Subsidy APTC Verification and Tax Forms
#8962, #1040 & #1095

It’s great to get premium subsidies if you earn less than 400% of Federal Poverty Level.  However, the final thing, is that it’s all governed by the IRS rules and forms.  It’s not what Covered CA says at the beginning of the year when you enroll, it’s what ends up on your tax forms at the end of the year that matters.  IMHO it can be a lot of hocus pocus, with smoke and mirrors.  It’s not what anyone tells you over the phone.

Here’s the forms:  

Be sure to file your taxes on time, even if there are problems with Covered CA sending you the correct 1095 A or you risk losing subsidies in the future –  CA Health Line 8.25.2015

Tax Estimators

turbotax.com   ♦  H & R Block  ♦  Efile.com

FREE software

To do your taxes if  you earn less than $60k   AGI – Line 37   double check at wikipedia and  IRS.Gov/FreeFile.  If you earn more, you can find the forms below or at the IRS website.

irs.5187
IRS 5187 New for 2014 – Health Care Law

 

Tax Guide Publication # 17 288 pages
Tax Guide Publication # 17 Most Current Edition  288 pages
Premium Tax Credit - Publication 974
Premium Tax Credit – Publication 974

FAQ’s

Kaiser Foundation FAQ’s for 2014 Taxes

Kaiser Permanente Reminder to do 2014 Taxes

Child Pages – Tax Forms, Publications, Etc.

 

 

Instant Complementary Health Insurance Proposals, Quotes, Subsidy Calculation and ONLINE Enrollment

 

Insure Buy International Medical Coverage

InsuBuy International Medical Coverage – Instant Quotes & Enrollment

 

Breaking News

IRS ignoring 60% of phone calls CNBC 3.31.2015  so, we have most everything you want posted here.

CNN 4.27.2015 reports that H & R Block reports average refund lowered by $729 due to under reporting MAGI income.

1.12.2015 CA Health Line on ACA and tax issues if there is a change in income.  ♦  My own CPA’s – Bruce Bialosky thoughts on TownHall

IRS budget cuts, fewer employees, forget calling them  LA Times 1.16.2015

 

The Premium Tax Credit – The Basics 

If you – or anyone on your federal tax return enrolled in health insurance coverage through the Health Insurance Marketplace, you may be eligible for the premium tax credit.

Here are some basic facts about the premium tax credit.

What is the premium tax credit?

The premium tax credit is a credit that helps eligible individuals and families with low or moderate income afford health insurance purchased through the Health Insurance Marketplace.

What is the Health Insurance Marketplace?

The Health Insurance Marketplace is the place where you will find information about private health insurance options, purchase health insurance, and get help with premiums and out-of-pocket costs, if you are eligible. Learn more about the Marketplace at HealthCare.govHow do I get the premium tax credit? When you apply for coverage, the Marketplace will estimate the amount of the premium tax credit that you may be able to claim for the tax year, using information you provide about your family composition and projected household income. Based upon that estimate, you can decide if you want to have all, some, or none of your estimated credit paid in advance directly to your insurance company to be applied to your monthly premiums.

If you choose to have all or some of your credit paid in advance, you will be required to reconcile on your income tax return the amount of advance payments that the government sent on your behalf with the premium tax credit that you may claim based on your actual household income and family size. You must file an income tax return for this purpose even if you are otherwise not required to file a return.

You’ll file Form 8962, Premium Tax Credit, with your tax return to claim or reconcile the credit. Failing to file your tax return will prevent you from receiving advance credit payments in future years. Filing electronically is the easiest way to file a complete and accurate tax return.

What happens if my income or family size changes during the year?   The actual premium tax credit for the year will differ from the advance credit amount estimated by the Marketplace if your family size and household income as estimated at the time of enrollment are different from the family size and household income you report on your return. The more your family size or household income differs from the Marketplace estimates used to compute your advance credit payments, the more significant the difference will be between your advance credit payments and your actual credit.

Visit the PTC Eligibility page on IRS.gov/aca or use our interactive tool, Am I eligible to claim the Premium Tax Credit? on IRS.gov to determine your eligibility.

For more information about the Affordable Care Act and your income tax return, visit IRS.gov/aca.

 

Affordable Care Act: Tax Facts for Individuals and Families

The Affordable Care Act includes the individual shared responsibility provision and the premium tax credit that may affect your tax return. This year marks the first time that certain taxpayers will receive new health-care related information forms that they can use to complete their tax return and then keep with their tax records.

Information Forms – Forms 1095-A, 1095-B and 1095-C

Depending upon your specific circumstances, the Health Insurance Marketplace, health coverage providers, and certain employers may provide information forms to you early in 2016. These forms can help you accurately report health coverage information for you, your spouse and any dependents when you file your 2015 individual income tax return in 2016. The Marketplace, health coverage providers, and employers will also file these forms with the IRS.

The information forms are:

  • Form 1095-A, Health Insurance Marketplace Statement: The Health Insurance Marketplace sends this form to individuals who enrolled in coverage there, with information about the coverage, who was covered, and when.  This is the second year in which the Marketplace is issuing Form 1095-A to enrollees.
  • Form 1095-B, Health Coverage: Health insurance providers – for example, health insurance companies – send this new form to individuals they cover, with information about who was covered and when.
  • Form 1095-C, Employer-Provided Health Insurance Offer and Coverage: Certain employers send this new form to certain employees, with information about what coverage the employer offered. Employers that offer health coverage referred to as “self-insured coverage” send this form to individuals they cover, with information about who was covered and when.

The list below highlights key elements regarding these information forms:

  • The deadline for the Marketplace to provide Form 1095-A is February 1, 2016.
  • The deadline for coverage providers to provide Forms 1095-B and employers to provide Form 1095-C is March 31, 2016.
  • If you are expecting to receive a Form 1095-A, you should wait to file your 2015 income tax return until you receive that form.
  • Some taxpayers may not receive a Form 1095-B or Form 1095-C by the time they are ready to file their 2015 tax return. It is not necessary to wait for Forms 1095-B or 1095-C in order to file. Taxpayers may instead rely on other information about their health coverage and employer offer to prepare their returns
  • These new forms should not be attached to your income tax return.

See our questions and answers that explain who should expect to receive the forms, how they can be used, and how to file with or without the forms, and that address various other questions you may have about these new forms.

Premium Tax Credit

For an explanation of the Premium Tax Credit see IRS Fact Sheet 2016-05, entitled “Tax Credit Helps Make Health Insurance Affordable for Middle-Class Americans.”

More Information

 

Remember that filing electronically with tax preparation software is the quickest and easiest way to file a complete and accurate tax return, as the software guides you through the filing process and does all the math for you.

For more information about the premium tax credit or the individual shared responsibility payment, visit IRS.gov/aca. For more information about the Marketplace, visit HealthCare.gov. For more information on the new health care related information forms, see the Form 1095 questions and answers.

 

How the Taxpayer Advocate Service Can Help

The Taxpayer Advocate Service is an independent organization within the Internal Revenue Service. We protect taxpayers’ rights by ensuring that all taxpayers receive fair treatment. We can also help you to know and understand your rights under the Taxpayer Bill of Rights.

What is the Taxpayer Bill of Rights?

The Taxpayer Bill of Rights describes ten basic rights that all taxpayers have when dealing with the IRS. Our taxpayer rights webpage can help you understand what these rights mean to you and how they apply. These are your rights. Know them. Use them.

Our site at taxpayeradvocate.irs.gov also can help you with common tax issues and situations: what to do if you made a mistake on your tax return, if you got a notice from the IRS or you’re thinking about hiring a tax preparer.

What can a Taxpayer Advocate do for you?

We can help you resolve problems that you can’t resolve with the IRS. And our service is free. Always try to resolve your problem with the IRS first, but if you can’t, then come to the Taxpayer Advocate Service. The best thing you can do is act now!

  • We help individuals, businesses, and exempt organizations. If you qualify for our help, your advocate will be with you at every turn and do everything possible.
  • You may be eligible for our help if your IRS problem is causing financial difficulty or you believe an IRS procedure just isn’t working as it should.
  • We have offices in every state, the District of Columbia, and Puerto Rico. Your local advocate’s number is in your local directory and at taxpayeradvocate.irs.gov. You can also call us at 1-877-777-4778.

We also handle large-scale problems that affect many taxpayers. If you know of one of these broad issues, please report it to us at irs.gov/sams.

The Taxpayer Advocate Service is your voice at the IRS.

Each and every taxpayer has a set of fundamental rights they should be aware of when dealing with the IRS. These are your Taxpayer Bill of Rights. Explore your rights and our obligations to protect them on IRS.gov.

IRS YouTube Videos:

IRS Podcasts:

IRS Tax Tip 2016-59

Issue Number:    HCTT-2016-18

Inside This Issue

Reporting Health Coverage on IRS Tax Forms

While most taxpayers will simply need to check a box on their tax return to indicate they had health coverage for all of 2015, there are a few forms and specific lines on Forms 1040, 1040A, and 1040EZ that relate to the health care law.

To help navigate health coverage reporting, you should consider filing your return electronically.Using tax preparation software is the best and simplest way to file a complete and accurate tax return as it guides you through the process and does all the math. There are a variety of electronic filing options, including free volunteer assistance, IRS Free File for taxpayers who qualify, commercial software, and professional assistance.

Here is information about reporting health coverage:

Form 8965, Health Coverage Exemptions

  • Complete this form if you need to claim a coverage exemption on your return or report a Marketplace-granted coverage exemption.
  • Use the worksheet in the Form 8965 Instructions if you need to calculate the shared responsibility payment.

Form 8962, Premium Tax Credit

  • Complete this form to claim this credit on your tax return, and to reconcile advance payments of the premium tax credit.

Form 1095, Health Care information Forms

  • If you enrolled in coverage through the Health Insurance Marketplace, you should receive Form 1095-A, Health Insurance Marketplace Statement, which will help complete Form 8962. Wait to file until you receive this form.
  • Your health coverage provider or your employer may furnish you with a Form 1095-B, Health Coverage, or Form 1095-C, Employer-Provided Health Insurance Offer and Coverage. You do not have to wait to receive these forms before your file your tax return.
  • See our questions and answers for more information about how these forms affect your tax return.

Form 1040

  • Line 46: Enter advance payments of the premium tax credit that must be repaid
  • Line 61: Report health coverage or enter individual shared responsibility payment
  • Line 69: Report net premium tax credit if the allowed premium tax credit is more than advance credit payments paid on your behalf

Form 1040-A

  • Line 29: Enter advance payments of the premium tax credit that must be repaid
  • Line 38: Report health coverage or enter individual shared responsibility payment
  • Line 45: Report net premium tax credit if the allowed premium tax credit is more than advance credit payments paid on your behalf

Form 1040-EZ

  • Line 11: Report health coverage or enter individual shared responsibility payment
  • Form 1040EZ cannot be used to report advance payments or to claim the premium tax credit

For more information about the Affordable Care Act and filing your 2015 income tax return visit IRS.gov/aca. Visit IRS.gov for more information on this topic if you file Form 1040-NR or 1040-NR-EZ.

 

Historical

More draft tax forms for 2014

Draft 1040 for 2014

Check out IRS Publication 5187 Health Law – What’s New – it’s a really informative pamphlet on the new rules under Health Care Reform and Subsidies.

Claim the Premium Tax Credit & Reconcile Advance Credit Payments on Your 2015 Income Tax Return

You may be eligible to claim the premium tax credit on your 2015 income tax return. The premium tax credit helps eligible individuals and families with low or moderate income afford health insurance. Millions of people who purchased their coverage through a health insurance Marketplace are eligible for premium assistance through the premium tax credit, which individuals chose to either have paid upfront to their insurers as advance payments to lower their monthly premiums or receive when they file their taxes.

If you received the benefit of advance credit payments, you must file a federal tax return and reconcile the advance credit payments with the actual premium tax credit you are eligible to claim on your return.  Failing to file your tax return to reconcile advance payments will prevent you from receiving advance credit payments in future years.

You will use IRS Form 8962, Premium Tax Credit (PTC) to make this comparison and to claim the credit. If your advance credit payments are in excess of the amount of the premium tax credit you are eligible for, based on your actual income, you must repay some or all of the excess when you file your return, subject to certain caps.

If you or anyone on your tax return enrolled in health coverage through the Health Insurance Marketplace, you should receive Form 1095-A, Health Insurance Marketplace Statement from your Marketplace form by early February. Use the information from Form 1095-A to file your taxes accurately. This information includes the name of your insurance company, dates of coverage, amount of monthly insurance premiums for the plan you and other members of your family enrolled in, amount of any advance payments of the premium tax credit for the year, and other information needed need to compute the premium tax credit.

Using tax preparation software is the best and simplest way to file a complete and accurate tax return as it guides individuals and tax preparers through the process and does all the math. Electronic filing options include IRS Free File for taxpayers who qualify, free volunteer assistance, commercial software, and professional assistance.

More Information

Visit the PTC Eligibility page on IRS.gov/aca or use our interactive tool, Am I eligible to claim the Premium Tax Credit? on IRS.gov to determine your eligibility.

For more information about the Affordable Care Act and filing your 2015 income tax return, visit IRS.gov/aca.

Subscribe to IRS Tax Tips to get easy-to-read tips via e-mail from the IRS.

We do NOT give tax or legal advise!  Only links and excerpts of the law or Insurance Company Bulletins.

 

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