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How Will My Health Insurance Affect My Taxes?

Since the passing of the Affordable Care Act (ACA) a few years ago, it became required that all American citizens and legal residents have a health insurance plan for the entire year of 2014. If you were not covered by a health insurance plan at any time during 2014, you may owe the Internal Revenue Service (IRS) money due to a tax penalty. Filing your taxes this year is going to be somewhat different because of the ACA, and we at Elite Insurance Solutions are ready and prepared to assist you with reporting your health insurance. We would like to answer a few questions about how your health insurance is going to affect your taxes, according to the U.S. HealthCare homepage.

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HOW WILL I REPORT MY HEALTH CARE COVERAGE ON MY 2014 TAX RETURN?

There are a variety of different forms you will use to report your health insurance coverage. Depending on your situation, the following forms will be used when you file your federal income taxes:

FORM 1095-A HEALTH INSURANCE MARKETPLACE STATEMENT

If you purchased your health insurance through the Health Insurance Marketplace Exchange, you will receive this form in the mail. This form gives you all of the information you will need to complete Form 8962 for the Premium Tax Credit. You should receive a copy of this form for every member of your household who has a health care policy through the Marketplace Exchange.

FORM 1095-B HEALTH COVERAGE

Sent to you by your insurance provider, this form has the information you will need to report on your tax return to prove you, your spouse, and any dependents had health insurance during the past year.

FORM 1095-C EMPLOYER-PROVIDED HEALTH INSURANCE OFFER AND COVERAGE

Provided to you by your employer, this form contains information about the health care coverage offered to you by your employer.

FORM 8962 PREMIUM TAX CREDIT

If you purchased your health insurance through the Marketplace Exchange, you may be eligible for a tax credit. Your Form 1095-A will give you the details on the credit you will receive.

FORM 8965

You will need to fill out this form if you are exempt from health care coverage.

WHAT ARE THE TAX PAYMENT EXEMPTIONS?

If any of the following is true for you, you could be exempt from the tax payment:

  • you were the only uninsured for less than three months of the year
  • your lowest priced coverage would cost you more than 8% of your income
  • your income is too low to file a tax return
  • you belong to a recognized religious group with objections to health insurance
  • you are a member of a recognized health care sharing system
  • you are a Native American eligible for services through an Indian Health Services provider
  • you are incarcerated

WHAT IS THE TAX PENALTY FOR NOT HAVING HEALTH INSURANCE?

If you did not have health insurance during the past year, you will owe a tax payment. For the year 2014, the tax payment will be whichever of the following two methods (the Flat Fee and the Percentage of Household Income) is higher:

* a Flat Fee of $95 per adult and $47.50 per child, with a family maximum of $285
* the Percentage of Household Income is one percent of your taxable income over the maximum filing amount for your filing status, but not over the average cost for the bronze level health plan through the Marketplace Exchange ($2488 annually for an individual and $12,240 annually for a family of five or more members).

Have more questions or concerns about how your health insurance will affect your taxes this year? Contact Elite Insurance Solutions to speak to one of your agents about these important changes.

By Randy Hulett on February 6th, 2015 | Tagged with: Tags: , , , , , , | Leave a Comment

Health Insurance Options in Tennessee

Since the Patient Protection and Affordable Care Act (PPACA) was signed into law on March 23, 2010, health insurance in the United States has changed dramatically. Every individual is now required to be covered under a health insurance policy. For those who remain uninsured in 2014, they must pay a penalty on their federal tax returns. Not carrying health insurance costs $95 per adult and $47.50 per child, with a family limit of $285, or one percent of the family’s income. The higher of these two amounts will be the cost of the penalty. So that everyone has access to fairly-priced health insurance, each state was required by federal law to provide an online marketplace available on October 1, 2013 where residents could buy health insurance coverage. At Elite Insurance Solutions, our agents have simplified this process by working with customers to create a customized health care plan that fits their lifestyle, health, and budget. We are not locked into working with one carrier with set rates. Our agents can shop around for the lowest prices from the best health insurance companies to guarantee you the most affordable plan with the most trusted carriers in Tennessee. We would like to tell you more about your health insurance options in this state as we are most frequently asked by customers to answer questions about these options.

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If You Qualify for a Subsidy for Health Insurance

If your income falls into a certain range, you are eligible to receive a subsidy to help you pay for your monthly health insurance premium or use as an annual tax credit. However, to be able to use this subsidy, you have to choose a health insurance plan that has been approved by both the federal government and the government of Tennessee. Known as Exchange Plans, these health insurance plans must meet a set of standards of not using loopholes that can deny coverage to people with pre-existing conditions. Your health insurance company options in an Exchange Plan include BlueCross BlueShield of Tennessee, Cigna Health and Life Insurance Company, Community Health Alliance, and Humana Insurance Company.

If You Do Not Qualify for a Health Insurance Subsidy

If your income is too large to qualify you to receive a subsidy, you can still select one of the Exchange Plans from the online marketplace for Tennessee, or you can buy a private health insurance plan available in the private marketplace for the state. Private health insurance companies in Tennessee include Aetna, Assurant Health, BlueCross BlueShield of Tennessee, Cigna, Coventry Health and Life, and Humana Insurance Company. U.S. News & World Report rated 125 individual and family private health insurance plans offered to Tennessee residents on a one-star to five-star basis, with the five-star plans offering the most comprehensive coverage. The two companies with the best individual and family health insurance plans are Humana Insurance Company and BlueCross BlueShield of Tennessee.

What Are the Differences Between a Government-Approved and a Private Health Insurance Plan?

The main differences between the two include the cost and the amount of provided coverage. Private plans generally have less-extensive network coverage or fewer benefits, and this allows these plans to be less expensive.

Have more questions about your health insurance options in Tennessee? Contact Elite Insurance Solutions to ask an agent about the health insurance plans available to you.