Maryland Background for Covering 2015 Tax Season
By PRESS OFFICER
In preparation for the 2015 tax filing season, which
officially began in January, the U.S. Department of Health and Human Services
released today a fact sheet detailing information Maryland tax filers need to
know as they prepare to file their federal returns.
This tax season marks the first time individuals and
families in Maryland will be asked to provide basic information regarding their
health insurance on their tax returns. Consumers will have questions about this
new process and the Administration is committed to providing the information
and tools tax filers need to understand the new requirements.
In the coming weeks, the administration will continue to
provide additional resources to help consumers prepare for tax filing season,
including online tools to help individuals connect with local tax preparation
services and determine if they are eligible for an exemption.
For more information about this effort – or to request an
interview with an official from the Department of Health and Human Services,
contact firstname.lastname@example.org or call 202-690-6145.
FACT SHEET: Health Coverage and Federal Income Taxes
The 2015 tax season is the first time individuals and
families will be asked for some basic information regarding their health
insurance on their tax returns.
While the vast majority of tax filers – over three quarters
– will just need to check a box on their tax return indicating they had health
coverage for all of 2014, people who purchased coverage through the Health
Insurance Marketplaces, or decided not to enroll in coverage, should be aware
of the additional steps that will be a part of the tax filing process starting
Consumers will have questions about this new process and the
Administration is committed to providing the information and tools tax filers
need to understand the new requirements.
Individuals and families with non-marketplace coverage for
all of 2014.
Most tax filers – over three quarters – will just need to
check a box on their tax return to indicate that they had coverage all year.
These people met the Minimum Essential Coverage requirement, which means that
they had the basic health coverage necessary to meet the Affordable Care Act’s
standards. These individuals and families will not receive any new forms in the
mail and they will not be required to fill out new forms when they file their
2014 income tax returns.
What consumers need to know:
• When you file your tax return, you’ll need to check a box
to indicate that you and your family had health insurance for all of 2014.
Types of health coverage necessary to meet the Affordable Care Act’s standards
(Minimum Essential Coverage) include:
• Most job-based plans, including retiree plans and COBRA
• Medicare Part A or Part C
• The Children’s Health Insurance Program (CHIP)
• Most individual health plans you bought outside the
Marketplace, including “grandfathered” plans. (Not all plans sold outside the
Marketplace qualify as minimum essential coverage.)
• If you’re under 26, coverage under a parent’s plan
• It’s important to note that filing electronically is the
easiest way to file a complete and accurate tax return. Last year, approximately 85 percent of
taxpayers e-filed. Electronic Filing
options include free Volunteer Assistance, IRS Free File and professional
Resources available to help:
• Learn more about taxes if you had 2014 health coverage
from another source
• IRS Resource Guide:
Health Care Law: What’s New for Individuals & Families -
Individuals and families who had a health plan through the
Health Insurance Marketplace in 2014.
Last year millions of people purchased quality, affordable
coverage through the Health Insurance Marketplace, and most benefitted from a
tax credit to lower the cost of their monthly premium. Now that tax season is
here, individuals and families enrolled in a health plan through the
Marketplace will need to provide some basic information about their health
insurance when they file their taxes. All Marketplace consumers will receive a
new statement – called a Form 1095-A – that includes all the information they
need about their coverage to file their return.
What consumers need to know:
• You will receive Form 1095-A in the mail from the
Marketplace by early February. In most states, you can also download a copy of
your statement through your Marketplace account starting in late January or
• It’s very important to wait for your Form 1095-A to arrive
before you file your taxes. If you
haven’t received a Form 1095-A by early February, you should contact the
Marketplace Call Center at 1-800-318-2596. TTY users should call
• When you get your Form 1095-A, you should check the
information on your form - such as the number of people in your household – for
• If you find an error on your Form 1095-A, you should call
the Marketplace Call Center at 1-800-318-2596 to find out how to get a
• You should keep your Form 1095-A with your other important
tax information, like your W-2.
• If a tax credit lowered your monthly premiums for health
insurance in 2014, you will use your Form 1095-A to input some basic
information when you file your taxes.
• When you signed up for health insurance, you had to
estimate your income for 2014. Your estimated income determined the size of
your tax credit.
• Now that tax time is here, you need to compare your
estimated income with your actual income – and this could impact the final
amount of your tax credit.
• If your income or household size changed throughout the
year, it could impact the final amount of your tax credit.
• You may see a smaller refund or owe money back if you
underestimated your income.
• You may also get a bigger refund if you overestimated you
• If you owe money back, there are several repayment options
available. For example, if you are
unable to pay immediately, you may be eligible for a payment plan or an
• If you did not receive a tax credit to lower your monthly
premiums in the Marketplace, you can visit HealthCare.gov/taxes/tools/ to get
information you’ll need to enter into your tax forms to see if you might
• If your Marketplace coverage started partway through 2014
and you were uninsured earlier in the year, or if you were uninsured for only a
short period of time during the year, you may be eligible for an exemption from
the requirement to have health coverage.
• You can claim the exemption on your tax return when you
file. The process is fast and easy. You’ll simply select the exemption that
applies to you and enter the corresponding code.
Individuals who didn’t have health coverage in 2014.
While those who can afford health coverage but chose not to
buy it may have to pay a fee, individuals who could not afford coverage or met
other conditions can receive an exemption.
If you qualify, receiving an exemption is simple and easy, and means you
won’t have to pay a fee. It is important
for individuals to know that exemptions are available and to understand the
steps they need to take to request one.
What consumers need to know:
• You can claim most exemptions on your tax return, but some
exemptions are only available through the Marketplace.
• There are a variety of exemptions available, including if:
• The cost of coverage was too expensive. This applies to you if the lowest priced plan
available to you would have cost more than 8 percent of your income. Visit
HealthCare.gov/taxes/tools to get information you may need to claim the
exemption for coverage being unaffordable to you in 2014.
• You were uninsured for only a short period of time.
• You experienced a hardship, such as if you had medical
expenses that resulted in substantial debt, if a close family member passed
away, or if you experienced domestic violence, among other hardships. You will need to apply to the Health
Insurance Marketplace to qualify for this exemption.
• For a complete list of exemptions and more information,
read Information about Health Insurance Marketplace exemptions, or visit HealthCare.gov/taxes.
• When you file your taxes, you will enter information about
the months you had coverage and any exemptions you qualify for on your tax
• If you could have afforded coverage in 2014 but chose not
to buy it - and you don’t qualify for an exemption - you will have to pay a fee
with your federal tax return.
• The fee is based on your income, and how many months you
didn’t have coverage.
• If you didn’t have health coverage for all of 2014, you’ll
pay the higher of $95 per adult and $47.50 per child, who didn’t have coverage,
limited to a family maximum of $285, or 1% of your income, subject to certain
Additional help is available.
• If consumers have questions about their taxes, need to
download forms, or want to learn more about the fee for not having insurance,
they can find information and resources at www.IRS.gov or
www.healthcare.gov/taxes. They can also call the Marketplace Call Center at
• Some people who signed up for health insurance
through the Marketplace can get free tax assistance. For more information,
visit www.IRS.gov/freefile or www.IRS.gov/VITA
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