If you received insurance coverage through your employer in 2014, it will be reported in Box 12 of your W-2 Form.
Obamacare – also known as the Affordable Care Act, or the ACA – is a law enacted to ensure that all Americans can afford health insurance. It also requires Americans to have qualified health insurance as of January 1, 2014 through one of the following forms of coverage;
- employer-sponsored plan
- private health insurance company
- government program (ie. Medicare or Medicaid)
- federal or state marketplace (health insurance exchange)
If you received health coverage through your employer, the insurance information that you’ll need to report on your 2014 taxes will be found on your W-2 Form.
If you didn’t receive insurance through your employer and instead were enrolled in the Marketplace during 2014, visit the RapidTax Blog post “ I’m Enrolled in Obamacare Marketplace- How Do I Report it On My Taxes?”.
Reporting Employer-Sponsored Health Coverage on 2014 Taxes
If you received insurance coverage through your employer in 2014, follow these steps;
1. By the end of January 2015, you’ll receive a Form W-2. You may also receive a 1095-C. Hold onto each of these.
2. Your employer is not required to send you Form 1095-C. If they do, you’ll notice your health insurance information listed. You may want to review this form. Next year, you’ll definitely receive one.
3. Make sure to save Form W-2. In Box 12, your insurance information will be provided. This includes both;
- the portion of insurance paid by your employer
- the portion of insurance you paid
4. Once you’re ready to prepare your 2014 tax return, have your W-2 Form on hand.
5. After creating an account on RapidTax, enter your 2014 tax information.
6. The RapidTax application will ask you about your 2014 insurance coverage.
7. You’ll indicate that you were covered through your employer and will then be asked to provide the information listed in Box 12 of your W-2 Form.
So will I receive the Obamacare Premium Tax Credit?
No. The Premium Tax Credit is only offered to those enrolled in the Health Insurance Marketplace. If you’re insurance is covered under through your place of employment, you won’t receive it.
Why not? When filing your taxes, you’ll notice that insurance premiums paid by both you and your employer (the amounts listed in box 12 of your W-2) are not taxed. These amounts are not included as your total taxable income, meaning your health care is already subsidized by tax breaks.
What’s the Easiest way to Report Insurance?
If you’re hoping to report your insurance information and file your taxes quickly, file your taxes online with RapidTax.
On RapidTax, the 2014 Tax Application is user-friendly, meaning you’ll just follow prompts and enter your tax and insurance information as reported on your W-2 forms.
No need to calculate your taxes yourself- the RapidTax site will do it for you. If you have questions along the way, the RapidTax team is standing by via phone, chat and email support.
Create an account on RapidTax today to report your insurance information and e-file your 2014 tax return. Don’t wait- the IRS shuts down the e-file system on October 15 to prepare for the upcoming tax season.
Photo via opensource.com on Flickr
