iStock/ThinkstockThe individual mandate part of the Affordable Care Act means you have to have health insurance.
If you get it through work, that basically means checking a box on your tax form. But if that’s not the case, preparing your taxes will be slightly different.
“If you went to the marketplace directly, you’ll be receiving a form 1095-A,” explains tax attorney Janice Hayman. “And you must have this form when you do your taxes — especially if you receive a subsidy.”
The penalty for not having health coverage is $695 per adult, or 2.5 percent of your household income, whichever is higher.
Generally speaking, Hayman says, a two-month gap is okay.
“In these cases there should be some documentation showing when their coverage started, when their coverage ended. And as long as it’s not more than two months, then they will not be penalized,” she explains.
If you need more information about whether you have to pay a fee and how much it might cost, there’s a calculator on the IRS taxpayer advocate website.
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