Affordable Care Act – What to Expect

Starting in 2014, the individual shared responsibility provision calls for each individual to either have minimum essential coverage for each month, qualify for an exemption or make a payment when filing his or her federal income tax return.

There are some changes to tax forms related to the Affordable Care Act. For the first time, you will report health care coverage on your tax return. Most taxpayers simply need to check a box indicating they had qualifying health care coverage for the entire year. However, some taxpayers will have to file a new form to claim an exemption from the requirement to have health care coverage. Taxpayers who do not have qualifying health care coverage and who do not qualify for an exemption will need to make an individual shared responsibility payment when they file their tax returns. Some taxpayers who enrolled in coverage through the Marketplace may be allowed the premium tax credit and must file a tax return to claim the credit and to reconcile any advance payments made on their behalf in 2014.

Taxpayers who did not maintain coverage throughout the year and meet certain criteria may be eligible to obtain an exemption from coverage. How an individual obtains an exemption depends upon the type of exemption. Some exemptions can be obtained only from the Marketplace other exemptions are claimed only when you file your tax return, and yet others can be obtained from the Marketplace or claimed when you file your tax return.

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