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Tax Day Is Coming! Here's What You Need

April 15th falls on a Sunday, and Washington DC celebrates Emancipation Day (the day Lincoln freed the slaves) on Monday, April 16th so Tax Day is Tuesday, April 17, 2018. 

April 15th falls on a Sunday, and Washington DC celebrates Emancipation Day (the day Lincoln freed the slaves) on Monday, April 16th so Tax Day is Tuesday, April 17, 2018. 

In 2017, you were required to have insurance all year unless you qualified for an exemption. You might have gotten your insurance from an employer, from public insurance (Medicaid, Medicare, VA coverage), or from private insurance (purchased separately or from the Marketplace). And now your 2017 taxes are due. Don't get confused, get organized!

 

Forms, Forms, Forms...

If you got insurance from an employer or public insurance, you should have gotten 1095-B or 1095-C forms from them. You can file your taxes without those forms, though, because they are also reporting to the IRS.

If you got insurance through the Marketplace, you need the 1095-A form. You can find that online in your healthcare.gov account. With the information you have on the 1095-A form, you can reconcile your tax credits, which you do using IRS Form 8962.

Find out more about how to reconcile tax credits with this handy explanation.

If you got private insurance without tax credits, your insurer should have your 1095-A, and you don't file for tax credits. You still have to submit the 1095-A as proof you had insurance.

 

I Didn't Have Insurance. Can I Get An Exemption?

If you didn't have insurance for the whole year, you might have qualified for an exemption. Common exemptions would be: 

  • you were uncovered for less than 3 months (perhaps you moved or switched jobs)
  • cost of insurance for the household was more than 8% of your income and was unaffordable
  • your income is below the tax-filing threshold 
  • you were living out of the country for all or part of the year.

There are other exemptions, too. You file for an exemption using IRS Form 8965. Find out more below. 

 

No Exemption?  No Insurance?  Pay a penalty.

If you don't qualify for an exemption, and you didn't have insurance, you might need to pay a penalty. For the 2017 plan year, the fee is calculated 2 different ways — as a percentage of your yearly household income, and per person. You’ll pay whichever is higher.

1. Percentage of income: 2.5% of yearly household income. The maximum is the total yearly premium for the national average price of a Bronze plan sold through the Marketplace.

or

2. Per person per year: $695 per adult or $347.50 per child under 18. The maximum is $2,085 per household. 

 

A Household Is Made Up Of Individuals

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NOTE: Think about each person in the household separately! In some cases, you may have one person on the Marketplace or with employer insurance, one person with an exemption based on affordability, and a child on Medicaid or MIChild.

If you finish your taxes, you realize you will owe some money, and you don't want that to happen again, come visit us at 555 Towner, Ypsilanti, MI M-F 9-4 p.m., or call us at 734-544-3030, for a free consultation.

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Three Steps Toward Qualifying for a Health Care Tax Exemption

In 2015, maybe you...thought you had health care, but you didn't

...you missed open enrollment on the Marketplace

...you lost your job and didn't realize you could apply for Medicaid or the Marketplace

...you thought health care would be too expensive. 

Now, you're doing your taxes, and you realize that you should have had health coverage, and since you didn't, you might need to pay a penalty! The penalty for 2015 could be as much as 2% of your income.

1. Before you panic, take a look at your whole family, and each person individually, to see if all or part of your family qualifies for a tax exemption. 

Look at each person in your family separately to figure out who might qualify for an exemption.

Look at each person in your family separately to figure out who might qualify for an exemption.

If anyone does qualify for an exemption, you will need to fill out IRS form 8965. 

2. The IRS has some excellent resources.

Don't forget--if you are low-income you can do your taxes with free software, free filing, and no messy handwriting!   

Don't forget--if you are low-income you can do your taxes with free software, free filing, and no messy handwriting!

 

If you got a Marketplace exemption, you will get a letter with an Exemption Certificate Number. [Can't find your letter? Log into your account on healthcare.gov and download it again.] If you have an IRS exemption, you just fill it in on Form 8965. 

Common reasons for exemptions:

  • The insurance you were offered was unaffordable
  • You only missed coverage for a couple of months
  • You are a member of a federally-recognized Indian tribe.

Less common reasons for exemptions:

  • Someone in your house was out of the country for several months
  • Someone in your household is not documented
  • You had a special hardship, such as an eviction.

3. File your taxes! You can get free help at these locations.

And while you are doing your taxes, think about the implications for next year. If during the next year, you get married...divorced...get a new job...lose a job...have a baby...move...graduate from college...it would be prudent to get a health care check-up! That would be a good time to visit the Washtenaw Health Plan or get some other health insurance help!

 

 

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Special Enrollment Period March 15 - April 30, 2015

Special Enrollment Period (SEP) for healthcare.gov March 15 to April 30. Find out if you qualify.

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