assistance sent to your insurer each month to lower your monthly payments or get all the benefit of the credit claimed on tax return


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