Anyone who purchased their health insurance in 2014 on the Health Care Exchange will need Form 1095-A to complete the tax return. This is MANDATORY. Taxpayers will be sent one automatically by the usual Jan 31st deadline for most tax forms. Parents who have adult children on their policies will have to make copies for those adult children so that those adult children can file because only one form will be mailed.
The other two forms, 1095-B and 1095-C are provided by insurance companies and employers. They are not required this year. Bring them to your tax appointment if you have them. I’m sure your tax preparer will appreciate it. Some preparers may request you bring in your health insurance cards as well. It could be a long tax season folks!
There are exceptions to the penalty for those who failed to get insurance. Some require a waiver from the Health Care website and can take 2-3 weeks to get. Others your tax preparer can get for you. IRS is expecting 20 million exemptions.
Those that received the credit in the exchange will have to reconcile the credit on their tax return. Some will have to return excess credit they received by way of additional tax owed. Some will receive an additional tax credit. Those without insurance will have to pay a penalty on their return. Many penalties will exceed the $95 that has been thrown about by politicians and the media.