Our new Tax Preparer’s Guide to the Affordable Care Act explains the ACA’s coverage requirements, how they affect tax returns, and the new forms that taxpayers will need to complete. It includes examples and practical tips on how to approach the ACA-related sections of the tax return.
Beginning this tax season, all taxpayers need to report on their health insurance coverage to the IRS. Some will have to complete additional tax forms or worksheets to claim an exemption from the requirement that they have coverage (or to calculate the penalty for not having coverage).
Also, recipients of advance payments of the premium tax credit to purchase marketplace coverage will need to reconcile the payments they received with their final premium tax credit, which is calculated on the tax return.
Knowing more about the ACA requirements will help tax preparers better serve their clients, especially those who are unfamiliar with filing taxes, experienced periods without coverage in 2014, or have complicated coverage situations.