season Taxation is there. As you gather your W2, tax returns, and revenue, there is an additional piece of documentation you will need this year - your health information. While most filers will simply check an additional box on Form 1040, some taxpayers will have some steps. What should you do?
Here are five common groups who will report health care on your taxes this year.
1. You were covered by health insurance last year
If you had health insurance coverage of the year, all you have to do when the tax is check a box on your form 1040.
If you have received coverage through an employer, or have been covered by Medicaid or Medicare, you are finished.
However, if you were part of the uninsured year, bought a cover on your own, or are a small business owner, you can have a couple more steps . Keep reading.
2. You were uninsured last year, or part of the year
If you were insured all of last year or uninsured for part of the year, you may be required to pay [responsibility individual shared pain . That is, if you do not qualify for an exemption.
How much are the fees?
In 2014, the fine is the highest of $ 95 for each adult and $ 47.50 per child (up to $ 285 per family) or 1% of family income less federal tax reporting threshold. The federal income tax threshold is $ 10.150 for a person who individually deposited $ 20,300 to anyone who files jointly.
What if I was only Uninsured part of the year?
Furthermore, the fine is assessed on the basis of "months of coverage." This means that every month you are uninsured, you may have 1 / 12th of the annual fine. However, short periods of being uninsured can not be subject to a fine (see exceptions below).
What are the exemptions?
If you were insured, there are several exemptions to the penalty include:
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you can not afford coverage (defined as those who pay more than 8% of their household income for the lowest bronze plan costs available to them by the market)
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are not a US citizen, US national or resident alien legally in the US
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was a gap in covering less than 3 consecutive months during the year
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not file a tax return because your income is below the reporting threshold income (in 2014, the income tax threshold is $ 10.150 for individuals and $ 20,300 for a couple)
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are unable to qualify for Medicaid because your state has chosen not to expand the program
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Participate in a ministry of health care sharing or are a member of a recognized religious sect of objections to health insurance
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are a member of an Indian tribe recognized by the federal government
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incarcerated
others who do not qualify through these categories, but have experienced difficulty making it difficult to take out insurance may request through the insurance market for an exemption from the obligation of individual responsibility. Learn more about exemptions difficulties here.
3. You have received (or applying) a premium tax credit
If you received a tax credit on premiums, or apply for one, you will file an additional form - form 8962. on this train you with information on your family size, income from real household, what you paid for health insurance, and the amount advanced tax credit premium you received.
form uses this information to reconcile the amount of your tax credit on the premiums you are eligible for any credit advanced premium tax that you received.
If your actual income is different from what you felt when you bought the insurance, you may be required to repay part of the credit -. or receive a refund
learn about how to deal with the premium tax credit on your taxes here.
4. You own a business
If you own a business, you may have to report the cost of coverage of health insurance Forms W2 employees.
This requirement began in 2012 and is applicable to your business if you have more than 250 employees W2, and offers group health coverage sponsored by the employer.
At this time, W-2 reporting is option for small employers and for employers offering health insurance alternatives such that no reimbursement from health insurance.
more reports on W2 .
5. You are self-employed
Finally, if you're self-employed, you may be able to take a deduction for your Medicare premiums . Although this is not a new option of the tax on health care, it is worth remembering that many independent taxpayers can deduct health insurance premiums, including premiums based on age coverage of long term care.
deduction on line 29 of the return in 1040 is available for those whose business income shows a profit, that are not eligible for insurance provided by the employer (or from a side job or the work of a spouse), and meet other criteria.
Conclusion
Healthcare is now part of the taxes, but for many it is simple - check the box that you were covered the last year. However, if you were uninsured, received a tax credit on premiums, or are a small business owner, there are some new reporting requirements.
What questions do you have about health and taxes this year? Leave a comment and we'll help you answer them.
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