Every year Taxpayers balance their tax withholdings with their actual tax liability. They may get refunds for over payments or be required to make additional payments if their withholding was too low. Individuals participating in Marketplace healthcare coverage will follow the same process. Failing to make the appropriate payments for this tax will accrue penalties, however, in order to make the process as smooth as possible, the IRS is willing to waive these penalties for eligible tax payers under certain conditions provided the these penalties originated as a good faith effort to comply with the law (notice 2015-09 has more information). Your tax attorney can help you work with the IRS if you are facing penalties related to acquiring healthcare from the Marketplace.
In early February, you should receive Form 1095-A if you or anyone in your household enrolled in a Health Plan from a Health Insurance Marketplace. State or Federal marketplaces will fill out and send you this form. It is not a form you will complete yourself. You will need this form before you file to ensure a complete and accurate return. This form will tell you how to calculate your premium tax credit and reconcile any advance credit payments sent on your behalf to your insurance provider. If you are uncertain what your tax requirements are, please contact your tax attorney for more information.
Many people are still getting used to the new healthcare law as it applies to their taxes and this understandable. Most people will receive healthcare from their employer as before, and need to nothing extra. However, some people will need to purchase healthcare on the state or federal exchanges and you require documentation in order to satisfy IRS requirements. Failing to acquire healthcare will result in additional taxes. For more information about how your tax attorney can help you please contact us at 913-735-4829