October 26, 2015

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When it comes to health care and tax season, there are three forms you should concern yourself with the: 1094-B, 1095-A and 8962. Why?

Well, filing them could save you money.

What is the 1094-B? It's a simple form that comes from your insurance carrier if you are insured through you employer. The 1094-B form proves you have minimum essential health care coverage. The Affordable Care Act requires most people to have a basic benefits health care package. Those who do not have this coverage have to pay a penalty when they file their tax returns, although there are some exceptions.

Usually insurance companies are responsible for filing this form, but sometimes it fall on the employer's shoulders. Regardless, people with minimum essential coverage should receive a 1094-B form confirming their coverage in the earlier part of 2016. If you have a subsidized plan through The Health Insurance Marketplace you will receive a 1095-A form to file.

On the other hand, Form 8962 is a Premium Tax Credit form that you file with your tax return. If you purchased through the Marketplace you may be eligible for a credit that helps you pay your health insurance premiums. The form helps you figure out if and how much you're eligible for.

When you enroll for health care coverage, you may be given a choice to send the credit directly to your health insurance company, reducing your monthly payment, or to get the money with your tax return. If you choose the former, this is an advance on the Premium Tax Credit, and you may have to pay some of it back if you estimated your income incorrectly for the year. If you choose the latter, you might get additional money when you file due to estimating your income incorrectly.

This upcoming tax season, be sure to take advantage of both forms to ensure accuracy when it comes to your money.

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