The 1095-A form: Health Insurance Marketplace Statement is a document issued by the Internal Revenue Service (IRS) and provided to individuals who purchase health insurance through a marketplace carrier in time for submitting tax returns. The 1095-A form does not need to be returned to the IRS, but it is used to report health coverage in individual tax returns.
How does the 1095-A form work?
The 1095-A form: Health Insurance Marketplace Statement is provided to taxpayers who buy health insurance through a marketplace carrier. It is used to report health coverage for the IRS.
When Congress enacted the Affordable Care Act (ACA) in 2010, health insurance was designated as a mandatory requirement for all Americans. As a result, state-based American health benefit exchanges were created to purchase subsidized health insurance plans.
The Affordable Care Act also included an individual mandate that imposed penalties on taxpayers who did not purchase insurance. The 1095-A form was introduced so that taxpayers could provide proof of coverage and claim tax credits. Congress repealed the individual mandate (starting in 2019), but marketplace providers still supply insured individuals with the 1095-A form.
Note: The 1095-A form should not be returned to the IRS with tax returns, but it should be kept for personal records after being used to file tax returns.
Who uses the 1095-A form?
The 1095-A form: Health Insurance Marketplace Statement is used by individuals who purchase health insurance through the health insurance marketplace. The form is used to report health coverage to the IRS during tax season, but the form does not need to be returned to the IRS.
How to obtain the 1095-A form?
You will receive the 1095-A form by mail from the marketplace. It is sent to all individuals who purchased insurance through the health insurance marketplace. The form should arrive before mid-February, in time to be used for tax preparation by the annual tax return due date, which is typically April 15.
What to do if you do not receive the 1095-A form?
If you do not receive the 1095 form in the mail or prefer to obtain an electronic version, you can access it online by logging into your HealthCare.gov account. Then, follow these steps:
- Select your tax year request from the “Your Current Requests” list.
- Select “Tax Forms” from the left sidebar menu.
- Download all 1095 forms.
If you used a state-based marketplace to purchase your insurance, you may be able to obtain a copy of the 1095-A form from your state marketplace account.
Note: If you had insurance through the federal marketplace and did not receive the 1095-A form by mid-February, contact the marketplace from which you received coverage or call 1-800-318-2596 (TTY: 1-855-889-4325). You cannot submit requests via email. Wait until you receive the form before submitting your tax returns.
How to read the 1095-A form?
The 1095-A form contains information about the qualified marketplace plans used by any member of your household. This information includes coverage dates, the amount of premiums paid, the tax credits used, and a number called the second-lowest-cost silver plan (SLCSP). The SLCSP refers to the health insurance plan in the marketplace with the second-lowest cost in the silver category. Even if you did not enroll in this plan, you need to know your SLCSP premium to calculate your final tax credit.
The 1095-A form is used to fill out Form 8962, Premium Tax Credit, which is submitted to the IRS with your personal tax return. Form 8962 reconciles the difference between the premium tax credit you used and the amount you are entitled to.
Do not
Need to File Form 1095-A
Although Form 1095-A is used to complete Form 8962, it does not need to be submitted to the Internal Revenue Service (by mail or otherwise). You should keep the form for your personal records.
Frequently Asked Questions (FAQs)
What is Form 1095-C?
Form 1095-C is similar to Form 1095-A, but it is used for health insurance provided by an employer. Form 1095-C will detail the coverage you received through your employer (as long as you were employed for at least one month).
How does Form 1095-A affect my taxes?
Form 1095-A does not directly affect your taxes, but it is used to fill out Form 8962. Form 8962 is related to premium tax credits. If you did not use advance premium tax credits, Form 8962 will reduce your taxable income on your returns. If you did use advance premium tax credits, Form 8962 will reconcile any differences between the estimated tax credits you received throughout the year and the actual tax credit you are entitled to.
Source: https://www.thebalancemoney.com/what-is-form-1095-a-health-insurance-marketplace-statement-5206269
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