With tax season upon us we wanted to put out some information that may assist you with your 2014 federal income tax return if you received subsidies with your NC Obamacare.
Just as a reminder as to how the subsidies work…the IRS will compare the income from your 2014 tax return to the income you estimated on your health insurance application. If the income on the application is lower than the amount you estimated you may be eligible for additional premium tax credit. It works the other way too…if your income is higher on the tax return than what you put on the application then you may owe additional premium tax. In other words they will “reconcile” the subsidy on your taxes, meaning “if you received too much subsidy, you have to pay some of it back. If you did not get all the subsidy you were supposed to, you would get it back in your tax return as additional tax credit.”
You will be receiving a Form 1095A from the Health Insurance Marketplace in early February. This form will show that you had coverage for the year (thus avoiding the tax penalty) and will also detail the gross monthly premium (column A) as well as the subsidy amount (column C) that you received. This information will now be required when you complete your 1040 tax return. When you receive the 1095A in the mail make sure that you keep this with your tax information so that you will have this when you prepare your 2014 tax return.
We have also put up a page on this site with some important links to help you with the process. You can find this page HERE.
If you or anyone you know still needs assistance with their 2015 NC Obamacare coverage please complete the form on the right of this page and we can assist you!