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New Health Laws Yield New Taxs Forms- Part 1

by David Huff on January 23, 2015

As if tax forms were not already complicated, now you have to throw in the new healthcare laws.  On your 2014 tax form you will have to indicate if you had healthcare for the full year.  But that’s not all there is to do!

You will be receiving forms in the mail in January and you will have to calculate whether any subsidies you received through the health-insurance marketplace in 2014 were too high or too low in relation to your household income and family size. If you were uninsured for any part of the year you must determine whether you qualify for an exemption from the penalties you could incur.

Make sure you can document your coverage, if you had health coverage in 2014. Form 1095-B will be sent to you by your health insurer and it will indicate the names of covered individuals in your household. Form 1095-C is sent by large employers and will indicate whether your employer offered coverage and your share of the monthly premium. If you declined coverage because it was too expensive and bought insurance through the marketplace this form will help you determine if you were eligible for premium tax credits.  If your employer’s lowest cost plan was more than 9.5% of your 2014 income, you can claim premium tax credits.

NOTE:  The two forms are not mandatory for the 2014 tax year.  Some people who were covered will receive them and other will not. If you were fully covered and did not receive a form, you will need to check the box indicating your coverage.

Person Huff CPA Group will be happy to assist you in any way possible.  Contact us at 504-780-8299 or visit our website www.personhuffcpa.com.

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