Health Care Law Brings Changes to IRS Tax Forms
Posted by William Byrnes on January 14, 2015
The IRS announced that the tax forms for the 2014 tax year have some dramatic modifications to allow for enforcement of Obama Care (aka the “Affordable Care Act” and “ACA”).
Existing forms have new lines integrated and the IRS has created two new forms that some taxpayers must now file with the tax return.
Many taxpayers will only need to check a box on their tax return if they had the requisite health coverage for all of 2014 as require by the ACA so as to avoid penalties. Forms 1040, 1040A, and 1040EZ also have new lines to complete related to the health care law.
Two New Tax Forms for Taxpayers
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.
Modifications of Existing 2014 Tax Forms
- Line 46: Enter advance payments of the premium tax credit that must be repaid
- Line 61: Report health coverage and enter individual shared responsibility payment
- Line 69: If eligible, claim net premium tax credit, which is the excess of allowed premium tax credit over advance credit payments
- Line 29: Enter advance payments of the premium tax credit that must be repaid
- Line 38: Report health coverage and enter individual shared responsibility payment
- Line 45: If eligible, claim net premium tax credit, which is the excess of allowed premium tax credit over advance credit payments
- Line 11: Report health coverage and enter individual shared responsibility payment
- Form 1040EZ cannot be used to report advance payments or to claim the premium tax credit
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