You Say You Have Health Insurance?

Providing proof to the IRS is the new reality Category: The Audit

New for tax year 2014 is the requirement to have health insurance. If you do not have qualified health insurance coverage AND you do not fit into one of the limited exemptions you will need to pay a fine, tax, or as the government calls it, an “individual shared responsibility” payment. So how do you prove you have the required health insurance? It is not a simple thing. Can you prove you had health insurance all twelve months? Can you prove your health insurance covered ALL your dependents? Can you prove your health insurance policy qualifies to meet the minimum coverage requirements? Can you prove you are exempt from the coverage requirement? Here are some ideas to help prove your coverage if you are ever challenged in an audit. Letter from your employer or insurance company. A letter from your employer or health insurance provider showing full year health insurance coverage, who is covered and the type of policy is ideal documentation. While neither employers nor insurance companies are required to provide this to you in 2014, it does not hurt to ask them for this confirmation. Medicare/ insurance card. Keep a copy of your insurance card or Medicare coverage card. Insurance bill. Keep copies of insurance payment summaries of medical expense reimbursement. Payments by your insurance company to medical providers can be used to show you have coverage. Other tax forms. Retain W-2s, Form 1095-As, and other forms that can provide proof of health insurance coverage. Keep a copy of payroll stubs that show your medical expense contribution.