As taxpayers prepare for their 2014 returns, tax professionals are hearing one question above all others: How will my health insurance and the Affordable Care Act affect my taxes?

Last year was the first year that the ACA's individual health insurance mandate, and subsidies to help pay for insurance, took effect."There really is a mix in how it's going to affect taxes. Some people are concerned about penalties (for not having health insurance). Others are worried about reconciling any advance credit they may have received," and owing extra money on their tax returns, said Karen Gillette, a local tax advisor with H&R Block.Will I be penalized?Individuals and families who did not have health insurance in 2014 will pay a penalty of 1 percent of their annual household income or $47 per child and $95 per adult (up to $285 per household), whichever is greater.This penalty will be deducted from any tax refunds you are owed, or added to your federal tax payment due."There are many exceptions to these penalties that we're trying to help clients with," added Gillette.For example, people who are uninsured for less than three months of the year will not have to pay a penalty. Nor will people who cannot find affordable coverage, which is defined as coverage that costs less than 8 percent of household income, or if your income is too low to file taxes.Members of a federally recognized tribe, health care sharing ministries, and religious sects with religious objections to insurance will also not be penalized. You also can't be penalized if you are incarcerated or not legally living in the United States.Do I owemoney back?If you received a subsidy to help pay for your 2014 health insurance premiums, you may be required to pay back some of this money if you did not accurately estimate your income for this past year."When people applied for insurance (in late 2013), they estimated what their income would be for 2014. Now that they're filing their taxes, we know exactly what their income is," said Gillette."Obviously, people are concerned if they're going to have to pay any of the credit back."She noted that only those people who earned more than they expected to earn in the past year will likely have to pay back a portion of their subsidy.To prevent this from happening next year, Gillette encouraged taxpayers receiving insurance subsidies to keep an eye on their income throughout the year, especially if there are substantial changes such as a pay raise or increasing their work hours."If their situation changes, they need to contact the marketplace and let them know," she added.Do I need insurance for 2015?The individual requirement for health insurance remains in place this year, which means that all taxpayers must have adequate health insurance or face a penalty.This insurance can be purchased on the open market, or received through the workplace or medical assistance."It is beneficial to have some type of trusted advisor," said Lori Tucker, the owner of Lori Tucker Agency in Danielsville and a licensed insurance agent."Things are ever-changing, and everyone's situation is different."She noted that it's important to stick to government or insurance agency websites while shopping for a policy online.Pennsylvania residents can purchase health insurance at

www.healthcare.gov, through an insurance broker, or by going directly to an insurance company's website."I did have two people that signed up for a scam while trying to purchase insurance. They thought they were on the government website," said Tucker."If you go through a website, be very careful what information you're sharing and who you're sharing it with."