Tax season can be stressful! Don’t get caught off guard by health insurance info you are required to provide when filing.
Even though the tax law changed this year, it will not affect 2017 tax returns (due April 17, 2018). In addition, penalties for not having health coverage will stay in place until 2019. To receive your tax refund, you’ll need to report information about your healthcare coverage.
The way you report your coverage to the IRS depends on your specific health coverage. Here are four common questions regarding health insurance coverage and taxes:
Why do I need to report my healthcare coverage?
- If you do not include healthcare coverage information, your tax return could be delayed.
What if my employer provides me with healthcare?
- If your employer provides you with healthcare coverage, all you are required to do is check a box on your return, according to the IRS. The box is found on the line labeled “Healthcare, individual responsibility,” and indicates full year coverage.
What if I purchase my insurance through the marketplace?
- If you purchased health insurance through HealthCare.gov, you will need to report this using Form 1095-A, Health Insurance Marketplace Statement. This form notes who is covered and the length of coverage. Your insurance provider should mail this form to you so you can file your return correctly.
What if I do not have health coverage?
- If a financial situation or other circumstance prevented you from getting health insurance, you might qualify for a hardship exemption. If you qualify for this exemption, you won’t be required to pay a fee for the months you lacked coverage. Find hardship exemptions and forms here.
- If do not qualify for a hardship exemption, or you were able to afford coverage and did not attain it, you are responsible for the individual shared responsibility payment (also known as a fine or mandate). The fine must be paid for any month that you, your spouse, or dependents didn’t have qualifying coverage. You can use the Individual Shared Responsibility Provision – Payment Estimator from the IRS to estimate your payment.
For more detailed information, visit this IRS resource: HealthCare Law & Your Tax Return
Our physicians know how confusing healthcare can be. Sometimes, you just need a friendly professional to walk you through it step by step. Feel free to stop by Wiley’s to ask questions about your health insurance!