Whether you are preparing your taxes yourself or using a tax preparer, this year’s taxes will be a little more complicated. Since the provisions of the Affordable Care Act (ACA) became effective in 2014, tax preparers need even more information from clients in order to accurately prepare the tax return.
Tax preparers must obtain documentation in order to verify whether taxpayers have health insurance and whether they are entitled to a credit.
What health insurance information is needed to prepare your taxes?
- If you received health insurance from the Marketplace (Health exchange; healthcare.gov), then they should send form 1095-A, Health Insurance Marketplace Statement for 2014 by the end of January.
- If you have insurance from your employer, you may received form 1095-B, Health Coverage and/or 1095-C, Employer-Provided Health Insurance Offer and Coverage. These forms are not required for 2014, so they may not be sent out. If you don’t receive one of these forms, read below what documentation you could use to verify your health insurance information.
I didn’t receive from 1095-B or 1095-C
If you didn’t receive either of these forms, you could use the documents below to verify your health insurance instead.
- Provide your health insurance card or a copy of your health insurance card to your tax preparer. It usually states the beginning and ending coverage dates.
- See if you’re W2 has the code DD in box 12. Keep in mind even though this proves you had insurance, it doesn’t verify if you had it all year.
- Insurance contract paperwork or printed copy of insurance information from health insurance provider showing dates of coverage.
Health Insurance information for your tax preparer
The questions below may be asked by your tax preparer. Have the answers ready before your tax appointment. Your preparer will love you for it!
- What kind of insurance do you have?
- Did you receive Form 1095-A, 1095-B, or 1095-C?
- Where did you obtain health insurance?
- Does your employer offer health insurance?
- Do you have a health insurance card? If not, do you have evidence of coverage?
- Are your children (dependents), if any, covered?
- Did you apply on healthcare.gov for an exemption?
- If you applied for an exemption, do you have the exemption certificate number (ECN)? (tax return will be rejected without ECN)
- Did you have a gap in insurance coverage for less than 3 months? (may be eligible for short coverage exception on your tax return)
