The Treasury department and IRS confirmed those who filed using an incorrect 1095-A will not be charged additional taxes based on the corrected forms. This applies to both the federal exchange HealthCare.Gov and the state exchanges. UPDATE: 2019: While this page was written in 2015 and applies first and foremost to the 2014 plan year, the information…
Health insurance tax credits are based on Modified Adjusted Gross Income. Social Security survivors benefits only count toward MAGI of tax filers.
You probably owe the Individual Shared Responsibility Payment since you only had qualifying health coverage for 5 months out of the year. This fee is charged on your year-end tax return. You could also owe money if you didn’t claim exemptions on form 8965, or you received too much money in tax credits up front.
We explain how to file your taxes if you got an incorrect 1095-A, didn’t get a 1095-A, or didn’t get an Electronic Confirmation Number.
You can use any 330 day period outside the US for ObamaCare’s travel exemption. This means you can have two exempt periods in the same year of 12 months each.
A Health Reimbursement Arrangement (HRA) doesn’t affect premium tax credits, but a Employer Payment plan is excluded from an employee’s gross income and affects tax credits in that way (tax credits are based on Modified Adjusted Gross Income).
The ACA doesn’t directly affect tax brackets, however Americans can use a Health Savings Account to lower their household income. This can help them qualify for more cost assistance and potentially lower the rate at which they are taxed
Social Security payments are deducted from AGI, but added back in for MAGI. Therefore they generally do count as income for ACA cost assistance.
The IRS does allow you to make incremental payments. Just make sure to file all your forms, including ACA related forms, before applying for a payment agreement.
Under the ACA you can take tax deductions for medical and dental expenses that exceed 10%* of your annual Adjusted Gross Income using a Form 1040, Schedule A. This includes deductions for most medical and dental costs for you, your spouse, and your dependents. Most people won’t take this deduction, but if you’ve had a…
When you enrolled you got cost assistance based on your projected income for the year, if you made more then you may have to pay back tax credits.
When you pay the tax penalty it goes toward healthcare spending on ACA subsidies, Medicare, Medicaid, and other federal and state healthcare programs.
There was an increase to the Medicare tax, if you are a higher-earning employee this may account for the paycheck deduction. It could also be related to paying into employer-sponsored coverage.
Nothing in ObamaCare (the Affordable Care Act) prevents you from filing for a tax extension using form 4868. There is no ACA related penalty for filing the extension.
If you would have paid the fee, but were exempt from the fee, you still qualify for the extra enrollment period March 15 – April 2015. You’ll need to attest to this situation when you apply for the Special Enrollment period through the Marketplace.
If you filed your taxes using an incorrect ACA tax form (or your taxes were done incorrectly) and paid more than you should follow the IRS process for appealing a tax dispute.
Any disparities between actual income and what’s reported on a person’s marketplace application will turn up when that person files their next tax return. Cost assistance that was given that should not have been will have to be repaid to the government.
Taxable social security payments, IRA contributions, and taxable IRA interest aren’t deducted from Modified AGI. Your Modified AGI is used to determine subsidies.
You are exempt from the tax penalty if you spent at least 330 full days outside of the U.S. in a 12 month period. You will apply for this exemption while filing your 2014 tax return.
Generally, if you or your dependent didn’t have marketplace coverage then you answer no to Marketplace related questions.
ObamaCare’s Cadillac Tax is a 40% excise tax on high end plans above $10,200 for individuals and $27,500 for family coverage that was set to start in 2018 but was been delayed. This tax is not deductible. The excise tax is one of the main revenue sources for the ACA, helps curb healthcare costs, and…
Second Lowest Cost Silver Plans and Lowest Cost Bronze Plans Explained The Second Lowest Cost Silver Plan (SLCSP) is a plan on each state’s Marketplace used to determine cost assistance for ObamaCare. Likewise, the Lowest Cost Bronze Plan in each state’s marketplace is used to determine affordability. This page covers everything you need to know about Second…
How Repaying ObamaCare’s Premium Tax Credits Works If your income changes, you may have to pay back Advanced Premium Tax Credit Payments up to the Advanced Tax Credit Repayment Limit based on your income. If you don’t claim enough money to qualify for tax credits, then you won’t owe back anything. TIP: This page covers Advanced Premium…
Under ObamaCare, you are allowed one short coverage gap exemption which covers less than three months in a row without coverage each year. In other words, you are exempt for two full months but need to have coverage for at least one day of the third month. Beyond the short coverage gap exemption, there are other…
If you don’t have your 1095A form you can view it online. You can also contact the Marketplace Call Center if you find any errors on your 1095A.