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.
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IF YOU... |
THEN YOU... |
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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 |
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Had coverage or an employer offered coverage to you |
Will receive one or more of the following forms;
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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 |
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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 |
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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 |
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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 |
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Are responsible for making an individual shared responsibility payment |
Will report it on the tax return and make the payment with income taxes |
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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 |
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Did not enroll in health insurance from the Marketplace |
Cannot claim the premium tax credit |
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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 |
