Health Insurance and Your 2014 Taxes: 5 Things You Need to Know

We have a lot more information here on how health insurance affects your federal income tax return for 2014:

But these are the basics:

  1. Health coverage and your taxesIf you bought a plan through Maryland Health Connection for 2014 at any time, we’ll mail you a form by Jan. 31 that you should use to complete your federal tax return this spring.

    You’ll use the information on this form (called Form 1095-A) to report on your federal tax return whether you received any advanced tax credits that lowered your monthly insurance bills. You’ll fill out another form, Form 8962, and submit it with your taxes.

  2. If you were enrolled in Medicaid or Medicare, or had other coverage like a plan through your job or health insurance you bought on your own, you won’t get a Form 1095.

    You’ll just indicate on your taxes that you did have health insurance in 2014. Good for you!

  3. If you didn’t have health insurance for all of 2014, you probably have to pay a fine to the federal government because having health insurance is now required for most Americans.

    Generally you’ll pay $95 per person or 1% of your yearly gross household income above a certain amount, whichever is higher.

  4. You can claim an exemption from having to pay the fine, if you’re eligible.
    To claim an exemption with your tax return, you’ll fill out a new form, Form 8965, Health Coverage Exemptions.

    One exemption is having a gap in coverage of less than three months during the plan year. So if you bought your plan in March 2014 and had health insurance for the rest of the year, you wouldn’t have to pay the fine.

    There are other exemption types you may be eligible to apply for. To find out more check out our Exemptions page.

  5. If you didn’t have health insurance in 2014, it’s not too late for 2015 — you can still enroll now, before Feb. 15.

    The penalty is higher for not having insurance in 2015, so protect yourself with health coverage for peace of mind — and don’t get fined!