The deadline to file your federal income taxes for 2014 is right around the corner. Here’s what you need to know about how your health coverage affects your tax return, and a special chance to still get covered for this year if you owe the penalty for being uninsured:
If you bought a plan through Maryland Health Connection in 2014
You should have already received a Form 1095-A to use when you file your federal income taxes. Similar to a W-2, a 1095-A is one of the things that will determine the amount of taxes you will pay or the refund you receive. You’ll use it to fill out IRS Form 8962.
You must file a federal income tax return if you received tax credits in 2014 through Maryland Health Connection, even if you are not otherwise required to file.
If you were enrolled in Medicaid or Medicare, or had other coverage
If you had health coverage from another source, like a job, Medicare, Medicaid or a plan you bought outside Maryland Health Connection, you’ll indicate on your taxes that you did have health insurance in 2014 (you won’t get a Form 1095-A from us).
Not insured in 2014? You probably owe a penalty
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.
You can claim an exemption from having to pay the fine, if you’re eligible. There are some limits on the amount you would owe, depending on your household income.
But there is some good news…
Special chance to enroll NOW if you owe the penalty
If you get covered for the rest of 2015, you’ll owe less next year, when the penalty increases! Use this calculator from the Tax Policy Center to see how much you could owe if you still don’t get covered.
We have a lot more information on how health insurance affects your federal income tax return for 2014. See FAQs and get helpful tools and resources at MarylandHealthConnection.gov/2014taxes/