2014 was the first tax year that the Individual Shared Responsibility Provision<\/b> (SRP)<\/b> of the Affordable Care Act (ACA) went into effect. That means all taxpayers were required by law to have had minimum essential coverage <\/i>for all 12 months, which includes:<\/span><\/p>\n If you have such health coverage, all you have to do is check the \u201cYes\u201d box on the new line 61 on the 2014 Form 1040.<\/span><\/p>\n Figure 1:<\/i> The 2014 IRS Form 1040 now asks about your household\u2019s health coverage.<\/i><\/span><\/p>\n A New Form<\/b><\/span><\/p>\n If you bought a plan through the Health Insurance Marketplace, you should have received an IRS Form 1095-A <\/b>by January 31, 2015. If you have not received it by now, contact the marketplace where you signed up for coverage; don\u2019t contact the IRS. <\/span><\/p>\n The Form 1095-A, which is issued by the marketplace, contains several types of information, including details about you, your policy, household individuals covered, your monthly premiums, and any advance credit payments<\/i> you received (this would have occurred during enrollment).<\/span><\/p>\n Premium Tax Credits<\/b><\/span><\/p>\n The ACA built in provisions for individuals who could not afford even a lower-tier health insurance policy \u2013 Premium Tax Credits (PTC) <\/b>— to ensure that all taxpayers would be able to buy coverage. This formula involves comparing your income to the Federal Poverty Line (FPL)<\/b>. Your marketplace should have notified you about your PTC status. However, if your household situation changed between the estimates made during the enrollment period and your IRS income tax preparation (due to divorce, income increase or decrease, etc.), you\u2019ll need to see if you are still eligible. To do so, fill out a Form 8962<\/b><\/span><\/a>.<\/span><\/p>\n Figure 2: You\u2019ll need to complete a Form 8962 to see if you can claim the Premium Tax Credit.<\/i><\/span><\/p>\n Basically, the IRS is trying to calculate the amount of tax credit you should receive. If there is a difference between any advance credit payment made and the new, calculated Premium Tax Credit, you may receive a refund \u2013 or be required to repay the excess.<\/span><\/p>\n Warning: The Form 8962 is a complicated new form, so there is bound to be some confusion. You may want our help with it.<\/b><\/span><\/p>\n Exemptions and Penalties<\/b><\/span><\/p>\n If you did not have health insurance in 2014, the IRS will assess what\u2019s called an individual<\/i> shared responsibility payment<\/i>. In other words, a penalty. For tax year 2014, that payment would amount to whichever of these is greater:<\/span><\/p>\n There are exceptions, though. For example, you may be granted an exemption if your household income is below the return filing threshold or if there was only a short coverage gap. If you have received an exemption, you\u2019ll need to complete and file a Form 8965<\/span><\/a> with your 1040. <\/span><\/p>\n\n
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