New Tax Forms for Health Insurance Carrier
The Patient Protection and Affordable Care Act a/k/a “Obama Care”, has made requirements for health insurance carriers to provide new tax forms. Tax form 1095-B will be required to be issued by a health insurance carrier to report the type of coverage a participant has. Form 1095-C, issued by employers to all full-time employees, reports whether or not the employee was offered affordable health care coverage to avoid being charged a penalty. The deadline for submission of these forms has been extended to March 31, 2016.
The complicated changes that come from the enactment of the Affordable Care Act require strict attention to the requirements to avoid being penalized. For example, beginning in 2014, the individual shared responsibility provision calls for each individual to either have minimum essential coverage for each month, qualify for an exemption or make a payment when filing his or her federal income tax return. The IRS has posted a summary of Affordable Care Act tax provision on their website.
The fee for not having health insurance in 2016 is calculated 2 different ways – as a percentage of your household income, and per person. You’ll pay whichever is higher.
Percentage of income – 2.5% of household income
Maximum: Total yearly premium for the national average price of a Bronze plan sold through the Marketplace
OR
$695 per adult
$347.50 per child under 18
Maximum: $2,085
* https://www.healthcare.gov/fees/fee-for-not-being-covered/
If you need help with taxes you should seek out a good Certified Public Accountant (CPA) but if you have been audited or your being unfairly treated by the IRS you may need to seek out good legal advice. Contact our taxation attorney, Desiree Fralick for a consultation.
New Tax Forms for Health Insurance Carrier was last modified: February 9th, 2016 by Desiree Fralick