I have been looking at the health insurance individual mandate for investor/traders(not considered self employed) for filing a 1040 form for 2014. It appears that if you just check the box that you maintained health coverage for the year and that is it. In my case, I purchased health insurance directly from an insurance company without going through the marketplace so the check box would apply to me. However, if this is the case, how does the IRS verify that I really had insurance unless they audit me? I don't see anywhere that I am required to provide any additional proof. Also, since I may not itemize deductions this year, will this raise a red flag as far as the IRS goes since I am not trying to deduct health care expenses?
You're right. They can't verify it without an audit. It's been in the news lately that your chances of being audited are the lowest in a decade so I wouldn't worry about it.
You don't sound like you are planning to lie to the IRS. But I feel obligated to write because others might see the reply to your question. Don't lie to the IRS in a case like this (a circumstance in which they can prove you were lying). They call that fraud. If you are lucky, maybe they just attach your bank account, but they may also send you to a nice "government hotel"
Right, simple check the box. The IRS wanted 1095s for reporting everything but people balked and they made that voluntary. See our 10/30/14 blog on Obamacare taxes.