Affordable Care Act Form 1095 Delayed
Posted on February 1st, 2016 in Uncategorized
As part of the Affordable Care Act, (the “ACA”) people are now required to report their health care coverage on their personal tax return. As we all painfully learned last year, if you did not have insurance, you may see “shared responsibility payment” penalty on your return.
Along with the new regulation comes the form called “1095” and how the form plays a crucial role in calculating your subsidy and tax liability.
So we went and dealt with it last year and now it should get easier right? I’m afraid there are some obstacles ahead.
Originally the form 1095 were scheduled to be mailed by February 1st but the IRS has delayed the due date to March 31st, which means if your insurance provider or healthcare exchange decide to wait, we all have to wait until we get that one piece of paper.
If you had health coverage for entire 2015, you will simply check the box saying so and not have any issues. However, if you have received subsidy to purchase your insurance via governmental healthcare exchange, if you have had a partial year coverage, or if you are just not sure, you may have to wait for the Form 1095 to arrive. The Form 1095 will breakdown your healthcare coverage and it is generally a good idea to have that paperwork in your hand before you see your tax advisor.
If you already filed the return and realizing that you did not report healthcare accurately, there is no reason to panic. You are not alone. Many taxpayers will be in your shoes too. As the 1099s, W-2s, and many other important tax mail out due date is today, let’s make that phone call to your tax advisor to discuss. If you are not sure who to call or talk about this, please let us know.
About the Author – Ashley Burdette, CPA is the Managing Director of Zagotti and Burdette CPA, LLC. She can be reached at ABurdette@znbcpa.com or (832) 800-3347.