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One of the key components of the Affordable Care Act (ACA) is that everyone is required to obtain “minimum essential” health coverage in 2014 or pay a penalty. Minimum essential health coverage can be obtained through your employer, through the Health Insurance Marketplace (Exchange), through a health plan outside of the Marketplace or through a government sponsored program, provided you qualify for it.

If you had health insurance coverage in 2014:

  • You will report this simply by checking a box on your federal income tax form.
  • You will not have to fill out any additional tax forms.
  • You will not receive a Form 1095-A. Tax software programs may tell you that you that your health insurer will be sending you this form to submit with your taxes to show proof you had coverage. But, for 2014 tax filing, you don’t need to submit a form. (Next year, for your 2015 taxes, a form will be required.)   

If you did not have health insurance coverage three (3) months or more in 2014, one of the following will apply to you:

  • You will qualify for a health coverage exemption; or
  • You will pay a fee when you file your 2014 federal income tax return.

For 2014, your penalty for not having coverage will be the greater of $95 per adult and $47.50 per child under age 18, limited to a family maximum of $285 or 1% of your household income.    

For your 2015 taxes, employers, insurance companies and others who provide health insurance, will tell the IRS who they have insured. They will also provide you with a Statement of Minimum Essential Coverage (1095-B form) to file with your taxes as proof you had coverage for the 2015 tax year.   

For any tax-related questions, we encourage you to speak with your tax advisor. You can also learn more about this topic at the IRS website.

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