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FILING YOUR 2014 FEDERAL TAX RETURN: DO YOU GET A CREDIT OR OWE A TAX? KNOW THE RULES ON THE AFFORDABLE CARE ACT

Beginning in 2014, the Affordable Care Act required that individuals must: (1) have health care coverage; (2) qualify for a health coverage exemption; or (3) make a shared responsibility payment with your tax return.

Have Health Care Coverage: If you had qualifying health care coverage (called minimum essential coverage) for every month of 2014 for yourself, your spouse (if filing jointly), and anyone you could or did claim as a dependent, you will check a box on your federal income tax return informing the IRS that you have coverage.

Qualify for a Health Coverage Exemption: Some individuals may qualify for coverage exemption. Some of the more common exemptions include: (1) unable to afford coverage because the minimum amount you must pay for premiums is more than 8% of your household income; (2) your household income is below the minimum threshold for filing a tax return; (3) you went without coverage for less than three consecutive months during the year; and (4) you are enrolled in certain types of Medicaid and TRICARE programs that are not minimum essential coverage. Use IRS Form 8965 to claim a coverage exemption on your tax return.

Make a Shared Responsibility Payment with Your Tax Return: If you didn't have health insurance and do not qualify for a health coverage exemption for every month of 2014, you will owe additional taxes which you will have to report on your income tax return. 

At Quatrinini Rafferty, we can prepare your tax return and guide you thru the complicated rules on the new Health Care insurance coverage law. Call Jim Horchak at 724 837 0080 to make an appointment. 

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