In particular, if you obtained health insurance through a State Marketplace or the Federal Marketplace you will receive a new form, 1095-A. This form contains critical information needed to complete your 2014 tax return. The 1095-A (Health Insurance Marketplace Statement) has information about your family’s 2014 health care coverage which will impact the amount of your tax refund or amount due. It is critical that your 1095-A is given to your tax preparer.
So keep an eye out for the 1095-A in your mail. You should receive it by January 31. It will be mailed to you by the Marketplace where you purchased your insurance. If you sent a consent to the Marketplace, they may send it to you electronically (via e-mail). The Marketplace will also send a copy to the IRS.
The information on your 1095-A will be used to complete the new tax form 8962, Premium Tax Credit (PTC). Form 8962 is used to reconcile the Premium Tax Credit you’re entitled to with any Monthly Advance Payments of Premium Tax Credit which the government sent to your insurance company during 2014. This reconciliation may result in a refund to you (if the Advanced Payments were less than the Premium Credit you are entitled to) or a balance due (if the Advanced Payments were more than the Premium Credit you are entitled to). This refund/amount due will be added to any other refund/balance due calculated on your tax return.
As other parts of the ACA are rolled out in 2015, additional forms will be required for your 2015 tax return (some are optional for 2014).
The 2014 IRS forms discussed above and the related instructions are still in a draft form and should be finalized in the coming weeks. Please be assured that the staff at Caldwell, Walley & Caldwell, LLP continue to monitor all updated guidance from the IRS relating to the Affordable Care Act and all other tax law changes.
Be sure to take time to enjoy the Holiday Season.
Caldwell, Walley & Caldwell, LLP
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