Preparing for 2015 tax filing season and your healthcare plan
Statements by Secretary Lew and Secretary Burwell on preparing for the upcoming tax season
In preparation for the 2015 tax filing season, the U.S. Department of Health and Human Services and the Treasury Department are putting in place resources to provide tax filers with the information and resources they need to get their questions answered.
Millions of Americans who get their health insurance through work are benefitting from the Affordable Care Act, and millions of others have signed up for the Health Insurance Marketplaces and received financial assistance to lower their monthly premiums.
Starting this year, consumers will see some changes to their tax returns. While the vast majority of tax filers – over three quarters – will just need to check a box on their tax return indicating they had health coverage in 2014, people who have coverage through the Marketplaces, or decided not to enroll in coverage, should be aware of some additional steps that will be a part of the tax filing process starting this year. Read More: Preparing for the upcoming tax season
In the coming weeks, consumer-friendly tools and resources will be made available for those tax filers who have health coverage through the Marketplaces, those seeking an exemption, and those looking for information about the fee for those who could afford to purchase health coverage but chose not to. General resources can be found at www.IRS.gov/ACA or https://www.healthcare.gov/taxes/.
A sampling of some of resources already available, include:
IRS: Health Care Law: What’s New for Individuals & Families
HHS: 3 Tips About Marketplace Coverage and Your Taxes
HHS: No Health Coverage? What That Means for Your Taxes
CMS Releases New Tools to Help Consumers During Tax Season
On Friday, January 16, 20015, CMS released new tools to help consumers during the upcoming tax filing season. The 2015 tax season is the first time individuals and families will be asked for some basic information regarding their health insurance on their tax returns. Specifically, CMS has made available two tools to help consumers fill out IRS Forms 8962 and 8965. One tool helps consumers determine the amount of their 2014 Premium Tax Credit for Form 8962. The second tool helps consumers determine whether or not they qualify for the exemption for coverage being unaffordable, for Form 8965.
While the vast majority of tax filers – over three quarters – will just need to check a box on their tax return indicating they had health coverage for all of 2014, people who purchased coverage through the Health Insurance Marketplaces, or decided not to enroll in coverage, should be aware of the additional steps that will be a part of the tax filing process starting this year. Consumers will have questions about this new process and the Administration is committed to providing the information and tools tax filers need to understand the new requirements.
These tools can be accessed here: https://www.healthcare.gov/taxes/
In addition, CMS has posted a new fact sheet for consumers about health coverage and federal income taxes as well as specific information on different types of exemptions.
The fact sheet can be found here: http://www.hhs.gov/healthcare/facts/factsheets/2015/01/health-coverage-federal-income-taxes.html
The following resources are also available to the public:
– 3 Tips About Marketplace Coverage & Your Taxes: English / Spanish
– My Tax Checklist
Access for Consumers to Data on Premium Tax Credits for Tax Purposes (FFM 1095A Generation, Distribution)
The Federally Facilitated Marketplace began generating and distributing the Form 1095As on Saturday, January 10, 2015. Consumers will be able to access their information online as early as Saturday and they will begin getting their forms in the mail as early as the beginning of next week.
Consumers will use Form 1095-A to obtain information needed to complete Form 8962 (Premium Tax Credit (PTC)). Consumers must complete Form 8962 and file it with their return if they want to claim the premium tax credit or they received premium assistance through advance credit payments.