How the Health Care Law Affects Your 2014 Taxes

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The Affordable Care Act has some provisions that affect your 2014 tax return. For many, it means simply checking a box on their return to report health care coverage for themselves and their dependents for 2014. Some might report being eligible for an exemption. Others will need to calculate a shared responsibility payment.

Regardless of how the Affordable Care Act affects your taxes, you will need to have the correct documentation. This paperwork does not go to the IRS, but if the IRS comes back to you with questions, you will want to keep it handy. You will want to keep this as well as your other tax documents generally for three years after you file.

If you obtained health insurance coverage through the Marketplace in 2014, the unfamiliar form you receive this year is the Form 1095-A. This form outlines information about you, family members covered under your policy, and information about monthly coverage. Use this form to fill out the Form 8962 Premium Tax Credit (PTC).

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