The ACA included several tax laws that went into effect in 2013. Some of the tax laws of which you should be aware include:

  • Reporting of employer-sponsored healthcare costs on your federal tax return from your Form W-2
  • Increased threshold for claiming unreimbursed medical expenses as an itemized deduction
  • Additional tax on net investment income from interest, dividends, capital gains, rental and royalty income, and other investment income for high-income taxpayers
  • Additional Medicare tax on wages and compensation for high-income taxpayers

2015 Tax Returns (due April 18, 2016)

Tax time will still be simple and straightforward for the vast majority of Americans. You'll just report whether you had health care insurance for 2015 on your return.

If you purchased 2015 health insurance through a government-sponsored marketplace (federal, state or both) or received the advanced premium tax credit, you'll receive Form 1095-A from your marketplace in January 2016. You'll report this information on your return.

TaxAct makes this easy and fast. Just enter Form 1095-A information when prompted and TaxAct will do the rest. If you received the advanced premium tax credit, TaxAct will calculate whether you'll receive a larger tax credit as a refund or need to pay back any of the credit based on your income.

If you were uninsured for more than two months in 2015, find out if you qualify for an exemption. Some exemptions require you to apply for an exemption certificate number (ECN) that you'll report on your tax return. Exemption applications may take several weeks – even months – to process, so don't wait to apply - doing so could delay processing of your tax return and your tax refund!

If you don't qualify for an exemption, you may have to pay an individual shared responsibility payment on your tax return. For 2015, the penalty is whichever amount is greater – 2 percent of your yearly household income or $325 per adult and $162.50 per child under 18, up to a maximum of $975.

The fee for not having adequate health insurance for future years is even greater. For 2016, if you don’t have health coverage you’ll pay the higher of the following two amounts: 2.5 percent of your yearly household income or $695 per adult and $347.50 per child under 18, up to a maximum of $2,085.

After 2016, the amount will increase annually by the federal cost-of-living adjustment.

Learn more about the penalty and estimate your amount.

Are you a small business owner?

Find out how the ACA impacts small businesses.

Additional Resources:

TaxAct resources

IRS resources

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Free Guide: Year-by-Year Impact of ACA Changes

Did you know the Affordable Care Act includes tax law changes? Find out if they'll impact your taxes with TaxAct's free guide.

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