What You Need to Know About 2014 Taxes and Your Health Insurance

Confused filing your taxes in 2014 and showing you had health coverage?  You're not alone!  Here are the answers to the question we hear the most.

New check box on this year's tax form
When filing your 2014 federal income tax return, you'll see a new box asking if you had health care coverage last year.  If you were covered in 2014, you must check this box on the tax form so you won’t pay a penalty.

New tax forms 
1095-A   1095-B   1095-C

1095-A will be sent out in early February to everyone who enrolled through the marketplace. If you don't want to wait, you can also download a copy from your marketplace account online.

1095-B - This form shows that you have minimum essential coverage.  These forms will be sent to all fully insured members by the insurance company NEXT year.  These forms are not required until 2015 tax year.

1095-C - Applies to large employer groups. These forms are not required until 2015 tax year.

No special form needed for 2014 taxes if your coverage was NOT through the marketplace
Tax software programs may tell you that your health insurer will send them a form to submit with their taxes to show proof of coverage.  This is not true for the 2014 tax year filing.  You do not need to submit a form.  Most insurance companies are not sending members a form this time, because it's not needed until 2015. So, for next year's 2015 tax return, you will get a form showing you had coverage.

What are the penalties
Penalties for not having health care coverage during 2014 are as follows:
$95 for an adult
$47.50 per child
Maximum of $285 or 1% of a household’s income for a family
In some cases, a person may be exempt from having coverage and not have to pay a penalty. Your clients can visit this Internal Revenue Service (IRS) website  to learn more about that.

Information from:
Anthem Broker updated January 27,2015; "We’re telling members what they need to know about their taxes and health insurance"
https://www.healthcare.gov/taxes/marketplace-health-plan/ "If you had a health plan through the Health Insurance Marketplace in 2014"

Tiffany Geiger, President, Creekstone Benefits