Starting in 2014 all tax-filers must have healthcare insurance. Tax-filers who obtain qualifying healthcare insurance receive a
1095 form from an
employer, a
healthcare insurance company, or a
healthcare exchange (marketplace). The 1095 serves as proof that the individual has obtained healthcare insurance. For the tax year 2014 only Form 1095-A provided by a healthcare exchange is required by the IRS. Individuals who were not insured during the tax year are required to make a payment when filing their tax return, unless they qualify for a
tax exemption. An exemption certificate number is required in some cases for obtaining an exemption on a tax return. In 2014 the payment amount was 1% of income or $95 per adult ($47.50 per child) limited to a family maximum of $285 (national average premium for a
bronze plan), whichever is greater. In 2015 the penalty increased to $285 per adult or 2% of income above the limit.
The New York Times reported in February 2015 that up to six million uninsured taxpayers are expected to have to pay a penalty for not obtaining health insurance in 2014.
Americans residing outside the United States Americans permanently residing outside the United States are exempt from the requirement to obtain health coverage in the United States. However they must file
Form 8965 to obtain an exemption. Failure to file this form may result in a tax penalty.
American citizens and American residents residing outside the United States American citizens and American residents residing outside the United States for part of the year can also get an exemption but only if they reside outside the U.S. for more than 330 full days during a twelve-month period.
Canadians residing in the United States part of the year There have been some changes that may affect Canadians who reside in the United States part of the year: • In June 2014 a new cooperative program between
Canada and the
United States titled the
Entry/Exit Initiative of the Perimeter Security and Economic Competitiveness Action Plan went into effect. • If a Canadian person spends more than 182 days within a calendar year in the United States, they may considered a
U.S. Person for tax purposes under IRS rules. • Canadians who spend more than 182 days within a calendar year in the United States, can try to overturn U.S.-person-status by filing
Form 8840 no later than June 15 of the year the tax return must be filed. • Being a
U.S. person may have damaging tax effects on Canadians, because they must file
U.S. tax returns on their world-wide
income (even if none of the income is derived in the United States). • Even those who owe no tax may be faced with large costs associated with filing complicated tax returns in both Canada and the United States, including such forms such as
FBAR and
form 8965. == Small Business Health Care tax credits ==