What is Form 1095-A?
Form 1095-A is a health insurance marketplace statement that you will receive if you bought health insurance through the Health Care Exchanges. This form is sent to you by the Marketplace and provides essential information about your health coverage.
Key details included on this form are:
-
The amount of coverage you had
-
The premiums you paid
-
Any advance payments of the premium tax credit (APTC)
-
The names of all household members covered under the plan
This information is vital for accurately completing your tax return and ensuring you receive the correct amount of premium tax credit.
Role of the Health Insurance Marketplace
The Health Insurance Marketplace was established under the Affordable Care Act (ACA or Obamacare) to provide individuals and families with access to affordable health insurance. Only those who purchase coverage through this Marketplace are eligible for the premium tax credit, which helps lower the cost of your health insurance premiums.
Information Included on Form 1095-A
Form 1095-A contains several pieces of critical information:
-
A list of all household members enrolled in the Marketplace plan
-
The plan premium for each month
-
Any advance payments of the premium tax credit (APTC) made on your behalf
If you haven’t received your Form 1095-A by mail, you can find it in your Marketplace account online.
Using Form 1095-A for Tax Filing
To complete your tax return, you’ll need to use the information from Form 1095-A to fill out IRS Form 8962, Premium Tax Credit. Here’s how it works:
-
You’ll reconcile the premium tax credit used during the year with the amount you actually qualified for based on your income.
-
If there’s a difference between these two amounts, you might be eligible for a refund or might need to repay excess credit.
This reconciliation process ensures that you’re receiving the correct amount of tax credit based on your actual income versus your estimated income.
Reconciling Premium Tax Credits
Reconciling your premium tax credit using Form 8962 is crucial. Here are some scenarios to consider:
-
If your actual income was lower than estimated, you might be eligible for additional credit.
-
If your actual income was higher than estimated, you might need to repay some or all of the excess credit received.
Accurate reconciliation helps avoid any surprises when filing your taxes and ensures compliance with IRS regulations.
Filing Requirements and Deadlines
Even if you don’t normally file a federal tax return, it’s necessary to do so if you received advance payments of the premium tax credit. Here are some key points:
-
Make sure to file your federal tax return by the designated deadline.
-
Ensure you have an accurate Form 1095-A before filing your taxes to avoid any delays or issues.
Troubleshooting and Corrections
If there are errors on your Form 1095-A, here’s what you can do:
-
Carefully review the form for accuracy.
-
If there are discrepancies, contact the Marketplace Call Center for assistance in correcting them.
