Tips For Handling ObamaCare Tax Forms

*Originally posted on investors.com. December 11.

By Paul Katzeff, Journalist, Investors Business Daily. 

On this year's tax returns, filers must deal with several tricky new rules and paperwork requirements stemming from ObamaCare.

You'll have to start dealing with the tax implications of the health insurance program as soon as new ObamaCare documents reach you, swirling in the blizzard of IRS forms that you receive, starting in January.

The key paperwork that you'll be looking for is a Form 1094-B from your insurer or a Form 1095-C from your employer.

Those verify that you had the health insurance required by ObamaCare, known formally as the Affordable Care Act.

If that or Medicare was the source of your coverage, you check the appropriate box on your Form 1040 tax return.

If you bought coverage through HealthCare.gov, the federal exchange that serves 37 states, or one of the independent state exchanges, you'll get a Form 1095-A.

You'll have to do the math to show that your payments were big enough, given any federal subsidies you received.

If it looks like you did not pay enough but you think you're entitled to at least one of the exemptions that are spelled out by the law, you have to file a Form 8965. If you think you're entitled to a tax credit, you must file Form 8962.

Tax credits go to taxpayers who receive coverage through an exchange and whose income is below specified levels.

Roughly, a family of four with household taxable income below $90,000 is likely to be liable for some credit, says Ernie Harris, executive vice president, corporate development, of Maestro Health.

What about penalties? ...

Read the full article HERE.