ToddL99
Expert Alumni

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Yes, you are still required to answer the questions about health insurance as part of preparing your tax return. There is no longer a penalty for not have minimum essential coverage,  but there are other tax-related reasons for the information on your health coverage.

 

"Individuals who have health insurance should receive one of three tax forms for the 2020 tax year: the Form 1095-A, Form 1095-C or Form 1095-B. The forms are sent to individuals who are insured through marketplaces, employers or the government. You do not need to wait for the forms to file your taxes, and they do not have to be attached to your tax return.

 

However, the forms are important. They provide information required for your tax return such as the total amount of premiums paid and the time frame you were covered. You can use this information if you plan to deduct health care expenses, and you'll also want to keep the documents for your records.

 

During the first years of the Affordable Care Act (ACA), 1095 forms were more important as they would allow the IRS to verify health insurance coverage. If the IRS identified gaps in health coverage, then you would be required to pay the tax penalty for not having minimum essential coverage.

 

In 2020, the tax penalty for lacking coverage is no longer in effect. But, as mentioned above, the forms are still useful for filing tax returns and claiming tax deductions."

 

For additional information, see:  How Do I Prove I Have Health Insurance For My Taxes?