How Does My Healthcare Plan Impact My Taxes?

This year tax day falls on April 18 which is a little later than normal, but still quickly approaching—especially if you haven’t filed yet. Since time is of the essence, we thought it would be helpful to provide answers to some of the more common tax questions as they relate to healthcare and tax forms.

I’m receiving a subsidy through the Affordable Care Act (ACA) Health Insurance Marketplace. What forms do I need to fill out?
You should have received a form from U.S. Department of Health and Human Services (HHS) that tells you how much subsidy you received for 2016 and what plan you were enrolled in. You should use this information to complete a Form 8962 when you file your income taxes. This form reconciles the amount of subsidy you received based on your estimated income with how much you should have received based on your actual income. If you don’t complete this form, you may not be able to receive subsidies in the future.

What if I didn’t receive anything from the ACA Health Insurance Marketplace?
You should be able to access another copy of your form through your online account that you set up when you enrolled in coverage. If not, you can call the ACA Health Insurance Marketplace at 1-800-318-2596 and ask for help.
What if my income changed during the year?
It is important to report all income changes to the ACA Health Insurance Marketplace to ensure your subsidy is accurate. If your income increased significantly, you may have to pay back a portion of the subsidy you received. You can report income changes at

What if I only had health insurance for a portion of the year?
If you had a gap in coverage of three months or more, you may owe a penalty for failing to enroll in coverage. This penalty is the greater of 2.5% of your household income or $695 per adult and $347.50 per child in your household. If you had insurance for part of the year, your penalty is reduced.

What if I didn’t have insurance because I can’t afford it?
You may be able to apply for an exemption if there was no coverage available to you that is deemed affordable. Visit for more information about who is eligible for an exemption and how to apply.

How do I avoid paying a penalty in the future?
In the individual market, you can enroll in coverage once a year during the Open Enrollment Period. This period is closed for 2017, but you may be eligible for a special enrollment period if you experience certain life events like moving, having a baby or getting married. Visit to see if you qualify.

Please note that we are not tax experts. These FAQs are based on the knowledge we have from a healthcare perspective. If you need further assistance, we recommend consulting a professional tax adviser.

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