Did you obtain a subsidy from a well being change in 2023? If that’s the case, you have to report it in your tax return. The IRS is making this very clear with current mailed reminders. 

What else do you could know? Listed below are some key factors associated to well being care info kinds and the reporting you do in your 2023 freelance tax return:

1. Be sure to maintain monitor and report the quantities on all Well being Care Data Kinds you might have acquired. These might embody 
   1. Type 1095-A: Well being Insurance coverage Market Assertion
   2. Type 1095-B: Well being Protection
   3. Type 1095-C: Employer-Supplied Well being Insurance coverage Supply and Protection

In case you didn’t obtain these kinds by January 31 (when they’re as a result of be despatched), you do not want to attend for them to file your taxes. 

2. Watch out for the shared accountability cost in case you are submitting retroactive returns. The person shared accountability provision which impacts returns for tax years 2014-2018 on the federal level requires taxpayers to do at the least one of many following:

1. Have qualifying well being protection known as minimal important protection.
2. Qualify for a well being protection exemption.
3. Make a shared accountability cost with their federal earnings tax return for the months that with out protection or an exemption.

The person shared accountability penalty was eradicated on the federal level after the top of 2018. Nonetheless, some states carried out their very own particular person mandates and related penalties for 2019 and past together with New Jersey and Rhode Island, so you should definitely test your individual state taxation division to see if this requirement applies to your state tax return.

3. The Premium Tax Credit score (PTC) is a refundable credit score that helps eligible people and households cowl medical health insurance premiums bought by means of the Well being Insurance coverage Market. In case you acquired a subsidy, you have to file  Type 8962 to account for the subsidy.  Failure to take action will outcome within the IRS sending you a letter asking for lacking info. 

The quantity of the month-to-month premium tax credit score for 2023 is the lesser of (1) the month-to-month premium for a professional plan by which you and your partner, and any dependents are enrolled, or (2) the surplus, if any, of the premium for the second-lowest-cost silver plan that’s accessible on the change in your space  over an quantity equal to 1/twelfth of a specified proportion of your family earnings for the yr, in accordance with the brackets of the federal poverty level (FPL) as famous right here. In case you acquired an excessive amount of of a subsidy, you have to to repay the surplus premium tax credit score  through your tax return. In case you didn’t obtain sufficient of a subsidy,  you  will obtain a web premium credit score in your tax return.

 A very powerful factor to remember this tax season is to precisely report any subsidies acquired and observe the IRS pointers to make sure a easy tax submitting course of. In case you have particular questions or want additional help, contemplate looking for recommendation from a tax skilled.