The Individual Shared Responsibility Provision brings changes to 2014 Income Tax Returns

The Affordable Care Act brought some changes with it in 2014 relating to the individual shared responsibility provision.

The individual shared responsibility provision in the Affordable Care Act calls for you to have qualifying health care coverage for each month of the year, qualify for a health coverage exemption, or make an Individual Shared Responsibility Payment when filing your federal income tax return. You are responsible for yourself and any dependent. All you need to do is check the box on your tax return when you file.

However, if you don’t have qualifying health care coverage and you meet certain criteria, you might be eligible for an exemption from coverage. Most exemptions are available on your tax return, but some must be claimed through the Marketplace. If you or any of your dependents are exempt from the requirement to have health coverage, you will complete the new IRS Form 8965, Health Coverage Exemptions and submit it with your tax return.

If you or any dependents can afford insurance, but chose not do use it and you do not qualify for an exemption, you must pay the individual responsibility payment. Tax Form 8965 includes a worksheet that will calculate your shared responsibility payment on your tax return.

Whether or not you need to check the box on your tax return, make a payment, claim health coverage exemptions or file electronically, we can help with all the tax preparation and filing. Our software is accurate and up-to-date, plus our experts know exactly what questions to ask in order for you to qualify for every deduction.

Beaton Accounting

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