“Are the tax credit and related health coverage filing details required for individual 1040s really that complex, and do you feel there is adequate IRS guidance?”

Yes, most consumers will find it very confusing and yes there is sufficient IRS guidance.

 

Consumers will fall into two broad categories, either they received tax credit for 2014 tax year or did not.

 

Did Not Receive Tax Credit

  • Form 1040EZ – Easiest to file with some restrictions (e.g. claim no dependents and do not want to claim any advance payments of the premium tax credit)

 

Received and Will Claim Advance Payments of the Premium Tax Credit

  • Form 1040A – Has some restrictions (e.g. do not itemize deductions, claim standard deductions and taxable income or 100k or less) or
  • Form 1040 – Filed for taxable income of greater than 100k (e.g. can itemize deductions and
  • Form 8962 for Premium Tax Credit http://www.irs.gov/pub/irs-pdf/f8962.pdf, the 1095-A is required when filling out Form 8962 to claim premium tax credits.

 

If consumers had private health insurance or had self-insured employer coverage or coverage through a government program (e.g. Medicaid or Medicare) they may receive a 1095-B. If consumers had health insurance through a large employer that had an employer-sponsored plan they may receive a 1095-C. However, 1095-B and 1095-C are optional for 2014 tax year, which means its unlikely most folks will receive one.

 

Unfortunately, if consumers didn’t have or maintain coverage, they will have to get an exemption or make a payment with their federal income tax return.

 

References:

Riddle, C. (2015). Mcol Blog – The MCOL Blog – Are the Health Coverage and Tax Credit Details for Filing 1040s Really That Complex? Retrieved from http://www.mcolblog.com/kcblog/2015/2/12/are-the-health-coverage-and-tax-credit-details-for-filing-10.html

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Peter is a technology executive with over 20 years of experience, dedicated to driving innovation, digital transformation, leadership, and data in business. He helps organizations connect strategy to execution to maximize company performance. He has been recognized for Digital Innovation by CIO 100, MIT Sloan, Computerworld, and the Project Management Institute. As Managing Director at OROCA Innovations, Peter leads the CXO advisory services practice, driving digital strategies. Peter was honored as an MIT Sloan CIO Leadership Award Finalist in 2015 and is a regular contributor to CIO.com on innovation. Peter has led businesses through complex changes, including the adoption of data-first approaches for portfolio management, lean six sigma for operational excellence, departmental transformations, process improvements, maximizing team performance, designing new IT operating models, digitizing platforms, leading large-scale mission-critical technology deployments, product management, agile methodologies, and building high-performance teams. As Chief Information Officer, Peter was responsible for Connecticut’s Health Insurance Exchange’s (HIX) industry-leading digital platform transforming consumerism and retail-oriented services for the health insurance industry. Peter championed the Connecticut marketplace digital implementation with a transformational cloud-based SaaS platform and mobile application recognized as a 2014 PMI Project of the Year Award finalist, CIO 100, and awards for best digital services, API, and platform. He also received a lifetime achievement award for leadership and digital transformation, honored as a 2016 Computerworld Premier 100 IT Leader. Peter is the author of Learning Intelligence: Expand Thinking. Absorb Alternative. Unlock Possibilities (2017), which Marshall Goldsmith, author of the New York Times No. 1 bestseller Triggers, calls "a must-read for any leader wanting to compete in the innovation-powered landscape of today." Peter also authored The Power of Blockchain for Healthcare: How Blockchain Will Ignite The Future of Healthcare (2017), the first book to explore the vast opportunities for blockchain to transform the patient experience. Peter has a B.S. in C.I.S from Bentley University and an MBA from Quinnipiac University, where he graduated Summa Cum Laude. He earned his PMP® in 2001 and is a certified Six Sigma Master Black Belt, Masters in Business Relationship Management (MBRM) and Certified Scrum Master. As a Commercial Rated Aviation Pilot and Master Scuba Diver, Peter understands first hand, how to anticipate change and lead boldly.