The Affordable Care Act and Tax Filing

Due to the Affordable Care Act, you will see some changes to your tax return.  This is the first year that you will be asked to answer basic questions regarding your health insurance.  A majority of taxpayers, approximately 75%, will only need to check a box indicating that they had health coverage in 2014.  The remaining taxpayers have health coverage through the health insurance marketplaces or decided not to enroll for coverage.

Those with coverage through the marketplace will receive a Form 1095-A which will be used to reconcile their premium cost and the financial assistance they received. Any adjustments will be reflected on their tax returns.  Individuals that can afford health insurance and chose not to will pay a fee.  Others that can’t afford coverage or meet other conditions, can receive an exemption.