January marks the beginning of tax season, but it’s also the last month to get health coverage through the Health Insurance Marketplace. Before you file for your return [we have free options for filing your return - see if you qualify], here are some things you should know about how health coverage affects your taxes:
1. You must file for a tax return if you are enrolled in a plan bought through the Health Insurance Marketplace and used premium tax credits.
2. If you bought health coverage through the Marketplace, you will need to turn in Form 1095-A: Health Insurance Marketplace Statement with your federal taxes. The Marketplace will send you this form in early February or it will be uploaded online into your Marketplace account.
3. If you did not have health coverage for 2 or more months in 2015, you may be subject to a penalty payable on your tax return due April 18, 2016. You’ll pay:
* 2% of your household income; or
* $325 per adult and $162.50 per child under 18
4. If you were incarcerated or experienced a hardship, you may be exempted from obtaining health coverage and paying the penalty fee. Learn more about exemptions.
For more information on health insurance and taxes, please visit https://www.healthcare.gov/taxes/ or unitedwaysela.org/vita.