January 26, 2015 12:57 am
When it comes to the health care law, almost everyone will need to do something new when filing a tax return this year. For each month in 2014, you and everyone on your return will need to do one of the following:
• Report healthcare coverageMost people will simply have to check a box to indicate they maintained health care coverage for the entire year.
If you and everyone on your tax return had health care coverage for all of 2014, simply check the "full year coverage" box when completing your return in the Free File software. For most people, that's it!
• Claim an exemption from coverage
If you did not have health care coverage for all or part of 2014, you may qualify for a coverage exemption. Free File will help you complete Form 8965 and file it with your tax return.
• Make a shared responsibility payment with your tax return
If you or your dependents had neither health care coverage nor an exemption, you may need to make a payment with your tax return. Free File will help you calculate your payment and report it on your tax return.
Before you begin filing your taxes, gather all related documents:
- A copy of last year’s return(Note: If you or anyone on your return purchased insurance coverage from the Marketplace, you may be eligible for the premium tax credit. If you chose to have advance payments of the premium tax credit sent to your insurer in 2014, you must reconcile or compare the advance credit payments with the actual premium tax credit you are allowed to claim on your return.)
- Valid Social Security numbers for yourself, spouse and children
- All income statements, i.e. W-2 forms, from all employers
- Interest and dividend statements, i.e. 1099 forms
- Form 1099-G showing any state refunds
- Unemployment compensation amount
- Form 1095-A, Health Insurance Marketplace Statement, if you purchased coverage from a Health Insurance Marketplace
- Records of your own and your family members' health care insurance coverage, including employer provided, government, Marketplace or private coverage
Once you’ve completed your return, you can also print a copy and e-file your federal taxes, absolutely free. With electronic filing, you will receive a confirmation within minutes that the IRS has accepted your return. Or, if it's not accepted, you can easily find out why. E-file helps make your tax return even more accurate, which means a quicker refund. To get your refund even faster, combine e-file with direct deposit.
The Free File software is available online 24/7.
Published with permission from RISMedia.