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- You can provide proof of health insurance when you file your federal tax returns
- There are three different IRS health insurance information forms
- Your employer or health insurance company should send these forms to you
- You are not required to send the IRS information confirming your health insurance status unless you qualify for tax credits through the marketplace
- However, it is a good idea to have documentation on hand in case you do need to show proof of insurance
- If you do not provide proof of health insurance to the IRS or if you do not have health insurance, you may be responsible for paying the individual mandate penalty fine
How do I prove I have health insurance?
You can report your health insurance status when you file your federal tax returns for the previous year. There are three different forms that the IRS uses to gather health insurance information. If you purchased your health insurance coverage through the marketplace exchange, you should file your health insurance form to file for tax credits you might qualify for.
You should wait until you receive these forms from your employer or health insurance company prior to filing your taxes for this year. You do not have to attach these forms to your tax return because it is not an absolute requirement for each individual taxpayer to report their health insurance status each year.
However, you should have your health insurance documentation on hand in case there is a request for documentation. This documentation includes your 1095 health insurance form, insurance cards, statements and list of benefits from your insurance company, any W-2 forms that list your health deductions, records of payments already made regarding your premium tax credits, and any other necessary documents.
If you qualify for a health insurance exemption, you may need to file that on your tax returns or document it on the healthcare marketplace.
What is form 1095-A?
Form 1095-A is sent to those who are enrolled in a plan through the healthcare exchange marketplace. It will be sent to you by the marketplace and it will provide the proper information about your coverage. You will use this form to help you fill out another IRS form 8962 to claim your premium tax credits.
The 1095-A form will tell you if you and your family had coverage for the entire year in which case you will check full year coverage on your other tax forms. It is not necessary to send the form 1095-A to the IRS, you should keep it for your own personal records.
What is form 1095-B?
The 1095-B form will be sent to you by your health insurance provider. It is typically for self-insured people who do not have insurance through the healthcare exchange marketplace or a large employer.
Those who receive coverage through government programs such as Medicaid or the Children’s Health Insurance Program will also receive a 1095-B form.
You will also use this form to help you fill out your other tax forms and should not attach it and send it to the IRS.
What is form 1095-C?
The third type of health insurance information form is the 1095-C form. This is generally sent to you by your employer if you work for a large company that has more than 50 employees. This form provides you with information about your employer-based coverage and your enrollment in this coverage.
This form can also determine your eligibility for a premium tax credit, similar to the 1095-A form. If you purchased a plan through the marketplace as opposed to choosing a plan through your employer, you should pay particular attention to part II of the 1095-C form.
What happens if I do not report my health insurance status or do not have health insurance?
If you do not have proof of health insurance or you do not have health insurance at all, you may be responsible for paying the individual mandate penalty fine.
The 2016 annual fee for not having health insurance coverage is either $695 per adult and $347.50 per child in the household with a maximum amount of $2,085 for a family or it is 2.5 percent of your household income with a maximum that is roughly equivalent to a bronze plan available for purchase on the Marketplace.
There are certain exemptions from this fee that you may qualify for such as the short coverage gap exemption. This applies if you went without health insurance for less than three months in a row. You will need to report this exemption when you file your tax returns.
Proof of health insurance
You will receive one of three health insurance information forms in the mail. You can use them to prove your health insurance status when you file your federal tax returns. You do not need to attach these forms when you file your tax returns. It is a good idea to have the necessary documentation on hand in case you do need to provide proof of insurance.
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