2016 marks the second year that Americans are required to report their health insurance status on their taxes under the Affordable Care Act (ACA). If your client had health insurance through their employer, Medicaid, Medicare, the VA or other qualifying coverage throughout the year, all you will need to do is just check a box on their tax returns indicating they had coverage all 12 months.
If your client purchased their plan on healthcare.gov or a state Marketplace, they will receive Form 1095-A, which confirms their coverage, premiums and any subsidies they might have received. New this year are Forms 1095-B or 1095-C — taxpayers who have non-Marketplace health insurance may receive these new forms, which are receipts from private insurers or employers, confirming the offer of affordable coverage. As a reminder, most taxpayers don’t need to wait to receive these forms to file their taxes, nor do they need to attach this information to their return.
If your client hasn’t received Form 1095 B or C, and they are unsure about the duration of their coverage, you can check their W-2, insurance card, explanation of benefits or statements from their coverage provider.