By Pamela Yip, February 22, 2015
Taxpayers are just starting to learn the complex connection between the Affordable Care Act and taxes.
For the first time, taxpayers will have to state whether they had health insurance through an employer, a health insurance exchange or a private insurance policy.
If they didn’t, they could face a tax penalty.
“I don’t think they realize how big a deal it is,” said Carla Medrano, certified public accountant at Beaird Harris & Co. in Dallas. “I don’t think it will hit them until they do their return.”
Medrano was among several members of the Dallas CPA Society who staffed The Dallas Morning News’ annual Tax Hotline on Sunday. The hotline drew 166 calls.
For most Americans, filing under the ACA will simply mean checking a box on their tax returns to show they had health coverage all year.
On Line 61 of the 1040 tax form, you must indicate that you, your spouse (if you’re filing a joint return) and your dependents had health insurance last year.
If you bought coverage through the health insurance marketplace, you will receive IRS Form 1095-A, Health Insurance Marketplace Statement, from the exchange. It will list who was covered and for how long, as well as premium costs and any advance payment received for premium tax credits.