I had Obamacare for 5 months last year. I am filing my taxes right now, and after entering information into my form 1095-A, I ended up owing money! I am a college student who is working part time. This is the first year that I have had to pay money to the IRS. How is having Obamacare helping me? I didn’t even use the insurance which I paid for. Please explain to me and help me understand.
If you owe money on your taxes due to ObamaCare it's for going without coverage or an exemption for a given month, or getting too many tax credits up front.
If, in 2014, you only had adequate coverage for 5 months out of the year, you would have to pay the Individual Shared Responsibility Payment. This is probably the money that you noticed you ended up owing to the IRS.
If you owe money for Obamacare on your tax returns you may need to file the 8965 exemptions form. You need to claim exemptions for the months you didn't have coverage. If you can't claim exemptions for a given month, follow the 8965 directions for how to pay the fee. Also, if you got tax credits, and then claimed more income than you projected on your Marketplace application, you could end up needing to repay excess tax credits up to the limit.
As a college student, it's likely that you may qualify to remain on your Parents' health care plan (until you're 26) or to purchase a qualifying student group plan from your school.
Also, it's important to understand that health insurance is not something that you should plan on purchasing when you need it – the entire point is that, because you never know when you might suddenly accrue medical expenses, you should be sure to have coverage all the time.
For more information about how the Affordable Care Act helps you, please visit our page on The Benefits of ObamaCare.