Yes the rules of ACA - affordable care act, are upon us. And of course there are 3 new forms that are involved. And yes, this is more requirements to the income tax filing process. You will need either forms 1095A or 1095B or 1095C depending on the source of your health coverage.

Below are several articles that we felt spells out the main points you need to be aware of:

The ObamaCare Mandate and How You Can Qualify for an Exemption from the Tax "Penalty"

ObamaCare Mandate: Those who choose not to purchase insurance will have to pay a tax "penalty" unless they qualify for an exemption. Exemptions from ObamaCare's tax "penalty" mandate are available to a number of Americans. We will cover all of the ObamaCare exemptions below, but first let's take a look at how to avoid the fee and what happens if you don't get covered.

FACT: The fee is sometimes called a penalty, fine, or Individual Shared Responsibly Payment. It is part of the Individual Shared Responsibility Provision, which is often called the Individual Mandate. On this page we will discuss exemptions from the mandate's requirement to obtain coverage or pay a fee.

Avoiding the ObamaCare Fee

The Individual Mandate (AKA the Individual Shared Responsibility Provision ) is the part of the Affordable Care Act that says you must obtain and maintain minimum essential coverage throughout the year, get an exemption, or pay a fee on your Federal Income Taxes for each month you, or your dependent, go without coverage.

To avoid the penalty you must obtain minimum essential coverage and maintain it throughout the year or get an exemption. Get covered during open enrollment 2015 starting November 15th, 2014 and ending February 15th, 2015. Most Health Plans sold outside of open enrollment do not count as minimum essential coverage (the type of coverage you need to avoid the per month fee).

How to Qualify For An Exemption

The easiest way to qualify for an exemption is to go toHealthCare.Gov and sign up for a marketplace account. When you sign up, you automatically find out if you qualify for some exemptions and might even find you qualify for lower costs on coverage. You can qualify to shop for a catastrophic planwith lower premiums if you obtain a Hardship Exemption.

If you plan on applying for an exemption, don't leave it to the last minute. In most cases, you'll have to fill out a form and wait for confirmation before you can report the exemption. In addition, many exemptions require certain documentation to verify you qualify. Obtaining that documentation also takes time. Waiting can mean a delay of your Federal Tax Refund.

There are many exemptions from the fee and according to theCBO as many as 26 million Americans will qualify for one. Look below to see if your qualify for an exemption from the tax penalty on your yearly Federal Income Taxes.

FACT: If you are over 30, only a Hardship Exemption will qualify you to shop for Catastrophic coverage and not paying the fee. Other exemptions will simply exempt you from paying the fee, but won't qualify you to purchase a low premium Catastrophic health plan.

How Much is the ObamaCare Fee?

The fee for not having insurance increases each year. See below for 2015 and 2014 fee.

In 2015, the Individual Shared Responsibility fee for not having insurance is $325 per adult and $162.50 per child (up to $975 for a family), or 2% of your taxable income, whichever is greater. The monthly fee is 1/12 of the total fee excluding coverage gap exemption. See Individual mandatefor more details on the fee.

For the 2014 tax season, the Individual Shared Responsibility fee for not having insurance is $95 per adult and $47.50 per child (up to $285 for a family), or 1% of your income, whichever is greater. The monthly fee is 1/12 of the total fee excluding coverage gap exemptions. See Individual mandatefor more details on the fee.

Find out how the fee works moving forward.

What Happens if I'm Not Exempt From ObamaCare and Don't Pay the Fee

If you decide not to get coverage, and don't qualify for an exemption, then you'll have to make an Individual Shared Responsibility payment on your income tax return for each month you went without minimum essential coverage.

Can I Go to Jail for Not Paying the Fee?

The IRS cannot enforce the Individual Shared Responsibility Provision with jail time, liens, or any other of typical methods of collection. The only way for the IRS to collect the fee for not having health insurance, if you choose not to pay it, is for them to withhold the money you would get back (Federal Income Tax Refund) from the IRS after you file your income tax return.

How Do I File my Taxes for the Fee?

You'll get a 1095-A, 1095-B, or 1095-C form from your insurer about what months you had coverage, you'll use this to file your taxes. If you had an exemption for any months you may need a ECN number provided by the Health Insurance Marketplace. Find out details on how you file taxes for ObamaCare see our pages on filing taxes under the Affordable Care Act.

Full List of ObamaCare Tax Exemptions

The mandate's exemptions cover a variety of people including: members of certain religious groups and Native American tribes, undocumented immigrants (who are not eligible for health insurance subsidies under the law), incarcerated individuals, people whose incomes are so low they don't have to file taxes (in 2014, $10,000 for a single person and $20,000 for a married couple), people for whom health insurance is considered unaffordable (where insurance premiums after employer contributions or federal subsidies exceed limits of family income), and those going without insurance for less than three months in a row.

If you belong to any of the groups listed below you are exempt from ObamaCare's mandate to "obtain minimum essential coverage" (i.e. buy insurance):

• Unaffordable Coverage Options- People who would have to pay more than 8% of their household income (MAGI) for the lowest priced Marketplace Health Insurance after subsidies qualify for this exemption. or if employer insurance is unaffordable, costing more than 9.5% after employer contributions for self-only coverage, you will likely quality for this exemption. You must apply for this exemption. Remember that your MAGI is not your taxable income; it includes the amounts you invested into non-taxable savings accounts, income from Social Security, and educational expenses.

NOTE: If your employers coverage is considered affordable (less than 9.5% of your household income), you will not qualify for an exemption from the fee yourself, but your uninsured dependents will be. The fee is 1/12 the fee per month for each familymember without coverage.

• Low Income/No Filing Requirement- People with incomes below the IRS threshold required for filing taxes(in 2013, $10,000 for a single person and $20,000 for a married couple) are exempt. This exemption is automatic.

• Hardship Exemption- The Health Insurance Marketplace, also known as the Affordable Insurance Exchange, has certified that you have suffered a hardship that makes you unable to obtain coverage either for financial or other reasons. There are many situations which will qualify you for a hardship exemption, so please see below for the full list. Essentially, if you wanted to buy health insurance, but were unable because of a hardship, you qualify. All you need to do is apply and provide documentation of your hardship.

NOTE: If your plan was canceled or became unaffordable in 2014 because of the Affordable Care Act, you qualify for a hardship exemption in 2014 only and were not required to obtain coverage for 2014.

• Short Coverage Gap Exemption- If go without coverage for less than three consecutive months during the year you will not be responsible for the fee for those months. This allows people who don't have a plan, to sign up by the end of open enrollment (typically Feb 15th each year) and still be exempt from the fee. It also allows folks who have had coverage throughout the year, downtime between insurance options for when they experience a life change like moving or switching jobs.

NOTE: There was another coverage gap exemption that applied to those who purchase marketplace insurance between March 15th and March 31st, 2014 (that coverage didn't start until May 1st, 2014). This allowed for an extra month without coverage or the fee in 2014.

• Religious Conscience- People can qualify for religious exemptions. The Social Security Administration administers the process for recognizing these sects according to the criteria in the law.

• Health Care Sharing Ministry- If you are a member of a recognized health care sharing ministry you qualify for an exemption.

• Not lawfully present- If you are an undocumented immigrant; you are not legally a U.S. citizen, a U.S. national, or an alien lawfully present in the U.S.

• Incarceration- People who are incarcerated are exempt.

• Indian tribes- Members of a federally recognized Indian tribe are exempt.

For those who can afford it and choose not to purchase health insurance the tax will be unavoidable. The money collected from these taxes goes towards funding ObamaCare and subsidizing hospitals who will have to cover unpaid emergency room visits. The money is also a down payment on your almost inevitable use of the health care system.

NOTE: ObamaCareFacts.com is a free informational website, nothing on our site should be taken as legal advice. Check out the official IRS website on exemptions and the Individual mandate for additional details.

ObamaCare Hardship Exemptions

ObamaCare's hardship exemptions apply to those who have had certain life circumstances that qualify as "hardships". There are many things that will qualify you for a hardship, but in simple terms: If you wanted to buy health insurance and you were unable to because of a life circumstance or financial situation, than you most likely qualify for a hardship exemption. If any of the following circumstances apply to you, you may qualify for a hardship exemption from paying fee. You'll need to submit documentation to be granted an exemption in most cases.

Information below obtained from healthcare.gov

ObamaCare Hardship Categories and Documentation You may qualify for a hardship exemption if you experienced one of the following:
Hardship number	Category	Submit this documentation with your application
1.	You were homeless.	None
2.	You were evicted in the past 6 months or were facing eviction or foreclosure.	Copy of eviction or foreclosure notice
3.	You received a shut-off notice from a utility company.	Copy of shut-off notice from a utility company
4.	You recently experienced domestic violence.	None
5.	You recently experienced the death of a close family member.	Copy of death certificate, copy of death notice from newspaper, or copy of other official notice of death
6.	You experienced a fire, flood, or other natural human-caused disaster that caused substantial damage to your property.	Copy of police or fire report, insurance claim, or other document from government agency, private entity, or news source documenting event
7.	You filed for bankruptcy in the last 6 months	Copy of bankruptcy filing
8.	You had medical expenses you couldn't pay in the last 24 months.	Copies of medical bills
9.	You experienced unexpected increases in necessary expenses due to caring for an ill, disabled, or aging family member.	Copies of receipts related to care
10.	You expect to claim a child as a tax dependent who's been denied coverage in Medicaid and the Children's Health Insurance Program (CHIP), and another person is required by court order to give medical support to the child.	Copy of medical support order AND copies of eligibility notices for Medicaid and CHIP showing that the child has been denied coverage
11.	As a result of an eligibility appeals decision, you're eligible either for:1) enrollment in a qualified health plan (QHP) through the Marketplace, 2) lower costs on your monthly premiums, or 3) cost-sharing reductions for a time period when you weren't enrolled in a QHP through the Marketplace.	Copy of notice of appeals decision
12.	You were determined ineligible for Medicaid because your state didn't expand eligibility for Medicaid under the Affordable Care Act.	Copy of notice of denial of eligibility for Medicaid
113.	You received a notice saying that your current health insurance plan is being cancelled, and you consider the other plans available unaffordable.	Copy of notice of cancellation
14.	You experienced another hardship in obtaining health insurance.	Please submit documentation if possible
NEED HELP WITH YOUR APPLICATION? Visit HealthCare.gov or them at 1-800-318-2596. Para obtener una copia de este formulario en Español, llame 1-800-318-2596. If you need help in a language other than English, call 1-800-318-2596 and tell the customer service representative the language you need. We'll get you help at no cost to you. TTY users should call 1-855-889-4325.

Applying for Exemptions

You can learn about applying for exemptions here. In some cases, you'll need to actually fill out a form and send it to the marketplace before you officially qualify for the exemption. Don't leave this until the last minute.

Applying for a Hardship Exemption

To apply for a hardship exemption you can fill out the exemption form: Individuals who experience hardships (PDF). See instructions to help you fill out an exemption application (PDF).

For hardship exemptions, you should apply early, you need to get approved first and then wait for confirmation to be mailed to you. You'll get an unique exemption certificate number (ECN) which can be used to qualify to shop for catastrophic coverage or used to confirm exemption when filing your taxes.

Learn more about hardship exemptions for Healthcare.Gov.

NOTE: If you qualify for a hardship exemption, you'll also qualify for a catastrophic plan. Catastrophic plans are high deductible plans with low premiums. Since all plans coveressential benefits, it's a great alternative to going without coverage. Even if you have an exemption.

Proof of ObamaCare Exemption

Most exemptions will require documentation, as listed above. If you cannot provide documentation, you may still qualify for certain exemptions, like for being homeless. That safest way to avoid the fee is to simply obtain health insurance. Some exemption will buy you more time to sign up and these tend to be the ones with more flexible requirements of proof. Other exemptions simply allow you to not pay the tax and these will tend to require proof.

What Types of Insurance Will Help Me Avoid the Fee?

To avoid the fee you'll need to obtain minimum essential coverage. Most private health insurance options, Medicare, Medicaid, CHIP, TRICARE and all insurance sold on the marketplace will count as minimum essential coverage. In addition, people under 30 and those with hardship exemptions qualify purchase a Catastrophic plan which is also minimum essential coverage.

Most insurance types offered between each open enrollment will be short term health insurance, fixed benefit plans and supplemental insurance will not help you avoid the fee on their own, but they will help you be covered health-wise. Also, having one of these types of insurance doesn't prevent you from qualifying for an exemption or hardship exemption to avoid the fee.

Not sure if your plan will help you avoid the fee? Simply ask your insurer, "is your plan ACA compliant" or "does it counts as minimum essential coverage?" Most major medical types count.

Obamacare and Your 2014 Taxes

by Elizabeth Renter on August 29, 2014 | posted in Health insurance, Obamacare

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The complexities of the Affordable Care Act didn't end with the health insurance mandate that rolled out in late 2013.

The requirements, fees and subsidies will re-emerge during tax season, perhaps affecting how much of a tax refund you are entitled to or how much you owe, certainly adding more work to your tax preparation.

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Though April 15, 2015, seems a long way off, it's time to begin thinking about how Obamacare will affect your 2014 income taxes.

Around 8 million previously uninsured Americans gained coverage under the ACA during the 2013-2014 open enrollment period, either on Healthcare.gov, also referred to as the Marketplace, or through state exchanges.

Millions more have health insurance coverage through an employer or through Medicare and Medicaid. Still, some remain uninsured. The uninsured must either qualify for an exemption from the mandate or face penalties. Everyone — the insured and uninsured alike — will see changes to their income tax filings.

The ACA requires you and everyone in your family to either have qualifying insurance known as "minimal essential coverage"; qualify for an exemption to the requirement; or make a "shared responsibility" payment (commonly referred to as a penalty) when you file your 2014 tax return.

A question about your health coverage will appear on your Form 1040 for the first time with the 2014 tax year.

New Tax Forms

The first major change on 2014 tax returns will be the requirement that you report your health insurance status when you file. For most, this will be a simple process, as you will receive the necessary forms in the mail, similarly to how you receive a W-2 from your employer. In July, the IRS issued drafts of these forms, known as the 1095A, 1095B and 1095C.

Form 1095-A: If you purchased health insurance through your state exchange or the federal Marketplace, you will receive this form indicating your coverage.

Form 1095-B: This form will come directly from the health insurance company if you sought private insurance outside of the state exchanges.

Form 1095-C: If your employer furnishes your health insurance, it will provide you with a 1095-C indicating your coverage.

The appropriate 1095 form will come to you, and employers and insurance companies will file other versions (1094 forms) directly with the IRS. These will serve as your proof of coverage and you will put information from them onto your Form 1040.

Proof of Exemption

If you are exempt from the health insurance mandate, you'll need to provide proof. Qualifying exemptions vary but include: having an approved religious objection to health care coverage; having an income below the threshold that requires you to file a tax return; if you went without coverage for less than three consecutive months in the year; or if coverage is unaffordable, with premiums accounting for more than 8% of your annual income.

Some exemptions must be granted through the Marketplace, while others can be claimed on your tax return. If you've qualified through the Marketplace, you should have already received a certificate of exemption. For more information on whether you qualify for an exemption and how to exercise it, Healthcare.gov provides more details.

How You Could Owe

Some people received subsidies in the form of an advanced tax credit to help cover the costs of their premiums. Eligibility for these money-saving subsidies was based on estimated 2014 income when applying for health coverage. If your 2014 tax return shows your actual earnings were higher than estimated, eliminating your eligibility for subsidies or determining you were simply entitled to less, you could owe the government.

On the other hand, if you didn't receive an advanced subsidy and purchased your health insurance through the Marketplace or state exchange, you could be entitled to that tax credit when you file your tax return.

The more widely known penalty you could face on your 2014 taxes is the one you are required to pay if you or a family member for whom you are responsible went without insurance coverage without qualifying for an exemption.

This individual shared responsibility payment for 2014 is the greater of:

• 1% of your household income above the filing threshold set by the IRS for your filing status, or
• a flat amount of $95 per adult and $47.50 per child, capped at $285 per family.

Filing taxes under Obama Care:

There are several reasons you may have to file taxes under ObamaCare (the Affordable Care Act). Learn how to file your ObamaCare taxes for 2014 and beyond.

Reporting Health Coverage to the IRS

Everyone who has to file taxes for 2014 will have to at the very least report about the status of their health coverage throughout the year.

Whether you had health coverage all year, went without health insurance for more than 3 consecutive months, need to adjust MAGI for Premium Tax Credits, need to confirm an exemption, your business qualified for tax credits through the marketplace, or you were required to insure your employees but didn't, you'll need to report it on your Federal income tax returns.

We have covered most of the tax filing requirements below in an easy to understand way, for full details go to IRS.gov.

NOTE: If you don't have to file a tax return because your income is too low, then you are automatically exempt and don't need to report the information below. Learn about the filing limit (PDF)

How to Report ObamaCare 2014 Taxes

You will report minimum essential coverage, report exemptions, or make any individual shared responsibility payment when you file your 2014 federal income tax return in 2015.

The IRS suggests that filing your taxes electronically is the easiest way to file a complete and accurate tax return. Electronic Filing options include free Volunteer Assistance, IRS Free File, commercial software and professional assistance.

How to Report Minimum Essential Coverage

You will report minimum essential coverage using a 1095-A, 1095-B, or 1095-C form sent by your insurance provider. It will show what months you had coverage and how much assistance you got. If you had multiple insurance sources, you may get more than one form. This will help you to figure out if you owe money for any months that you went without coverage.

How to File Taxes for Not Having Coverage

If you didn't obtain and maintain minimum essential coverage for at least 9 consecutive months throughout the year, you'll need to make a Shared Responsibility Payment for each month you went without coverage, unless you obtained an exemption.

For 2014 the annual fee is $95 per adult and $47.50 per child (up to $285 for a family) or 1% of your taxable income, whichever is greater.

You'll need to make a Shared Responsibility Payment for 1/12 of the above amount, per household member, for each month they went without coverage.

Check out these basic examples of the payment calculation and the federal tax filing requirement thresholds. For more detailed examples, see the individual shared responsibility provision final regulations.

How to File Taxes for ObamaCare Exemption

To report an exemption on your taxes you must first apply for an exemption through the Marketplace. After you have been granted an exemption the Marketplace will mail you a notice of the exemption eligibility result. If you're granted an exemption, the Marketplace notice will include your unique exemption certificate number (ECN).

You'll simply report the ECN on your Federal income tax return.

IMPORTANT: The exemption application is a paper application that must be submitted to the Health Insurance Marketplace and then approved. Leaving this to the last minute is a surefire way to give yourself a headache (which is only covered if you have health insurance).

How to File Taxes for the Premium Tax Credit

If you received Advanced Premium Tax Credits, either in part or in whole, or if you plan to claim the Premium Tax Credit, you must file a federal income tax return.

NOTE: It's important to verify your income and report changes in circumstances throughout the year. If your income changed you may end up receiving too much or too little in advance. This can affect your refund or balance due when you file your 2014 tax return in 2015.

If you choose to get it now (Advanced Premium Tax Credits): When you file your tax return, you will subtract the total advance payments you received during the year from the amount of the premium tax credit calculated on your tax return. If the premium tax credit computed on the return is more than the advance payments made on your behalf during the year, the difference will increase your refund or lower the amount of tax you owe. If the advance credit payments are more than the premium tax credit, the difference will increase the amount you owe and result in either a smaller refund or a balance due.

If you choose to get it later (Premium Tax Credit): You will claim the full amount of the premium tax credit when you file your tax return. This will either increase your refund or lower your balance due.

Learn more from the IRS.

Reporting ObamaCare for Small Businesses

Most businesses will simply defer tax filing duties to their accountant. Small businesses who received a tax credit for health insurance and will be filing themselves go to IRS.gov for detailed filing information.

ObamaCare Tax Return Forms

You will report ObamaCare taxes on your Federal income tax returns using a 1095-A, 1095-B, or 1095-C form sent by your insurance provider. If you got an exemption you'll need your ECN which you have to obtain from your state's Marketplace.