The 1095-A tax form is used to report information about an individual’s marketplace coverage.
This information is used to determine the individual’s or couple’s eligibility for a premium tax credit through the federal government or other subsidies. The 1095-A healthcare form is also used to reconcile any advance payments of the premium tax credit that were made during the year.
Below is an example of the form 1095-A:
1095-As have the pertinent information taxpayers need to report as it relates to the government subsidy funds paid as a form of financial aid.
How Does the 1095-a Health Insurance Marketplace Tax Form Affect Taxes?
The 1095-A form is also used to reconcile any advance payments through Form 8962.
The financial support in the form of advanced payments is based on household income. If advanced payments were greater than the subsidies a household was eligible for, the individual (or couple if married filling joint) would need to repay the excess subsidy when filing their taxes.
If advanced payments were less than the subsidies a household was eligible for, the return filed would receive a refundable tax credit.
Basically, people who underreported their income will end up with fewer premium tax credits, and people who overreport income will end up with an additional tax refund.
What is a Premium Tax Credit?
A refundable credit that helps eligible individuals and families cover the cost of premiums for qualified health insurance plans, including Marketplace plans, by lowering the monthly premium.
Contact a licensed agent in determining whether as an individual or family, you are eligible for a premium tax credit, and if so, how much of a credit they are eligible for, is based on the household income and the number of people in the household.
Do I Claim the Premium Tax Credit on My Taxes?
To claim the premium tax credit, you must file a federal income tax return most commonly a Form 1040, for the tax year you had coverage.
You’ll need to complete and attach Form 8962, Premium Tax Credit, to your return.
An example of this form is listed below:
Tax professionals familiar with these public subsidies, like CPAs and enrolled agents, can help ensure you get the credit you qualify for.
Do You Need to File a 1095-a Tax Form With Your Federal Income Tax Return This Year?
If you purchased health insurance through the Health Insurance Marketplace, you should receive a 1095-A tax form.
If you didn’t receive a 1095-A form, you can still file your taxes without it.
However, if you are eligible for the premium tax credit or other subsidies, you will need to reconcile any advance payments.
What Happens if You Don’t File a 1095-A Tax Form When You’re Supposed to?
If you fail to file a 1095-A tax form when you’re supposed to, you may be subject to penalties.
The IRS may assess a late-filing penalty of $50 for each return for which a Form 1095-A is required but not filed, with a maximum penalty of $250,000 per year ($500,000 for corporations).
You may also be subject to interest charges.
Where Can You Find More Information About the 1095-a Tax Form and How to Fill It Out Correctly?
For more information about the 1095-A tax form and how to fill it out correctly, you can visit the IRS website or speak to a tax professional.
Licensed agents through Marketplace America are also able to provide copies of 1095-As.
If you need help understanding the 1095-A tax form or how it affects your taxes, contact a tax professional or the Health Insurance Marketplace. They can help you determine if you need to file and can provide you with the necessary forms.
If You Lost Your 1095-A How Can You Get Another?
Lose your 1095-A?
Contact your insurance company or the Health Insurance Marketplace to request a new copy.
You can also get a copy of your 1095-A from the IRS by requesting a transcript of your tax return.
Marketplace America has access to these resources on behalf of the client and can obtain 1095-As with a signed request.
How Long Do You Need to Keep Your 1095-a?
You should keep your 1095-A for your records.
You will need it to reconcile any advance payments of the premium tax credit that were made during the year. The 1095-A may also be helpful if you have questions about your health insurance coverage or taxes in the future.
What Should You Do if There Are Errors on Your 1095-a Tax Form?”
If you notice any errors on your 1095-A tax form, contact your insurance company or the Marketplace where you purchased your health insurance.
They will be able to provide you with a corrected form. Once you have the corrected form, you can file it with your taxes.
If you have any other questions about the 1095-A healthcare tax form, you can speak to a tax professional or visit the IRS website for more information.
FAQ: Answering Your Tax Form Questions
What Tax Years Could I Have the Premium Tax Credit?
Any tax returns for tax years 2014 and beyond could have applied a premium tax credit if the taxpayer was covered under the marketplace.
If I'm Married but File Taxes Separately Can I Still Qualify for the Premium Tax Credit?
If you’re married but file taxes separately, you can potentially still qualify for the premium tax credit. You do need to meet the other eligibility requirements. However, your income must be below a certain level in order to qualify.
Do I Get the Premium Tax Credit if I Have a Job That Offers Health Insurance?
The answer to this depends on many factors, including whether your employer’s plan is considered affordable but most people with employer-sponsored health coverage do not qualify.
Can I Still Get the Premium Tax Credit if My Income Changes During the Year?
If your income changes during the year, you may still be eligible for the premium tax credit. However, your final credit amount will be based on your updated income information.
What if I Didn't Have Health Insurance for Part of the Year?
If there is a gap in someone’s health insurance for part of the year, they may still be eligible for the premium tax credit. However, there may also be a fee for the months that they were uninsured.
What's the Difference Between a 1095-A, 1095-B, and a 1095-C?
A 1095-A is used to report information about health insurance coverage obtained through the Health Insurance Marketplace. A 1095-B is provided by a health insurer and is used to provide info about coverage. A 1095-C is used to report health insurance coverage offered by an employer. Only a 1095-A is used for the premium tax credit.