Taxpayers Tripped-Up By Late Health Law Forms

 

As the 2015 tax filing season gets underway, tax preparers said a delay in health law tax forms is tripping up some consumers, while others want details about exemptions from increasingly stiff penalties for not having insurance.

Under the law, most people must have health insurance or pay a fine. In 2015, the penalty was $325 per adult and $162.50 per child up to $975, or 2 percent of household income, whichever is greater.

This is the first year that employers, insurers and government programs such as Medicare and Medicaid are required to send consumers tax forms that report whether they offered or provided health insurance that was considered affordable and adequate under the law.

The forms — 1095-B or 1095-C — are designed to help consumers in filling out their taxes but the forms don't need to be filed with their tax returns. The issuers also send copies to the Internal Revenue Service.

Some consumers, however, may not receive the forms until shortly before the April 15 tax filing deadline because the IRS has pushed back the due date from Jan. 31 to March 31 for employers and others that provide insurance. Learn More