Getting Ready For Tax Day

Featured in this Show

• Some Taxpayers Should Keep An Eye Out For Forms About Their Health Coverage, Expert Says

  Download

  As of this week, it’s still three months until Tax Day, which falls on April 18 this year. While waiting for W-2s or 1099s to show up, experts say there are a few new documents some taxpayers should keep an eye out for.

  The Affordable Care Act has brought changes to the 2015 federal income tax form, according to the IRS. This will be the first year that taxpayers might get multiple information forms about health coverage people had in 2015. They can can use to complete tax returns

  While the requirement to prove if a person had insurance was in place last year, it was tough for tax professionals because “there was no form that was available generally last year that said, ‘I have health insurance and it covers all of these people in my family,’ ” said Mary Mellem, who operates Ashwaubenon Tax Professionals with her husband.

  According to Mellem, the forms are:

  • Form 1095-A, the Health Insurance Marketplace Statement.

  Mellem said this document was sent out last year as well. It goes out to anyone who purchased their health insurance through the exchange.

  “They had to have it because the credit for the health care for those that bought it through the exchange was available last year,” she said.

  • ​Form 1095-B, Health Coverage:

  Here’s what Mellem calls “the second piece of the puzzle.” The 1095-B will go out to people who have insurance — be it through their employer, union or the government.

  • Form 1095-C, Employer-Provided Health Insurance Offer and Coverage

  This, Mellem said, is a document that will be issued by large employers — those with 50 or more full-time equivalent or full-time employees. It’s a bit different than the others.

  “It’s really the document that the large employers have to put out to prove that they offer health insurance or that they have an exception so that they’re not penalized,” she said. “That one could have some individual information, but only if the large employer is self-insured.”

  Mellem said people should keep an eye out for those documents and bring them to a tax appointment if they’re using professional tax services, or keep them on hand if they’re asked about it. According to the IRS, these forms shouldn’t be attached to a tax return.

  The agency provides a question-and-answer section on its website about the new forms.

  The documents were supposed to be out to individuals by Jan. 31. However, Mellem said the IRS gave an extension to the providers of these documents.

  “When you file your taxes, you may or may not have it, but remember, the IRS has, will have this document, and they will be able to cross-check if necessary, if you say one thing and that isn’t the way it is,” she said.

  If a person expects to receive Form 1095-A, the IRS advises that that individual wait to file their 2015 income tax return until that get that form. People expected Form 1095-B or Form 1095C don’t need to wait.

  Overall, Mellem said, the best thing people can be doing right now is gathering the forms and data that they have at their disposal as they prepare to file. That includes information about itemized deductions a person might not get specific forms for charitable contributions and medical expenses.

  The IRS began accepting individual returns on Jan. 19. However, Mellem said, people who haven’t gotten forms like W-2s or 1099s shouldn’t panic. The issuer is supposed to have those documents in the hands of the individual by Jan. 31.