How do we prove health insurance next year?

[dickthegrouch]

Anyone know how we are expected to prove that we have the requisite health insurance next year?

I am in the bucket of people who currently have COBRA which is going to expire at some stage.

When and how are we going to prove that we shouldn't be fined? I have nothing other than a series of electronic images of paid cheques to a COBRA administrator. How the hell do I turn those into proof?

[PoliticAverse]

1. Your insurance company should be reporting that you have insurance to the IRS,

the IRS has yet to release final specifics on how the proof will be handled on your tax return.

From: http://www.irs.gov/uac/Questions-and-Answers-on-the-Individual-Shared-Responsibility-Provision

Reporting Coverage or Exemptions or Making Payments

...

24. Will I have to do something on my federal income tax return to show that I had coverage or an exemption?

The individual shared responsibility provision goes into effect in 2014. You will not have to account for coverage or exemptions or to make any payments until you file your 2014 federal income tax return in 2015. Information will be made available later about how the income tax return will take account of coverage and exemptions. Insurers will be required to provide everyone that they cover each year with information that will help them demonstrate they had coverage beginning with the 2015 tax year.

[Capt. Obvious]

2. In Ma. insurance company mails you proof to include in filing

[dickthegrouch]

3. Oh, great (possibly)

So if things go the way I expect, I'll need three of four new bits of paper to give the IRS

COBRA coverage, interim coverage, new employer coverage (and, worst case, new COBRA after yet another f'ing layoff).

Thanks for the information and clarification that no paperwork is necessary in 2014.

So the next silly question is: what if my 2013 income is ~$75k and my 2014 income is zero? How long is my 2013 income supposed to last in terms of qualifying me for subsidised ACA benefits?

[frazzled]

4. The insurers will provide the paperwork

Just like documents indicating mortgage interest payments or capital gains, or state taxes paid are sent to you (or now, available on line).

Why are you so grouchy? It's not good for your health. You can get an ulcer.

If your income in 2014 is zero, you will be covered under Medicaid.

[PoliticAverse]

6. "If your income in 2014 is zero, you will be covered under Medicaid." Yes the poster is

apparently in California which did expand Medicaid.

[PoliticAverse]

5. The subsidies for 2014 insurance are determined by your 2014 income only.

If you wish the subsidies to be paid to the insurance company in advance you'll have to estimate your 2014
income when you sign up for the insurance.

See: http://www.irs.gov/uac/Newsroom/Questions-and-Answers-on-the-Premium-Tax-Credit

[FarCenter]

7. If your estimate of 2014 income is too low, subsidy will be too high, IRS will recapture 4/15/2015

This may also involve a underpayment penalty.

[PoliticAverse]

8. Yes, for many low income people it's going to be difficult to make a good guess what their

actual income will be and some will owe additional taxes at the end of the year.

Also people on Medicaid may have to switch to subsidized insurance.

Not an ideal system.

[L0oniX]

9. When will I recieve and actual paper government notice?