Q & A and Tips on Accounting, Taxes and Personal Finance.

Health Insurance

February 22, 2016 | By More

health insurance Everyone must have health insurance in 2015 and everyone required to file a tax return must report their health insurance. This was true last year but there are additional changes for this year.

You will need proof of your insurance. In 2015, everyone covered by insurance should receive a Form 1095 — either 1095-A, 1095-B, or 1095-C . It is possible you and your family members will receive more than one. The 1095 forms are filed by the marketplace (1095-A), other insurers (1095-B), or by your employer (1095-C). The 1095 forms are filed by whomever provided you coverage, so individuals won’t have to fill these out themselves.

If you were not covered at any time during the year, you may have to pay a penalty unless you are entitled to an exemption. Some exemptions are claimed on the tax return and others require a certificate from the exchange. You cannot claim an exchange exemption without that certificate.

To obtain the exemption, individuals must first submit an application to the exchange along with the necessary documentation. The process takes at least two weeks and may take considerably longer if you wait and the process gets crowded.

To avoid delay of your refunds and to avoid complications in preparing your returns, please obtain your exemption immediately.

The full list of exemptions can be found at:
www.healthcare.gov/fees-exemptions/hardship-exemptions/

The application for exemption can be found at:
http://marketplace.cms.gov/applications-and-forms/hardship-exemption.pdf

Contributed by Catherine M. Patel – Enrolled Agent, Notary Public, California Real Estate Broker
Tax Matters is located in Tustin, California. For more information or to contact Catherine M. Patel, visit http://www.CaliforniaTaxMatters.com

Article information should not be used exclusively to make legal, financial or tax decisions. Because laws and rules can change frequently, topics may not always be updated to reflect these changes or may not apply to your unique situation. It’s prudent to seek out the advice of a professional for your specific needs.

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Category: Taxes

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