The Patient Protection and Affordable Care Act (referred to as ACA or Obamacare) requires employers and health insurance marketplaces to report health coverage for an individual starting with coverage for 2014 (Code Secs. 6055 and 6056). Individuals who claimed the premium tax credit (explained below) on an advance basis or may be eligible to claim it when they file their federal income tax returns also have special reporting requirements. Those who fail to carry minimum essential health coverage are subject to a penalty unless they can claim exemption from this individual mandate. Claiming the credit or exemption from the individual mandate is effective for 2014 returns. Drafts of new forms that will be used in the next tax season have been unveiled. Here is an overview of the forms and who must file them.
Information Reporting
Third parties such as employers with employer health care plans and the government’s health insurance Marketplace (also referred to as exchanges) are required to report certain coverage information to the IRS and to the individual. This information is used by the individual to demonstrate that he/she is covered and therefore exempt from the penalty for not having the required coverage.
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