Even if you’re not sure you’ve earned enough to file your taxes, most people should file their taxes, especially since STATE filing often has different requirements from FEDERAL requirements and because the IRS seeks out non-filers based on its ever-expanding ability to track your records. If you participate in Obamacare, you should file in almost every instance.
Always consult your tax adviser. This article is general information about the tax treatment of the premium tax credit.
Having given the general caveat that when in doubt FILE, there is good news. The IRS typically is pretty good at giving instructions and Obamacare is no exception. The 1040 Instruction booklet, available online, advises that you must file a tax return when, “Advance payments of the premium tax credit were made for you, your spouse, or a dependent who enrolled in coverage through the Health Insurance Marketplace.”
Individuals are informed that they should receive one or more FORM 1095-A regarding the premium tax credit by January 31, 2015.
If you look up form 1095-A, it is a STATEMENT from the government about your health insurance coverage. You find that enrollment in health insurance through the marketplace will trigger the government sending you a 1095-A by January 31, 2015. Whether or NOT you received your premium tax credit prepaid, ahead of tax filing, you’ll receive form 1095-A (in some cases more than one).
Individuals who receive an Obamacare statement, 1095-A, must file form 8962, the Premium Tax Credit form. Form 8962, the Premium tax credit form is also used to report CHANGES you must report to the marketplace that could influence your premium tax credit. These are also identified on the form such as changes in employment, income, moving, et cetera.
If you did not have health insurance you will file form 8965 regarding an exemption if you choose to or are required to file income taxes. The purpose of 8965 is to report your exemption AND to calculate your shared responsibility payment, if any, that is required. Even if you choose to file your taxes but believe that it is likely that you didn’t have to because of income levels, IF you don’t have health insurance you must file FORM 8965.
It should be noted that in some cases you can’t simply claim the exemption because the “Marketplace” must GRANT the exemption and issue a certificate of exemption. If you’ve applied for this exemption and it is pending, you will still fill out part I of form 8965. If your exemption can be claimed without being granted by the Marketplace resulting in a certificate of exemption, you fill out part II.
If you received a premium tax credit you’ll file form 8962 with your 1040.
Remember, if you’re self-employed you need to file your taxes if your earnings were in excess of $400.00.
For 2014, most people will merely have to check off that they had health insurance coverage on their 1040 form. If you did NOT have health insurance, you must file the 8965 regarding an exemption OR pay a shared responsibility payment.
The IRS gets pretty specific and therefore is pretty clear in informing us about what qualifies as MINIMUM ESSENTIAL COVERAGE types in order to AVOID the individual responsibility payment. You can look this up at IRS.GOV.
