It’s everyone’s favorite time of the year, tax season!
Filing taxes can be a real pain. All of the paperwork, calculating, and research that has to be done in order to properly file can feel like a job in itself. That’s without mentioning some new things that you should be aware of when filing your taxes this year, and in years going forward.
Affordable Care Act Penalty
A couple years ago, the Affordable Care Act was passed and has gradually made an impact in the healthcare industry. However, one of the main aspects of the ACA was to charge a tax penalty to those who don’t enroll in a proper insurance plan that meets the minimum benefit requirement. Last year’s tax filing was the first that the tax penalty went into place, and the penalty will be higher this time. For more information on the breakdown of penalty amounts, read our previous blog, “New Open Enrollment Dates and Penalties!”
As you know, there are certain documents like your W-2 that you must receive in order to file your taxes. The document that may catch many by surprise is the 1095-B form (supplied by your insurer), 1095-C (supplied by your employer), or 1095-A (Supplied by the Marketplace). Going forward you will need one of these documents in order to properly file your taxes and avoid paying the penalty. However, this year things are different. At the end of 2015, the IRS made an announcement stating new due dates for certain tax forms. Read the announcement from the IRS below:
The due dates for the 2015 information reporting requirements under I.R.C. §§ 6055 and 6056, have been extended.
*The due date for furnishing the 2015 Form 1095-B, Health Coverage, was changed from January 31, 2016, to March 31, 2016; and
*The due date for filing with the Service the 2015 Form 1094-B, Transmittal of Health Coverage Information Returns, and the 2015 Form 1095-B, Health Coverage, was changed from February 29, 2016, to May 31, 2016. If filing electronically, the due date was changed from March 31, 2016, to June 30, 2016.
*The due date for furnishing the 2015 Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, was changed from January 31, 2016, to March 31, 2016; and
*The due date for filing with the Service the 2015 Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns, and the 2015 Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, was changed from February 29, 2016, to May 31, 2016. If filing electronically, the due date was changed from March 31, 2016, to June 30, 2016.
As a result of these extensions, individuals might not receive a Form 1095-B or Form 1095-C by the time they file their 2015 tax returns. For further guidance, please see Notice 2016-04.
What to Take Away From This?
Basically, what you should be taking away from this is that because these forms are being sent out later than expected, you do not need them when filing your taxes this year. Also, you are not required to amend your filing or file a correction later. However, it is imperative that you file these documents away some place safe in the event that you are audited and need to show proof of having the proper health insurance coverage in order to keep from paying the Affordable Care Act tax.
It is important to note that MHG Insurance Brokers does not provide tax advice. Speak with a tax advisor if you have any questions regarding your tax filings. For more information regarding what life insurance options are available to you, read our previous blog, “What Are My Life Insurance Options?” Whether you are purchasing life insurance for the first time, looking for better coverage or are interested in learning more about other types of insurance available to you, we can help! Visit our website at www.mhginsurance.com or speak with an insurance specialist at 954 828 1819. Don’t forget, the deadline for filing your taxes in Monday April 18th!