Questions and Answers on Consumer Support during
Tax Filing Season
Historically, the individual income tax filing season begins in late January.
Income tax returns are due by April 15th. Due to the ACA, tax filing will require some new forms and increased consumer support. The IRS and kynect have combined to provide the following information:
Basics of the Impact of ACA on the Upcoming Tax Filing Season
Two key tax provisions of the Affordable Care Act (ACA) will affect the 2014
federal individual income tax returns that are filed in 2015:
First, is the individual shared responsibility provision, which took effect on
January 1, 2014. Individuals without coverage and those who don’t
maintain coverage throughout the year must have an exemption or make
an individual shared responsibility payment when they file their 2014 tax
return in 2015.
Second is the premium tax credit (PTC). This provision will affect fewer
individuals and families but is of great significance for those who are likely
to contact kynect.
In order to meet the requirements of the individual shared responsibility
provision,the IRS expects most taxpayers will only need to check
a box on the individual income tax return that they file in 2015 to indicate that
they have met the individual shared responsibility provision.
Tax Forms Consumers will Need to Know
Taxpayers who received or were eligible to receive Payment Assistance will have to:
- Use IRS Form 1095-A, Health Insurance Marketplace Statementto complete IRS Form 8962, Premium Tax Credit (PTC). Form 1095-A will be sent out by kynect to anyone who had a qualified health plan during 2014. It must be sent out by January 31.
Use and submit to the IRS Form 8962, Premium Tax Credit (PTC)to reconcile the advance payments of the premium tax credit that was paid to the insurance company on their behalf and to claimthe premium tax credit if they did not receive payment assistance during the year. kynect calls the advance payments Payment Assistance or Advanced Premium Tax Credit (APTC).
Taxpayers who need to claim an exemption on their tax return will have to:
- Use and submit to the IRS Form 8965, Health Coverage Exemptions to
claim an exemption from the individual shared responsibility payment on their tax return. kynect does not process exemptions. All exemptions are handled through the federal government. More information can be found at healthcare.gov/exemptions.
IRS Tax Forms are available at irs.gov.
The Second Lowest Cost Silver Plan
The IRS will use a benchmark plan to determine the correct amount of Premium Tax Credit that consumers are eligible for in the tax year. The benchmark is the Second Lowest Cost Silver Plan (SLCSP). Consumers will report this information on Form 8962.
If a consumer was enrolled in a health insurance plan through kynect and received payment assistance, the Form 1095-A that they are sent will list the SLCSP for each month. If a consumer did not have payment assistance, they will need to determine their monthly SLCSP by going to kynect.ky.gov.
Add Bronze Info Here
Computer Tax Filing Software Can Help
Because the vast majority of taxpayers (80-90%) rely on tax preparers or use computer
software to complete their income tax return, the IRS has been working closely with
this community. Using tax preparation software is one way to file a complete
and accurate tax return as it guides individuals through the process, does the
math and enters the required information in the appropriate place. By using tax
preparation software taxpayers do not need to have a thorough knowledge of the
new schedules or lines on the tax return. Consumers can visit IRS.gov for information about electronic filing options including IRS Free File.
In addition, the Kentucky Department of Revenue has partnered with the tax software community to provide free electronic filing of 2014 federal and Kentucky returns. Consumers can go to revenue.ky.gov/FFAOffers.htm.
Consumers Wanting More Information Should Go to the IRS
The IRS is conducting an information campaign to educate taxpayers about
some of the basics of the ACA. This campaign includes health care tax tips,
YouTube videos and expanded ACA web pages at IRS.gov/aca.Many of the ACA web pages and publications are available in Spanish. IRS YouTube videos are available in Spanish on the IRS’s Multilinguaand American Sign Language channel.
More Efficient Help AvailableThrough IRSWebsite
In order to assist the most taxpayers in the most efficient manner, consumers should first be directed to the IRS website (IRS.gov/aca). As a second resource, consumers should be given the IRS customer service number (I-800-829-1040).
The IRS website is the quickest, most effective way for a consumer to get answers, however, the IRS will also take questions through its toll free customer service hotline at 1-800-829-1040. This telephone number has been in service and publicized for years and many consumers are familiar with it. Consumer who call this toll free line may receive live or automated assistance (recorded answers).
Expectations RegardingkynectConsumer Support
kynect and its representatives cannot provide consumers with any tax filing advice. If a consumer question cannot be answered through kynect FAQs, then the consumer should be referred to the IRS.
The IRS is strongly encouraging everyone to visit IRS.gov to familiarize themselves
with information on the website. Information is constantly being added to the
website as the IRS prepares for tax filing season. In addition, kynect will be providing training for insurance agents and kynectors, as well as posting a comprehensive set of FAQs for use by both consumers and their assisters.
kynect representatives will be prepared to answer basic questions about Form 1095-A.Some examples of questions kynect representatives will have the ability to answer are below. Insurance agents and kynectorscannot provide information to consumers about tax issues or provide tax advice, such as how to fill out IRS tax forms. kynect has created a special hotline to answer 1095-A questions (1-844-373-2417).
Consumers Questions about their Form 1095-A Information
kynectwill work to resolve consumer concerns regarding the accuracy of the information on their Form 1095-A. kynect will evaluate assertions by consumers that the information is incorrect andreissue a corrected Form 1095-A if necessary.
If consumers feel there is a mistake on their Form 1095-A, they should call the kynect 1095-A hotline at 1-844-373-2417. The hotline will be staffed with specially trained consumer service representatives.It will be open during normal call center hours.
Examples of questions kynect representatives will be able to answer
- Why did I get this Form 1095-A?
- What do I need to do with this Form 1095-A?
- What does this information on the Form 1095-A mean?
- The information on my Form 1095-A doesn’t look correct. What do I do?
- Why did I get more than one Form 1095-A?
- I did not receive a Form 1095-A, how can I get the form or the information
I need?
- How do I get another copy of my Form 1095-A?
- kynect sent Form 1095-A to my ex-spouse, can I get acopy?
- I added a dependent through my qualified health plan but that
dependent is not reflected on my Form 1095-A, what do I do?
- Where can I get a health coverage exemption (an exemption from the
individual shared responsibility provision)?
- I forgot to report a change in circumstances that occurred in coverage
year 2014, what should I do?
Examples of questions the IRS will need to answer
- Can you help me complete my income tax return?
- How do I use the Form 1095-A to fill out my Form 8962?
- I received a corrected Form 1095-A, do I need to amend my income tax
return?
- I can’t file/ can’t pay my tax liabilities by April 15th, what should I do?
- What happens if I don’t file my income tax return?
- How do I get an exemption?How much is my individual shared responsibility provision payment?
- How do I report health care coverage on my income tax return?
- I received a Form 1095A, how should I report this on my income tax
return?
- How do I claim an exemption from healthcare coverage?
- What are the requirements for the individual shared responsibility
provision?
- Do I qualify for the Premium Tax Credit (PTC)?
Other Helpful Resources from the IRS
There are several products currently available at irs.govthat may be useful:
Publication 5093: Health Care Law Online Resources
Publication 5120: Your Credit, Your Choice – Get it Now or Get it Later
Publication 5121: Need help paying for health insurance premiums?
Publication 5152: Report changes to the Marketplace as they happen
Publication 5156: The Individual Shared Responsibility Provision
Publication 5172: Health Coverage Exemptions
The IRS resource page is routinely updated as new products become available.
In addition to IRS.gov, there are several resources available:
HealthCare.gov/exemptions
freefile.irs.gov (Free File is a public-private partnership between the IRS
and commercial tax software companies that provides free federal tax
prep and e-file for taxpayers)
Health Care playlist on the irsvideos YouTube
Help Available in Spanish
Form 1095-A and its accompanying notice will not be sent to consumers in Spanish. However, consumers can go to kynect.ky.gov to find a sample notice translated into Spanish. FAQs will be translated into Spanish. Consumers can call the kynect 1095-A tax hotline at 1-844-373-2417 at no cost and speak with a customer service representative that speaks Spanish. Translators in other languages are also available.
Consumers can visit the IRS website at IRS.gov/aca or call the IRS toll free at 1-800-829-1040. Help is available in both English and Spanish. The IRS has also prepared a number of YouTube videos in English and Spanish to help consumers understand health care related changes in the tax laws.
Additional Resources
Kentuckians have access to nearly 200 free tax preparation sites across the state where trained and IRS-certified volunteers will assist tax preparation Volunteer Income Tax Assistance (VITA) sites are generally located at community and neighborhood centers, libraries, schools, shopping malls, and other convenient locations. Most locations also offer free electronic filing. For more information or to find a site, go to assistance.ky.gov. Consumers can also call Community Action Kentucky at 1-800-456-3452.