Affordable Care Act - New Forms
In 2010 Congress passed the Affordable Care Act. Beginning in 2014, there will be new reporting requirements for all individual taxpayers due to this law.
Several new forms will be issued to taxpayers this year and next year:
Form 1095-A: If you purchased your health insurance through any federal or state health insurance exchange, this form should be mailed to you by January 31, 2015. Make sure you provide this form to us, since this information is required, if applicable to you, in order to prepare a complete and accurate return.
Form 1095-B: This form will be from an insurance company and will report proof of minimum essential coverage so covered taxpayers can avoid penalties. This form is optional for 2014, so if it applies to you, you may or may not receive this form in 2015, but you will receive one in 2016.
Form 1095-C: This form will be from employers to show employee’s proof of coverage. This form is also optional for 2014, but required to be filed in 2016 for the 2015 filing year. (If your employer is not subject to the employer mandate – under 50 full time employees – then they will not be required to file this form.)
If you receive any of these forms, they must be included with your tax information so that we can file a complete and accurate return. If you do not receive these forms, we will be asking you several new questions this year such as: Did you have health insurance? Who provided your coverage? Were there any gaps in your coverage during the calendar year? Were all of your dependents covered?
One last word of caution, if you purchased your health insurance through an exchange and received Premium Reduction Credits, you could be required to pay back part of your Premium Reduction Credits with your tax return if your income is greater than the estimate you used when obtaining your insurance.
We thank you for your business.