Affordable Care Act - How does it have to do with taxes?

One of the most significant changes in the last two years is the Affordable Care Act, also known as Obamacare. This law was very controversial and has provisions that affect a number of different entities.

According to the IRS website, The Affordable Care Act contains comprehensive health insurance reforms and includes tax provisions that affect individuals, families, businesses, insurers, tax-exempt organizations and government entities. These tax provisions contain important changes, including how individuals and families file their taxes. The law also contains benefits and responsibilities for other organizations and employers.

As an individual, the law requires you and your dependents to have healthcare coverage.  You could have secured healthcare through your place of employment, or you might live in a state that has a Health Insurance Marketplace.  If your employer does not offer insurance or if the insurance is found not to qualify, then you might get the insurance through the Marketplace.

The health care law will bring some changes to the 2015 federal income tax return that individuals file in 2016. This year marks the first time that taxpayers may receive multiple information forms that they can use to complete their tax return and will keep with their tax records.
The information forms are:

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

Taxpayers who enrolled in coverage through the Marketplace may qualify for a premium tax credit and must file a tax return to claim the credit and to reconcile any advance payments made on their behalf in 2015. These taxpayers will should receive a Form 1095-A.   If you are expecting to receive a Form 1095-A, you should wait to file your 2015 income tax return until you receive that form.

As you can see, the Affordable Care Act added a few more forms to filing taxes.  It is especially important to keep good records, especially if you have received the premium tax credit.  You are required to file a tax return if only to reconcile the premium tax credit against the cost of the insurance and any payments you made during the year;