Proof of health insurance

[gregintenn]

I'm quite certain I read somewhere that you need to send proof of health insurance for 2015 with your tax return to avoid a fine.

I understand this should be in the form of a letter from one's insurance provider. I haven't received this yet. Have you? Am I wrong about this?

[wvugurl26]

I can print mine out. My dad was told his wouldn't be coming until mid February. I'm guessing it has a different deadline than the 1099s.

[ken a.k.a OMK]

From the IRS website:

The health care law will bring some changes to the 2015 federal income tax return that individuals file in 2016. This year marks the first time that taxpayers may receive multiple information forms that they can use to complete their tax return and will keep with their tax records.

The information forms are:

Form 1095-A, Health Insurance Marketplace Statement
Form 1095-B, Health Coverage
Form 1095-C, Employer-Provided Health Insurance Offer and Coverage.

[gregintenn]

A coworker had his taxes filled out last week by a commercial preparer, and was told he didn't need this.

There is evidently some confusion regarding it.

[ken a.k.a OMK]

There is a lot of info on the IRS site. Here is more of an answer to your question about sending anything in (you don't):

Proof of Insurance

Taxpayers are not required to send the IRS information forms or other proof of health care coverage when filing their tax return. However, it’s a good idea to keep these records on hand to verify coverage. This documentation includes

Form 1095 information forms,
insurance cards,
explanation of benefits,
statements from your insurer,
W-2 or payroll statements reflecting health insurance deductions,
records of advance payments of the premium tax credit and
other statements indicating that you, or a member of your family, had health care coverage.

If you are expecting to receive a Form 1095-A, Health Insurance Marketplace Statement, you should wait to file your 2015 income tax return until you receive that form.

Some taxpayers may not receive a Form 1095-B or Form 1095-C from their coverage providers or employer by the time they are ready to file their 2015 tax return. Like last year, taxpayers can prepare and file their returns using other information about their health insurance. You should not attach any of these forms to your tax return.

While your employer may be able to assist you in verifying your coverage, most employers are not required to provide documentation specific to your health care coverage.

[gregintenn]

Thanks. That's what I was looking for, but unable to locate.

[ken a.k.a OMK]

I googled "proof of health insurance" and got the link to the IRS page. My 1095B is available electronically at the Defense Finance Accounting Service. I have Tricare for military retires.

[ken a.k.a OMK]

I guess we are on the honor system unless we get audited.

[andi9899]

I got one from my employer stating how many months out of the year I had health insurance.

[taxref]

As noted in a response above, a 1095 series form does not have to be included with ones return.  Rather, one uses the information on the 1095 to complete the tax return.  

If a person had qualifying health insurance for the entire year, simply checking the yes box on the tax return is sufficient.  Those who weren't covered for the full 12 months will need the information on the 1095 to compute any penalty which may be owed.

[gregintenn]

Thank you all!

[TheOtherMe]

Feb 7, 2016 13:31:35 GMT -5 andi9899 said:

I got one from my employer stating how many months out of the year I had health insurance.

As did I and I checked the box.

As for being on the "honor" system, you are always on the honor system with your tax return unless audited.  Of course, certain forms get matched to your tax return and if they don't match, you will receive correspondence from the IRS.

[wvugurl26]

Guess if I opened mine I would have figured out it didn't need to be sent in!!

[resolution]

I haven't received mine yet, although my employer says it's in the mail. Hopefully I should be ok since my W2 shows the employer portion of the premium.

[rangerj]

NOTE: If one is not covered for 12 months of the year there is the possibility of a penalty for the months not covered. That being said, there is also a possibility for an exception to the penalty if one meets the qualifications for the exception (to the penalty). In over 45 years of tax practice the ACA is by far the worst bit of tax law I have ever seen. As stated above you do not have to send in the notification form (one of three forms listed above) with your tax return. You could possibly be asked to submit proof of coverage at sometime in the future so maintain the records. BE SURE TO CHECK THE BOX indicating that you, or the client, has health insurance coverage.