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Affordable Care Act: Premium Tax Credit and Individual Shared Payment Reporting – Are you ready?

By taxingtimes on Feb 11, 2015 |

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Glass globe By:  Joe Zitzka

As we roll into tax filing season, have you considered how to handle the new Affordable Care Act reporting requirements?

For the 2014 tax year, taxpayers will now be required to report health care coverage on their tax returns.

There are two new reporting requirements that will impact many U.S. Individual Income Tax Returns for the 2014 tax year.  The individual shared responsibility payment and the premium tax credit will present new challenges for taxpayers.  Taxpayers will now be required to determine if they have qualifying health insurance or qualify for an exemption.  Taxpayers will also have to determine whether they qualify for the premium tax credit.

When preparing your Form 1040 for the 2014 tax year, taxpayers (unless an exemption applies) must confirm that they either have health insurance coverage throughout the year or make a payment with they file their federal income tax return.

In general, you may qualify for the premium tax credit if:

  1. You buy your health insurance through the Health Insurance Maketplace;
  2. Are not eligible for coverage through an employer or government plan;
  3. Are within certain income limits;
  4. Do not file a married filing separate return (unless you meet certain limited requirements); and
  5. Cannot be claimed as a dependent by another person.

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