Taxpayers in New Hampshire have until April 15 to file their federal taxes for 2015 and show that they had health insurance coverage last year to avoid a tax penalty. Any taxpayers who were covered through the Health Insurance Marketplace and received Advance Premium Tax Credits will need to file and reconcile their taxes for 2015 to continue receiving tax credits and insurance from the Marketplace in the future.
Most health insurance coverage must meet the definition of “minimum essential coverage.” This includes Medicare Part A, Medicaid, employer-based coverage, and coverage purchased through the Heath Insurance Marketplace. The answer to the coverage question on the tax form will be “Yes” if everyone in the tax household had coverage for all 12 months of the year. Taxpayers who had coverage will receive a tax form (1095-A, 1095-B, or a 1095-C) in the mail that they should retain for their personal records. No documentation is required to confirm coverage when filing taxes.
If not all members of the tax household had coverage for 12 months in 2015 they may qualify for an exemption. Exemptions include having a gap in coverage for less than three months or financial hardship. Taxpayers who qualify for an exemption will not have to pay the fine. For a full list of exemptions and how to apply for them go to www.healthcare.gov.
Taxpayers who do not qualify for an exemption will be subject to the “shared responsibility payment.” This tax penalty is paid through the tax-return process by either reducing the tax refund or resulting in a balance due to the IRS.