What is Form 1095-A: Health Insurance Marketplace Statement?
Form 1095-A is issued to individuals who obtain their health insurance coverage through a Health Insurance Marketplace carrier. This form serves as an important record of one’s insurance coverage and includes crucial details such as the policy’s effective date, monthly premium amounts, and any advance payments of the premium tax credit or subsidy. This form originates from the Affordable Care Act (ACA), also known as Obamacare, and helps determine eligibility for subsidized coverage or a tax credit.
Key Takeaways
- If you purchase health insurance via the Marketplace, you will receive Form 1095-A.
- The form does not need to be submitted with your tax return, but its information is vital if you’re claiming a premium tax credit.
- For those eligible for subsidies or tax credits, details from Form 1095-A should be transferred to Form 8962 and included with your tax return.
Who Receives Form 1095-A: Health Insurance Marketplace Statement?
Form 1095-A is issued to anyone enrolled in a qualified health plan through either the federal Health Insurance Marketplace or any state exchanges. While you do not need to submit the form itself with your tax return, acknowledging the information from it on your federal tax return is necessary. If eligible for a premium tax credit, you will also simplify the tax filing process by attaching Form 8962: Premium Tax Credit.
The American Rescue Plan of 2021 has expanded tax credit eligibility to all taxpayers who secure insurance through an ACA Marketplace, irrespective of their income relative to the federal poverty line. Despite the removal of penalties for not having health coverage, maintaining accurate records of Form 1095-A is essential.
Filing Form 1095-A: Steps and Considerations
When preparing your tax return, use information from Form 1095-A to complete Form 8962 if applicable. According to the IRS, you should wait until you receive Form 1095-A before filing your tax return as it impacts the calculation and reporting of tax credits, subsequently affecting your owed tax or refund.
Form 1095-A, issued by mid-January following the coverage year, can be received either by mail or accessed through your HealthCare.gov account. It encompasses key details such as the months of coverage, paid premiums, policy number, and your insurance provider’s name.
Detailed Overview: Form 1095-A
This form is mailed to individuals with health insurance coverage via a Marketplace carrier and provides an outline of coverage details, premium payments, and any advance premium tax credits received.
Importance and Use of Form 1095-A
While you don’t need to submit Form 1095-A as part of your tax return, if you qualify for a subsidy or tax credit, the information on this form should be transferred to Form 8962 for an accurate and complete tax filing.
Timeline for Receiving Form 1095-A
Expect to receive the form by mid-January of the subsequent year either through mail or your HealthCare.gov account. Contact HealthCare.gov for duplicates or corrections if the form is not received or has errors.
Conclusion
Form 1095-A is vital for those purchasing health insurance through a Marketplace. It holds critical details about your insurance coverage required for tax returns. Remember to transfer pertinent information to Form 8962 for claiming eligible subsidies or tax credits.
Related Terms: Affordable Care Act, Health Insurance Marketplace, Premium Tax Credit, Form 8962.
References
- Internal Revenue Service. “Health Insurance Marketplace Statements”.
- HealthCare.gov. “No Health Insurance? See if You’ll Owe a Fee”.
- Internal Revenue Service. “The Health Insurance Marketplace”.
- U.S. Congress. “H.R.1319 - American Rescue Plan of 2021”.
- Internal Revenue Service. “Eligibility for the Premium Tax Credit”.
- Internal Revenue Service. “Corrected, Incorrect or Voided Forms 1095-A”.
- Internal Revenue Service. “Form 1095-A”.
