I have “Obamacare” health insurance. How does this affect my taxes?


When you purchased your health insurance through the marketplace, and your household income is between 100% and 400% of the federal poverty level, you receive a subsidy from the government to offset the cost of your monthly premium (it is based on where you fall within that range).  The company that provided you with the coverage is required to send you a form 1095-A.  This form lists your personal information, the individuals covered on the policy, and the term of the policy.  Additionally, it will list the following: the cost of your plan, the cost of the silver plan you qualify for, and the amount of the subsidy that was applied each month to your premium.  Once these numbers have been added to your tax return, the final calculation will generally show either a refundable credit (if you received less subsidy than you were owed) or a penalty (you received more subsidy than you were owed).  By not submitting your 1095-A information with your return, any potential refund will be delayed, and the IRS will contact you to obtain the form.  If you do not receive this form, you will need to contact the company that insured you for a copy; you will not contact the IRS for this form.  You may also be able to obtain this form online by visiting this link.

 

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