September 21, 2015
Tax filing reminder for on-exchange Individual and Family plan
members
If your clients enrolled in Kaiser Permanente for Individuals and Families (KPIF) received federal
financial assistance to pay for health coverage in 2014, they are required to file a 2014 federal income
tax return in 2015. The Marketplaces use federal tax returns to verify income and determine eligibility
for federal financial assistance. We’re in the process of mailing letters to all Kaiser Permanente
Individual and Family Plan members who purchased coverage through the Marketplace in Maryland,
the District of Columbia, or Virginia, reminding them to file their tax returns. The IRS sent out Letter
5591 communicating this in July, and some Marketplaces are also sending notices.
The Marketplaces are as soon as early to mid-September for the FFM in Virginia. If individuals’ tax
filings are not in order, they may be renewed without any federal financial assistance. Kaiser
Permanente doesn't have access to IRS information so we don’t know who filed and who did not file,
but we estimate that 40-60% of our members receiving subsidies may not have filed their 2014 taxes
yet.
Members must file the 1040 form. The 1040EZ form will not work. In addition, those who received
federal financial assistance in 2014 must file IRS Form 8962.
The renewal kits members will be receiving in September and October will not address this issue.
Their renewal letter will tell them how much federal financial assistance they may be eligible for based
on 2015, but it does not say anything about the need to file their tax return.
Please refer to the following questions and answers that will help you assist your clients.
Q&As
Q1: Why did my clients get this letter?
A1: Kaiser Permanente wants to make sure eligible KPIF members don’t lose the federal financial. We
don’t have access to IRS information and we don’t know which members filed their taxes, so we are
notifying everyone with an on-exchange plan.
Q2: My clients already filed their taxes. Why did they receive this letter?
A2: Because we don’t know which members completed their 2014 federal income tax filing, we are
sending the letter to all KPIF members to make sure your clients who have not already filed their taxes
will still be eligible for federal financial assistance in 2016. If they haven’t filed their 2014 taxes, they
need to file them right away. If they have already filed their 1040 (not 1040EZ) form and IRS Form
8962, then they can disregard the letter and there’s nothing more they need to do. If your clients are
not sure whether their tax filing is complete, they can contact their Marketplace to make sure they
have everything they need to process their federal financial assistance.
Q3: My clients filed a 1040EZ form. Will that work?
A3: No. Your clients must file a full 1040 tax return, along with Form 8962, to keep their federal
financial assistance in 2016.
Q4: My clients didn’t file their tax returns yet. What do they have to do?
A4: If they haven’t filed already, your clients should file their 2014 1040 (not 1040EZ) form with Form
8962 as soon as possible, even if they don’t usually have to file. For more information on filing the
Form 8962, they can contact their tax preparer or visit irs.gov/aca. Please note that it can take
several weeks for the IRS to process a return.
Also, to ensure your clients are receiving the correct amount of federal financial assistance and to
avoid any surprises at tax time, they need to report any changes to their total expected household
income and the number of people in their household to their Marketplace.
MD only: To keep their subsidies in 2016, your clients must also give Maryland Health Connection
permission to review their 2015 income information, by visiting marylandhealthconnection.gov or
calling 1-855-642-8572.
VA only: Notify the Marketplace
Once your client files a 2014 1040 form along with Form 8962, they should log into their account at
healthcare.gov and check the box telling the Marketplace they have filed their taxes. This will allow
the Marketplace to renew their coverage with federal financial assistance.
Q5: My clients filed for an extension. What do they have to do?
A5: Even if your clients filed for an extension, they must file right away. The tax filing extension
deadline is October 15, 2015, and that is too late to qualify for federal financial assistance for 2016.
Their Marketplace must have your clients’ income information furnished by the IRS to verify their
eligibility for federal financial assistance in 2016,. If your clients have any questions, they can contact
the IRS or their Marketplace (contact information below).
Q6: My clients receiving federal financial assistance don’t usually file a tax return because they
don’t make enough money.
A6: Even if they don’t normally file a tax return, the Marketplace uses the tax return to verify income
and determine eligibility for federal financial assistance. Your clients must file their 2014 1040 tax
return, not a 1040 EZ form, along with Form 8962, to keep their subsidies in 2016.
Q7: My clients didn’t receive federal financial assistance in 2014 but they do now.
A7: Your clients don’t need to do anything now to continue receiving their subsidy in 2016. If they are
receiving federal financial assistance in 2015 they will need to file a 2015 tax return with IRS Form
8962 to receive subsidies in 2017.
Contact Information
Jurisdiction Marketplace
District of
DC Health Link
Columbia
Maryland
Maryland Health Connection
Virginia
The Health Insurance
Marketplace
IRS contact
Healthcare.gov/taxes
info
Website
dchealthlink.com
Phone Number
1-855-532-5465
marylandhealthconnection.gov
healthcare.gov
1-855-642-8572
1-800-318-2596
IRS.gov
Contact your local
office
Although we have attempted to present accurate information, Kaiser Permanente disclaims any express or implied warranty as
to the accuracy of any material contained herein and any liability with respect to it, and any responsibility to update this material
for subsequent developments. As required by the IRS, we inform you that any tax advice contained in this communication (or in
any attachment) was not intended or written to be used or referred to, and cannot be used or referred to, (i) for the purpose of
avoiding penalties under the Internal Revenue Code, or (ii) in promoting, marketing, or recommending to another party any
transaction or matter addressed herein (or in any attachment). Users should consult with their own attorney or tax professional
before making tax-related decisions.
Kaiser Foundation Health Plan of the Mid-Atlantic States, Inc.
2101 East Jefferson St., Rockville, MD 20852