How Health Insurance Can Affect Your Taxes

Medical insurance and health care money conceptTaxes and Health Insurance

Tax season is here, and if you are filing your taxes, you may find a new section that asks about your health insurance coverage. Your 2014 taxes are the first taxes to make you pay a fine for not having health insurance. Knowing how to properly navigate your taxes can help to ensure that you properly file your taxes and do not have to face an audit.

If you had health insurance through your employer, or a private insurance company for the entire 2014 year, doing your taxes will not be much more difficult. All you will have to do is simply check a box showing that you had the minimum amount of essential coverage required for the entire year.

If you had health insurance through a government marketplace plan, you will need a 1095-A form, which will come in the mail. You will also have to fill out a new form, known as Form 8962, which will calculate the amount of the credit that you may receive if you got health insurance through the marketplace and qualify for a premium tax credit. In order to qualify for the tax credit and calculate how much it will be, you must estimate your income for 2014 when you bought the policy through the marketplace.

If you did not have health insurance for 2014, and did not have an exemption, you will most likely have to face a heavy fine. Even if you did have an exemption, you will still have to check the box that shows that you did not have coverage.

For more information on health insurance and taxes, contact Desert Empire Insurance in Palm Desert, California. We will work with you to ensure that you have the right amount of health insurance coverage, all at the right price.