Tax law changes put in place by the 2010 health insurance laws are still taking effect. The changes include two new forms that may be part of your 2014 federal income tax return.
- Form 8962, Premium Tax Credit, is the form you’ll use to calculate the amount of the federal income tax credit for health insurance premiums that you’re eligible to claim. You may have received the credit in advance during 2014 as a reduction in your monthly health insurance premiums. Form 8962 will reconcile the amount you received with the amount you can take on your tax return. If changes in your income made the advance credit higher than the actual credit, you may need to repay some or all of the amount you received. If you could have claimed a greater amount during the year, the difference will reduce your tax or increase your refund.
The government health insurance marketplace will send you Form 1095-A. This statement provides the information you need to complete Form 8962.
- Form 8965, Health Coverage Exemptions, is used for claiming an exemption from the penalty for not having health insurance. You’ll file this form if you or your family members did not have a health insurance policy that met required coverage standards.
You may need to file a separate exemption application at the government health insurance marketplace in order to fill out Form 8965.
Give us a call so we can help make sure you have all the information necessary to complete these forms accurately.