Being asked for proof of insurance sounds eerily liked being asked to provide your license, registration, and proof of insurance when getting pulled over by a police officer, however with the IRS in full force this year, there seems to be a new traffic cop out there looking for uninsured folks. As we all work through both our own personal and corporate taxes, one of the more daunting tasks revolves around providing proof of health insurance coverage. Here are a few common things to remember when completing your taxes this year.
1. The IRS is asking a simple question – did you have health insurance this past year (2015)? Yes or no? If the answer is no, you better have a very good reason to this. If the answer is yes, you do not need to provide immediate verification of this, but you will be required to provide verification is audited.
2. There are several new forms being required by the IRS this year. Most importantly for employers with more than 50 full time employees, you are required to provide your employees with a 1095C and file a 1094C on behalf of your company.
3. All covered individuals will be receiving a 1095B in the mail, directly from the health insurance carriers, providing information on your coverage for the year that you should keep on file should you need it down the road.
4. Lastly, if for some reason you did not have health insurance coverage for 2015, get ready to pay up. You will be paying either 2.5% of household income (up to a maximum) or $695 per adult / $347.50 per child, whichever is greater.
Bottom line is that no matter what you read about or hear on the news, Obamacare is not going anywhere for the time being. Make sure you have your proof of insurance ready in case you get pulled over.