PROVIDENCE, R.I. (WPRI) — The Affordable Care Act may change the way you file your federal income tax return this year.
There are new information forms that can help you complete your tax return, which you should’ve received last month if you purchased your health insurance through HealthSource RI.
“This year, everybody is getting a tax document called a 1095,” said Linda Katz of the Economic Progress Institute.
The 1095 is basically a proof of health insurance, and there are three versions of the form: A, B, and C.
The A form is for people who have purchased health insurance through a marketplace such as HealthSource RI. The B form is for people who have insurance through a small business or public insurance such as Medicare or Medicaid, while the C form is for employer-provided health insurance.
According to Katz, people who received the 1095 B or C “just need to read it, see if it’s accurate, and file it with their records. They don’t have to bring it when they file their taxes.”
You’ll use the information on that form to complete another form, and you may get money back or owe money. It’s all based on the advance tax credit payments that were estimated for 2015.
“If your income turned out to be higher than you anticipated, then you got too much credit and you have to pay back a little bit,” added Katz. “If your income turned out to be lower, you got too little in the tax credit and you can wind up getting more money back from the government to help pay for health insurance.”
If you didn’t have health insurance and you weren’t exempt from coverage, you’ll be facing a tax penalty. If you still don’t have coverage this year, you could be facing a more expensive tax penalty next season.
“The important takeaway is if you’re uninsured this year in 2016, check through HealthSource RI, apply to see if you’re eligible, either through Medicaid or a special enrollment period,” said Katz.
If you’re expecting a 1095 B or C form, you may not have received it yet, but you can still file your taxes.
For more information about the 1095 A form, contact HealthSource RI or RIReach, Rhode Island’s health insurance consumer support line.
- By phone: 1-855-840-4774
- Visit the HealthSource RI website
- By phone: 1-855-747-3224
- Visit the RIReach website