Tuesday, March 14, 2017

Affordable Car Act (ACA) Shared Responsibility Forms

Shared Responsibility Payment Forms

Any gap in qualifying insurance coverage of three months or more for you or your dependents can impact you tax return this year and require you to pay an individual-shared-responsibility payment. Certain subsidized information about your coverage and cost is reported on your income tax return and is obtained from the information you provide or that is provided to yo by either your provider(s) or employer on IRS Form 1095 forms.

Exemptions

You may be exempt from this payment if, for example:

• Affordable coverage options are not offered by your employer
• The gap in insurance coverage is three or fewer consecutive months
• You belong to a group that is explicitly exempt from participating in the Affordable Care Act by the Internal Revenue Service (IRS) such as a health sharing ministry.  There are others that you may want to research.

Form 1095-A

Insurance companies participating in health care exchanges should provide you with the Form 1095-A, a health-insurance-marketplace statement. This form includes:
  • Your name
  • The amount of coverage you have
  • Any tax credits you were entitled to
  • If you used them to pay for your health insurance and the amount you paid for coverage
You use this information to complete your income tax filing, adjust any tax credit payments and claim any premium tax credits that may be due.

Form 1095-B

Employers with fewer than 50 full-time employees that offer health coverage, as well as health care insurance providers, send the Form 1095-B to members of their health insurance plans, as of the 2016 tax year. This form includes:
  • The type of coverage you have
  • Your dependents covered
  • The period of the coverage
This form is used to verify on your tax return that you and your dependents have at least Minimum Essential Coverage (MEC). If you had a break in health care coverage for the tax year, you may have to pay an individual shared responsibility payment.

Form 1095-C

Form 1095-C shows the coverage that is offered to you by your employer, as of the 2016 tax year. It is used by larger companies with 50 or more full-time or full-time equivalent employees. This form provides information of the coverage your employer offered and whether or not you chose to participate. You can use this to complete your tax return.

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