The Affordable Care Act: What you can expect on your 2015 return

March 4, 2016

How will the Affordable Care Act affect your 2015 federal income tax return? Here are four items to consider.

  • Premium tax credit. If you bought your health insurance policy on the healthcare.gov website, you may have received a tax credit. You could receive the credit in advance during the year as a reduction in your health insurance premium or claim it on your tax return. Either way, you need to file a tax return using the information on Form 1095-A, Health Insurance Marketplace Statement.
  • New information forms. This year, you may have received new-to-2015 forms from your insurance company or other health insurance provider, or from your employer. Forms 1095-B and 1095-C provide information about your health policy. You don't need to attach either of these forms to your federal income tax return and you can file before you receive them.
  • If you did not have health insurance during 2015, you'll owe a penalty unless you qualify for an exception. For 2015, the penalty is the greater of $325 per adult ($162.50 per child), up to a maximum of $975 for families, or 2% of your yearly household income above the filing threshold (capped at the price of a Bronze plan).
  • Net investment income surtax. This 3.8% surtax applies to income such as interest, dividends, and capital gains when your adjusted gross income (AGI) exceeds certain levels. Those levels, known as thresholds, are not adjusted for inflation. For 2015, if you are married filing jointly, the surtax applies when your AGI exceeds $250,000. If you're single or filing as head of household, the AGI threshold is $200,000.

Do you have questions about how to report your health insurance coverage? Contact us. We're here to help.

Keywords: aca, health care act
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