Unless you have spent the last twelve months in a bubble, you have heard many news stories regarding the Affordable Care Act. As you prepare to file your income tax return here is an important tip if you receive your health insurance through work.
Check the health card box
Yes, that is correct. This box will need to be checked by approximately 75% of all taxpayers. It is your confirmation that you have health insurance through your workplace. It tells the IRS:
- You are not eligible to receive the new Premium (Health) Credit.
- You are not subject to the shared responsibility payment required for most taxpayers that have no health insurance.
If unchecked, you may pay a fee for having no health insurance (exceptions apply) or you will receive a Form 1095 indicating you have insurance through the Health Care Marketplace (the Exchange). Remember a Form 1095 is needed to be eligible for the Premium Health Credit.
So when reviewing your tax return, if you have health insurance through work, check that you have "checked" the box on your 1040 tax form.
THE GOOD NEWS? Beginning with 2019, the penalty for not having health insurance is suspended. So this could be the last reminder you will need in this area of the tax code.