Navigating health insurance can be complex, especially during tax season when additional forms like the 1095-A come into play. If you’ve purchased your health insurance through the Healthcare.gov Marketplace, you’re likely familiar with this form. But what exactly is the 1095-A, and why is it so important? In this guide, we’ll break down everything you need to know about the 1095-A form, how it affects your taxes, and answer some common questions to help make this process as easy as possible.
What is Form 1095-A?
Form 1095-A, also known as the Health Insurance Marketplace Statement, is a tax document sent to people who bought health insurance through the Marketplace at Healthcare.gov. This form provides detailed information about your Marketplace health insurance coverage, including:
- The months you were covered
- The premiums you paid for your plan
- Any advance payments of the Premium Tax Credit (PTC) that were made to your insurer on your behalf
- Information on your dependents if they were covered by the plan
The IRS requires this form because it helps determine whether you’re eligible for the Premium Tax Credit, a subsidy that lowers your monthly health insurance premium based on your income.
Why is Form 1095-A Important?
Form 1095-A is critical for filing your taxes accurately if you received any subsidies for your health insurance. The information on this form allows you to:
- Reconcile Your Premium Tax Credit: If you received an advance payment of the Premium Tax Credit (APTC), the IRS needs to know if you received the correct amount based on your income. Form 1095-A allows you to reconcile, which could mean receiving a credit or owing additional taxes, depending on any difference between estimated and actual income.
- Claim a Premium Tax Credit: Even if you didn’t receive any advance subsidies, you might still be eligible for the Premium Tax Credit. By filing the 1095-A information, you can claim this credit when you file your taxes.
Neglecting to include Form 1095-A can lead to delays or issues with your tax return, so it’s essential to use it when filing.
Breakdown of Form 1095-A Sections
Form 1095-A is divided into three main sections, each with unique information:
- Part I: Coverage Information
- This section includes details about the policyholder and the specific coverage plan. Information such as the Marketplace-assigned policy number, the start and end dates of the coverage, and the issuer are found here.
- Part II: Covered Individuals
- Here, you’ll find information about everyone covered under the plan, including the names and Social Security numbers of dependents who received coverage.
- Part III: Coverage Months and Premiums
- Part III breaks down the premiums paid each month, including the amount of advance payments of the Premium Tax Credit (APTC). This part is vital for reconciling the credit when filing your taxes.
How to Use Form 1095-A for Filing Taxes
If you received subsidies, you must complete Form 8962 (Premium Tax Credit) when filing your taxes. This form helps you reconcile the APTC, using information from your 1095-A. Let’s go through the key steps:
- Find Your 1095-A: Log in to your Healthcare.gov account, and go to your tax forms. You can download your 1095-A here if you haven’t received a mailed copy.
- Fill Out Form 8962: On Form 8962, you’ll need to enter the information from Part III of your 1095-A. This includes monthly premium amounts, the second-lowest-cost Silver plan premium, and APTC payments.
- Reconcile Your Credit: Based on the information provided, you’ll see whether you received too much or too little in APTC. This amount will affect your overall tax liability or refund.
- File with Your Taxes: Attach both Form 1095-A and Form 8962 to your tax return if you’re filing by paper. If filing electronically, ensure the software includes this information.
Common Issues with Form 1095-A
1. Missing or Incorrect Information
If there are errors on your 1095-A (such as incorrect coverage months or premium amounts), contact Healthcare.gov immediately to request a corrected form. Using incorrect information can lead to inaccurate tax filings.
2. Lost Form
If you lose your 1095-A, don’t panic. Log into your Healthcare.gov account and navigate to your “Tax Forms” section, where you can download a new copy.
3. No Form 1095-A Received
If you don’t receive a 1095-A but you had Marketplace coverage, contact Healthcare.gov for assistance. This may happen if there was an address error or if your form was delayed.
Frequently Asked Questions (FAQs)
Q1: Who receives Form 1095-A?
Anyone who enrolled in a health insurance plan through the Health Insurance Marketplace (Healthcare.gov) will receive a 1095-A if they had coverage for any part of the year.
Q2: What if I had other forms, like a 1095-B or 1095-C?
Forms 1095-B and 1095-C are different from 1095-A. The 1095-B shows coverage from non-Marketplace sources (like Medicaid), while 1095-C is for employer-sponsored plans. Only the 1095-A includes information necessary for the Premium Tax Credit.
Q3: Is it possible to receive more than one 1095-A?
Yes, you may receive multiple 1095-A forms if you changed plans mid-year or if different members of your household had separate Marketplace policies.
Q4: Do I need to attach the 1095-A form to my tax return?
You don’t attach the form itself but use it to complete Form 8962, which reconciles the Premium Tax Credit. Ensure the information is accurate to avoid any issues with your tax return.
Q5: What happens if I don’t file my taxes with 1095-A information?
The IRS requires reconciliation of any APTC. If you don’t file using 1095-A information, you may face delays, penalties, or even lose eligibility for future subsidies.
Q6: How can I request a corrected 1095-A if there’s an error?
Contact Healthcare.gov directly to report any issues with your form. They can issue a corrected version, which will help ensure accurate filing.
Q7: Can I claim the Premium Tax Credit without receiving advance payments?
Yes! Even if you paid your premiums without subsidies, you can still claim the Premium Tax Credit when filing taxes if your income meets the eligibility criteria.
Q8: What if I overestimated my income and received too much in subsidies?
If your income is lower than estimated and you received excess subsidies, the reconciliation process on Form 8962 will require you to pay back part or all of the excess.
Conclusion
The 1095-A form from Healthcare.gov is an essential part of tax filing for anyone who purchased health insurance through the Marketplace. It provides key information for the Premium Tax Credit, which can significantly reduce your tax liability. By understanding the information on Form 1095-A, completing Form 8962 accurately, and knowing how to handle common issues, you can make tax season much smoother and avoid potential issues with the IRS.
