New IRS Publication Helps You Understand the Affordable Care Act

Your Guide to State, Local, Federal, Estate + International Taxation

There is a new publication that will help you learn about how the Affordable Care Act affects your taxes. This publication breaks down what’s new for the 2014 federal tax return you will be filing in 2015.

This new publication provides important information for taxpayers who:

  • Had health insurance coverage for the entire year
  • Did not have health coverage for each month of the year
  • Purchased health insurance from the Marketplace
  • Might be eligible for an exemption from the coverage requirement
  • Had advance payments of the premium tax credit sent to their insurance provider
  • Is claiming the premium tax credit on their tax return

The publication will help answers the following questions:

  • What new forms may be used to prepare the return?
  • What publications may be useful?
  • What is the individual shared responsibility provision?
  • Who must have healthcare coverage?
  • What is minimum essential coverage?
  • What are the health coverage exemptions?

Publication 5187 includes a glossary that will help you understand new terms related to ACA. It also addresses the new lines for reporting ACA information on Forms 1040, 1040-A and 1040-EZ. Most people have qualifying health coverage, and all they will need to do is simply check a box on their tax return. You can access Publication 5187 at IRS.gov/aca, along with other important information related to the health care law.

Contact us at Henry & Horne and we can help you with any questions you might have.

By Shant Andonian