Since 2010, The Health Insurance Marketplace (or Exchange) has been giving private insurance companies a run for their money with their affordable healthcare plans. It was introduced to help low-income families have affordable access to healthcare, as a part of the Affordable Care Act, more commonly known as ‘Obamacare.’ Admirable as it may be, there are some things you may not know about the Marketplace as it relates to your income taxes. Don’t worry, that’s what we are here for! Keep reading for all of Ned’s need-to-knows as they relate to the Marketplace.
First, if you’re not enrolled in Marketplace but need to, you’ll want to visit www.healthcare.gov. On the site, you’ll be able to check when open enrollment is, enroll for coverage, and create an account so you can check the status of your enrollment and make premium payments. Additionally, you will be able to check if your life event qualifies you and your family for a plan change, or a special enrollment period. If you’re not sure if you have marketplace insurance or not, you can access your states marketplace number via google.
Next, you’ll want to be careful when you enroll for Marketplace that you’re reporting an accurate estimate of your income for the year as well as any projected changes to your family size. If this information is reported incorrectly, when filing your taxes, you will be required to pay back some or all the premiums that were subsidized over the period of the year, having the potential to drastically change your amount owed or refund amount. You can avoid this, by keeping up with income projections throughout the year, and reporting expected increases in income and household size to the marketplace, if applicable, as soon and as often as the information is made available to you.
Lastly, if you have purchased health care insurance through the Marketplace, you should receive a Form 1095-A Health Insurance Marketplace Statement at the beginning of the tax filing season. If for some reason you do not receive this form by mail, you will be able to access it through your account at www.healthcare.gov. This form reports the total monthly health insurance premiums paid to the insurance company you selected through the Marketplace for you and your family. In turn, this helps your tax firm correctly report the subsidy for you and your family members.
We hope you find this information helpful as you begin to prepare for the upcoming tax season. Listed below, you will find some links with commonly asked questions about the marketplace. And as always, the information for our main office downtown will be listed as well. Don’t forget to check back for more!
Ned Jackson Downtown Office
255 N Liberty Street
Jacksonville, FL 32202