Do you have and understand your 1095-A, or Form 8962 needed to file with your IRS Tax Filing? If Not, learn more here:

Are you Ready to file yourTaxes for 2014?

The ACA marketplaces will allow Hispanics to purchase health coverage using tax credits.

The ACA marketplaces will allow Hispanics to purchase health coverage using tax credits.

With so much gossip out there about the New Taxes in 2014 and the new ACA taxes, specifically, we thought we would publish this review of Need to Knows:

The ACA law, mandates that each citizen have health insurance which includes:

  • Minimal Essential Health Coverage (MEHC)
  • Is it considered Affordable

Those who Do Not have coverage that meets the MEHC will need to:

  1. Prove and File an Exemption  (click here to understand who qualifies for an exemption.)
  2. Make an Individual Share responsibility Payment when they file their 2014 Tax Return.

Even though this year’s tax forms will essentially use the honor system and require people to answer whether or not they had health insurance in 2014, things will need to be much more precise when some consumers are asked to fill out Form 8962 or 8965 Form.

“What’s Form 8962?” you wonder? This handy-dandy IRS form asks you to input the amount of subsidies received, premiums paid, and income earned in 2014. If you weren’t insured for the entire year then you’ll get the task of breaking your subsidies, premiums, and income down on a month-by-month basis.

During Enrollment you had the choice of 2 Tax Credit (TC) Options:

  1. Get it NOW – via Advanced Premium Tax Credits (APTC)
  2. Get it LATER – via Premium Tax Credits (PTC)

This will need to be stated on the 1095A.

The 1095 A form is used to compute the tax credit on their IRS tax return, and reconcile the APTC made on their behalf, with the amount of the actual premium tax credit on Form 8962.

Reconciliation will need to be done.  Reconciliation is the responsibility of the consumer and is the means by which the consumer will determine whether the amount of premium assistance paid to insurance companies on their behalf, was more or less than the amount they qualified for

The IRS will look at 3 Areas:

  1. Income Stated vs. Project Income
  2. Household Tax
  3. APTC Paid to Qualified Health Plan (QHP) vs. Eligibility Amount

NOTE:

  • Those on Catastrophic, Medi-CAL and Group insured plans will NOT receive a 1095A form.
  • The Forms will begin to be mailed as of January 16th – January 31st, 2015.
  • If you do not have an online account, you will need to call 1-800-300-1506 to receive an Access Code or get a copy of the 1095 A form.
  • If incorrect data is on a form, contact the Covered California Service Center to report a change at 1-800-300-1506.
  • To obtain copies of your invoices, contact your Health plan for copies.
  • If you disagree with your APTC, you can fill out a dispute form which will be available online at www.CoveredCA.com
  • Click Here for additional Information
  • For More Up to Date Information visit:  www.IRS.gov/aca  
  • We HIGHLY Suggsest you contact a Certified Public Accountant or Tax Preparer to assist you with any detailed inquiries regarding your tax filings.

For assistance enrolling in or changing plans please feel free to contact us as your Agency of Choice:

Be Well Insurance Solutions
www.BeWellInsurance.com
P
hone:  408-615-1280
Email:  Information@BeWellInsurance.com

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