The Affordable Care Act requires most people to have health insurance coverage or pay a penalty when they file their taxes. This flow chart shows how people are affected by this requirement. This fact sheet provides an overview of taxes and health insurance.
Tax Form 1095 shows months of health insurance coverage. Last year only people who purchased coverage through HSRI received a tax form 1095-A showing the months they had health insurance coverage. This year people who had coverage from Medicaid, Medicare or other public coverage received a 1095-B and people who had coverage from work received a 1095 B or C. People who had coverage from work may not receive the 1095 B/C until the end of March, but they file their taxes before receiving the document.
People who purchased coverage through HSRI use the information on the 1095-A to complete the Premium Tax Credit Form 8962 to calculate the actual amount of health insurance premium tax credit they were due for 2015. The actual amount of the credit may be higher or lower than the amount of the credit the person took each month because the original credit was based on estimated income.
People who didn’t have coverage may need to pay a penalty unless they are exempt. Exemptions include a short coverage gap (no more than 2 consecutive months), insurance was unaffordable, immigration status or major life event that made it hard to get insurance.
People who did not receive a 1095-A from HSRI or need to make corrections to the information contained in the document should call: 1-855-408-1344 (HSRI special tax number).
RIREACH can provide general information to consumers, help with correcting information on the 1095-A and help establish an exemption from the penalty. Call: 1-855-747-3244
For more information about taxes and health insurance:
- Overview of taxes and health insurance: Healthcarerightsri.org/resource-hub/2015-taxes-and-healthcare
- Rhode Island Information about exemption based on unaffordable insurance and FAQs: http://healthsourceri.com/get-help-tax-season/
- Detailed information about taxes and health insurance: http://www.healthreformbeyondthebasics.org/home/for-tax-preparers/
- Information from the IRS: https://www.irs.gov/Affordable-Care-Act