As the end of the year approaches, and at a faster pace than many of us want, in no time we must consider filling out our tax return. If you have your taxes done by a professional, that individual will know how to fill out the health insurance coverage portion correctly on your tax form. However, if you do your own taxes, recording TRICARE coverage can be a little tricky.
Types of acceptable TRICARE coverage
Due to the many different TRICARE options, it is first necessary to know which options are recognized as meeting the guidelines for having acceptable coverage:
- Prime
- Standard
- Tricare for Life
- Overseas
- Remote
- Uniformed Services Family Health Plan
- Tricare Young Adult
- Tricare Reserve Select
- Tricare Retired Reserve
- VA Healthcare
- Civilian Health and Medical Program of the VA (CHAMPVA).
Claiming Coverage
If everyone you are claiming on your tax forms as dependents were covered under one of these insurance plans for the entire tax year, then you can claim health coverage on your tax forms by just checking the box. Where it becomes more complex is if a family member you are claiming did not have health insurance for the full tax year.
If so, then legally you can’t claim they had coverage for the full tax year. In cases with less than a full year of health insurance coverage, contact the IRS or enlist the help of a tax professional for advice on how to file this portion of your tax return correctly.
Checking the boxes
Depending on your situation, individuals and/or heads of households will use one of three forms:
- Form 1040EZ
- Form 1040A
- Form 1040
Form 1040EZ
If you and your spouse (if applicable or filing a joint return) had health insurance coverage meeting the requirement for the whole year, just check the box on Line 11 and you’re done with that portion of your tax form.
Form 1040A
Individuals filing one of the following statuses for tax purposes: single, married filing jointly or separately, qualifying widow or widower, or head of household – may be eligible to use this form depending on other form requirements, such as the amount of taxable or combined incomes, if claiming capital gains or itemizing deductions. The box on this form is more difficult to find, but it is on Page 2 Line 38.
Form 1040
If you do not meet the requirements of the other two 1040 forms, then most likely you’ll use the “long form” 1040. The box on this form is also located on Page 2, but on Line 61.
Recording TRICARE coverage correctly is something you want to get right to keep from getting penalized for not having health coverage under the Affordable Health Care Act. Most forms of TRICARE meet the health insurance coverage criteria even though they were not purchased through the Health Insurance Marketplace. If not sure that your coverage meets the “essential health insurance” requirement or not, contact either the IRS or seek advice from a professional tax preparer.
