ObamaCare and 2014 Taxes

If you purchased your health insurance coverage via one of the now famous “exchanges” in 2014, get ready for a new, related tax filing obligation with which you may be burdened.

You should soon receive from your exchange IRS Form 1095-A (“Health Insurance Marketplace Statement”).  And particularly if you expected at the outset to be entitled to a subsidy to help pay for your coverage, you will need Form 1095-A to allow you to compute and properly claim the premium tax credit, and to reconcile the actual credit amount with your original estimate, as you complete your 2014 individual income tax return.

Be aware that if your premium tax credit was originally estimated before you knew exactly how much income you would have in 2014, the credit may not be as much as you expected.  It gets complicated; check out the instructions to Form 1095-A and the related Form 8962.