What the Affordable Care Act Means for Taxpayers in 2015

 

This year's heavily anticipated tax season marks the first time U.S. residents will have to report their health insurance status and face a penalty for failing to obtain coverage. Those who qualify for one of the ACA's numerous coverage exemptions will have to navigate a complex application process, while others who purchased coverage through a state or the federal health insurance exchange will have to complete a new tax form.

The majority of taxpayers -- about 75% -- are expected to be able to simply check a box on their tax return stating that they had minimum essential coverage under the ACA for all of 2014. Such coverage includes most employer-sponsored coverage and retiree plans, Medicare, Medicaid and the Children's Health Insurance Program.

The other 25% of taxpayers -- those who purchased coverage through the exchanges and those who remained uninsured -- will have some additional paperwork to complete. MORE

(CaliforniaHealthline 1/28/2015)