What is the Affordable Care Act, and how does it affect me?

The Patient Protection and Affordable Care Act (ACA) is a federal law signed by the President in 2010. The law expands access to health insurance and creates a requirement to maintain coverage. Beginning in 2015, taxpayers will be responsible for the following during tax time:

  • Reporting health coverage, or lack of coverage, for all members of the household
  • Applying for or claiming exemptions from coverage requirements if uninsured and eligible for such exemptions
  • Calculating the Individual Shared Responsibility Payment (often referred to as a penalty) if uninsured and ineligible for exemptions
  • Reconciling Advance Premium Tax Credits (APTC)
  • Claiming Premium Tax Credits (PTC) not claimed in advance

When having your taxes prepared, you may need to bring additional documentation to aid in the preparation of your return. If you are uninsured, you may need to pay a penalty if you are not eligible for an exemption. VITA assists taxpayers with all tax time responsibilities related to the Affordable Care Act at no cost.