How does Health Insurance affect your taxes?
What is the Individual Mandate?
The government requires everyone to have health insurance coverage at least 9 months in a row (preferably year-round) or else pay the penalty in the form of taxes. You and your dependents are now required to do one of the following year-round:
- Minimum essential health insurance coverage (Medicaid, CHP+, employer coverage or Marketplace plan)
- Qualify for a Health Coverage Exemption
- Examples: People who are undocumented, unable to pay medical bills for the last 24 months or whose income is below tax-filing threshold
- Or pay the penalty when you file taxes
- For those who did not have qualifying health insurance during the year, a fine will be assessed to your taxes
Additional information from the IRS
What health insurance information do I need to file my taxes?
Did you have insurance in 2015? You may need to file a special tax form this year. You should have received a tax form in the mail verifying your insurance coverage throughout the year.
- If you were covered by an employer, the form is a 1095B or 1095C
- If you were covered by the Marketplace, the form is a 1095A
- If you were covered by Medicaid or CHP+, the form is a 1095 B
- Check your 1095 A, B, or C for accuracy before you file
- If there is a discrepancy between the income your tax credit is based on versus what you actually made, you will either owe or receive money from the IRS. The Form 8962 needs to be used to reconcile the difference.
IF YOU DID NOT RECEIVE A 1095 A,B, or C form, you can find them online or through your employer:
- 1095A: visit your Connect for Health Colorado online account and look under Documents
- 1095 B: visit your Peak online account and look under Communications
- 1095 C: Speak with your employer’s human resources department to get the form
- If you can’t find the documents on your online accounts, please contact FIRC 970-262-3888
If you have questions about where to find these forms or if the forms are incorrect, call FIRC for assistance.
Frequently Asked Questions – Taxes