The Affordable Care Act (ACA) may impact you in this tax season — so we have put together information and resources that could be very helpful to you.
The long and short of it is that this tax season is the first time you will be reporting about your health insurance status on your taxes. A few key bits of information:
- For those who receive health insurance via their employer or the government (HUSKY or Medicare) for the whole year, you will most likely check a box on your tax return stating that you were covered
- For those who purchased health insurance on the state exchange (Access Health CT), you will receive a form 1095-A that explains your coverage, which you will use when filing your taxes
- For those whoreceived subsidies (financial help) to afford coverage purchased through Access Health CT, information on the 1095-A form that you receive will be used to make sure you had the correct subsidy for the year
- For those that are exempt from the requirement to have health insurance, you will report this on your taxes, as well
One thing to be clear on if you received a subsidy to pay for health insurance — these payments are advanced tax credits based on the income you reported when applying. Normally, if your income changes, you have to update that information throughout the year with the state exchange. This is to make sure that your subsidy isn’t too little or too much.
If you under-estimated your income and did not adjust it with the exchange, you may owe additional taxes–because the subsidy you received was too large and you may be liable to pay some of it back. If you over-estimated your income and did not adjust it with the exchange, you may receive a larger tax refund to make up for the fact that your subsidy was too small for the year.
Below are links with more information for you to be able to look into your own specific situation:
Information from Access Health CT: Tax Info Access Health CT has a whole page dedicated to explaining tax filing in relation to using the marketplace to get coverage
Connecticut specific: For Obamacare clients and some uninsured, tax time may get complicated
While written in November of 2014, this article does explain some of the challenges around tax time (Reported by Arielle Levin Becker, CT Mirror, Nov 25, 2014)
Straight from the IRS: Affordable Care Act Tax Provisions for Individuals and Families The IRS has a helpful page specifically for the ACA–it answers a lot of questions and links to important information