The biggest change to Federal income tax filing this year will be the Affordable Care Act. I predict that, by the end of this tax season, we will all be wishing Congress has adopted Universal Medicare coverage instead of the convoluted compromise that is the current law.
The major provisions of the Affordable Card Act will be administered through the individual tax return Form 1040.
First, most of you can expect to receive Form 1095-A, 1095-B or 1095-C to report if you had qualifying health coverage for some or all months during 2014.
That information funnels to Form 8965, a supporting form for Form 1040 and which enforces the Individual Shared Responsibility Provision. You and each member of your family for each month are required to have qualifying health insurance (minimum essential coverage). If you do not, unless you have an exemption, you will pay a penalty which is calculated into the income tax you owe or the refund you would otherwise receive.
Taxpayers who purchased health insurance coverage through a marketplace may be eligible for the Premium Tax Credit if their income falls below a certain level. If you received advance payments during the year, those are subtracted from the Premium Tax Credit. However, either way, you must file Form 8962 in order to claim the credit.
For now, be on the lookout for Form 1095; it will be key to filing your 2015 Federal Tax return.
