This year, there are some changes to tax forms related to the Affordable Care Act. Along with a few new lines on existing forms, there will also be two new forms that will need to be included with some tax returns. While most taxpayers will simply need to check a box on their tax return to indicate they had health coverage for all of 2014, there are also new lines on Forms 1040, 1040A, and 1040EZ related to the health care law.
To help navigate these changes, taxpayers and their tax professionals should consider filing their return electronically. Using tax preparation software is the best and simplest way to file a complete and accurate tax return as it guides individuals and tax preparers through the process and does all the math. There are a variety of electronic filing options, including IRSFree File for taxpayers who qualify, commercial software, and professional assistance.
Here is information about the new forms and updates to the existing forms:
Form 8965, Health Coverage Exemptions
• Complete this form to report a Marketplace-granted coverage exemption or claim an IRS-granted coverage exemption on the return.
• Use the worksheet in the Form 8965 Instructions to calculate the shared responsibility payment.
Form 8962, Premium Tax Credit
• Complete this form to reconcile advance payments of the premium tax credit, and to claim this credit on the tax return.
Additionally, if individuals purchased coverage through the Health Insurance Marketplace, they should receive Form 1095-A, Health Insurance Marketplace Statement, which will help complete Form 8962.
For more information about your individual 2014 income tax return, please contact me at lancewgurel@gurelcpa.com
