If you received subsidies in 2014 to reduce the cost of health care from the marketplace, you should receive Form 1095-A. Form 1095-A shows the tax credits the insurer received on your behalf.Â You should receive this form by January 31. This document must be received in order to complete your 2014 tax return.Â If you have not received it by the 31st, simply log on to your marketplace account and check for the electronic version.
The tax credit shown on Form 1095-A was based on your estimated 2014 household income and family size.Â You may need to recalculate this and determine the amount of tax credits that you were actually eligible for in 2014. Any unexpected changes in income, death, divorce or returning to the workforce, will all play a role in the adjusted gross income.
For taxpayers earning up to 400% of the federal poverty level-up to $46,680 for an individual- there are caps on the required repayment. If your income is above 400% of poverty level, you could possibly have to pay back the subsidies.Â It would be wise to get below the 400%…this can be done by making a traditional IRA contribution for 2014 by April 15.
For assistance, contact Person CPA Group at 504-780-8299 or visit our website www.personhuffcpa.com.