Health Insurance and Premium Tax Credits
Health Insurance in 2014
As you know, health insurance is now mandatory. If you have not applied for coverage, you should in order to avoid penalties. You can do this by visiting “The Health Insurance Marketplace” at healthcare.gov. Open enrollment began November 15, 2014 and will remain open through February 15, 2015.
The Premium Tax Credit
The premium tax credit will be new for 2014 and is a refundable credit. It was designed to help both individuals and families with low or moderate income to be able to afford the newly government mandated health insurance if you purchased it through the “Health Insurance Marketplace”. You could either have the credit paid in advance to your health insurance company to lower your monthly out of pocket payments or you can claim the credit when you file your 2014 tax return. For those of you who may not have previously been required to file a tax return, if you are claiming this credit, you must file your tax return this year.
If you have enrolled in health insurance coverage through the Health Insurance Marketplace, you must report any changes that would impact your eligibility for the advance payments or premium tax credits as they happen. Circumstances would include events such as increase/decrease in income, marriage or divorce, birth of child, starting a new job that has health coverage, etc.
If you have questions, www.healthcare.gov is a great resource to get help.