The Financially Healthy Man – A Health Insurance Tax Guide.

The 2015 tax season is here! Exciting right? Well maybe it isn’t as exciting as signing up for a CrossFit class or starting a mindful eating program but it is close to as important to be financially savvy as it is to be physically healthy. The two are actually more connected than you might think, specifically when it comes to filing taxes.

So now that you have signed up for 2015 health insurance, what is next? Well the answer that is coming to most people’s mind this time of the year is taxes. With April 15th (Tax Day) right around the corner it is important to have everything necessary to file your income taxes for the year. But don’t completely forget about that shiny new health plan you signed up for because it will affect how you fill out your tax returns.

Here is a breakdown of what you need to know by tax forms if you signed up for coverage through the Marketpace.

Form 1095-A

If you enrolled in marketplace coverage in 2014 you should be receiving this form by early February 2015. The 1095-A form is used to determine how much tax credit you are eligible for. Because you will have already filled this out when applying for coverage all you need to do when you get this form in the mail is make sure the information is up-to-date. If something is incorrect you can go here to get a corrected 1095-A form. You might also receive more than one 1095-A form if anyone in your household switched plans or had a life change (getting married, having a baby, etc.). So don’t be alarmed if you get more than one.

Form 8962 or Premium Tax Credit Form

Those advanced payments you have been getting towards your insurance premium are awesome huh? During the process of signing up for coverage you had the option to get advance tax credit payments that went towards your insurance premiums. The Marketplace calculated these tax credit payments based on income and family situation. When you fill out the 8962 form the actual amount of credit you should be getting will be calculated. If the amount you used for your advanced payments was less than the total amount you qualified for, you will get the difference after you file. But, that means that if your payments were more than the amount you qualify more you will be accountable for that difference also when you file. More information on this form can be found here.

Form 8965

This form is for anyone whose coverage started partway through 2014. The great part about this is it will show that you qualify for an exemption from paying a fee for the months you weren’t covered.

Final Points

With Open Enrollment and Tax season overlapping there is a lot to think about. Make sure you understand that there is a penalty for missing the tax filing deadline (April 15, 2015) and if you don’t have health insurance (Marketplace, Medicare, Employment based, etc.)  by February 15, 2015. Part of being healthy is taking responsibility. Getting your taxes in on time and signing up for health insurance are two major steps in the right direction.

Some more tips about Marketplace coverage and filing for taxes can be found here

If you haven’t already enrolled in health coverage you can start by visiting www.healthcare.gov

What you need to know about taxes

How taxes and insurance relate