For most taxpayers, this will simply mean checking a box on a tax return indicating they had insurance for the full year. But millions of others will have to grapple with new tax forms and calculations that may generate unexpected results.
And what is to stop people from just checking the box whether they had insurance or not? Fear?
Santa will know.
This year, only the penalty of perjury and the risk that you'd have to furnish proof during an audit.
Next year, you will receive a 1095-A, -B, or -C from your insurer as the only means to prove coverage. Or you'd need an exemption, most of which are only available from the marketplace and all would require form 8965.
“And what is to stop people from just checking the box whether they had insurance or not?”
Nothing, this year. Next year, all taxpayers will need to document their coverage for all 12 months. There is a new form that will be issued to everyone with health insurance. Those without the form will be fined.