As you begin to gather the information you need to file your taxes, it’s important to remember that information about your health coverage is now a part of the tax filing process.
Here’s what you need to know if you have Marketplace coverage:
- If you enrolled in Marketplace health coverage in 2015, you’ll soon get an important tax document in the mail, called Form 1095-A. Your 1095-A includes information you need in order to complete your 2015 federal income tax return. You should wait to file your income tax return until you receive this document in the mail. It should arrive by early February. When it arrives, keep it with your other tax records, like the W-2 you get from your employer.
- If you got financial help to lower the cost of your monthly premiums, you must file a tax return, even if you typically wouldn’t have to, and report the amount of financial assistance you got. The amounts will show on your 1095-A. Now that you know your final income for the year, you need to reconcile the difference between the amount of financial assistance you got with the amount you should have gotten based on your 2015 earnings. Information included on your Form 1095-A will help you do this. If you don’t file a tax return and reconcile your financial help, the Marketplace can’t continue to give you financial help in the future.
Remember, the fee for not having coverage is increasing again this year. If you go without health coverage in 2016, the fee you’ll have to pay next year will increase to $695 or 2.5 percent of your income — whichever is higher.
The good news is Open Enrollment for 2016 coverage is happening now and runs through January 31. If you still need coverage and want to avoid paying a fee next year, you must sign up for coverage before January 31.
This is from today’s news)