Triage Taxes: How Health Coverage Affects Your Taxes

When you file your taxes for 2015, you’ll need to include certain information about your health coverage, depending on the type of coverage you had.

You had Marketplace coverage in 2015:

If you enrolled in a health plan through HealthCare.gov or your state’s Health Insurance taxes-806396_640Marketplace, watch your mail for an important tax document called Form 1095-A—it’ll help you when you file your 2015 federal taxes. You also can download and print a copy from your Marketplace account on www.HealthCare.gov. Wait until you download or receive your 1095-A before you file your income tax return.

Double-check your Form 1095-A for things like the start and end date of your coverage and the number of people in your household, to make sure the information is correct. If you think anything is incorrect, visit www.HealthCare.gov/taxes to find out how to get a corrected Form 1095-A. Use information on your Form 1095-A to reconcile the difference between the amount of financial help you received with the actual amount you should have received based on your 2015 earnings. If you don’t file a tax return and reconcile your financial help, you won’t be eligible to receive it in the future.

You had coverage for all of 2015 through an employer, Medicare, Medicaid, the Children’s Health Insurance Program (CHIP) or coverage from another qualifying source:

If you and everyone in your household had coverage for the entire year through your employer, Medicare, Medicaid, CHIP or other qualifying coverage from another source, you’ll check a box on your federal income tax form that says you had coverage for all of 2015. You might get a tax document called a Form 1095-B or Form 1095-C from your employer, your insurance company, or from the government program that provides your coverage, like Medicare or Medicaid. You don’t need to attach it to your tax return or wait to get it before you fill out your tax return, but keep it in a safe place with your other tax records.

You didn’t have health coverage in 2015:

If you didn’t have health coverage for all or part of 2015, you may qualify for a health coverage exemption. Visit www.HealthCare.gov/exemptions-tool to see if you’re eligible for an exemption because you couldn’t afford coverage or if you met certain other conditions. If you get an exemption, you won’t have to pay the fee for not having coverage.

If affordable health insurance options were available but you chose not to enroll in coverage for 2015, and if you didn’t qualify for an exemption, you may have to pay a fee when you file your 2015 federal income taxes. The fee for not having health coverage in 2015 is $325 per person or 2% of your annual household income, whichever is higher. The fee for not having coverage in 2016 will be even higher—you’ll have to pay $695 per person or 2.5% of your income, whichever is higher.

Help is available:

  • For more information about how your Marketplace coverage will affect your taxes, visit HealthCare.gov/taxes or call the Marketplace Call Center at 1-800-318-2596. TTY users should call 1-855-889-4325.
  • Many people who signed up for Marketplace coverage can get free help with filling out their taxes. This may include free access to tax software programs, or free in-person assistance. For more information, visit IRS.gov/freefile or www.IRS.gov/VITA.

If you have questions about your taxes, visit www.IRS.gov.

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