How to Prove You Have Health Coverage in 2014
I know everyone must have health insurance in 2014. How do I show that I have coverage so I can avoid the penalty for being uninsured? --Jim Harper, New Smyrna Beach, Fla.
You must provide information about your health insurance coverage (or any exemption from the requirement) when you file your 2014 federal income tax return in 2015, but the IRS has not yet issued instructions, says Tom DiLorenzo, senior manager at Ernst & Young.
The Affordable Care Act requires almost everyone to have health insurance or pay a penalty, starting at $95 per person or 1% of household income in 2014, whichever is higher, and gradually rising to $695 per person or 2.5% of income in 2016. To avoid the penalty, you must have health insurance that qualifies as “minimum essential coverage.” You can check requirements for policies at HealthCare.gov.
Got a question? Ask Kim at firstname.lastname@example.org.