Navigating the world of health insurance and taxes can be complex. Form 1095-A, also known as the Health Insurance Marketplace Statement, is a crucial document for individuals who obtained health insurance coverage through the Health Insurance Marketplace. This article provides a comprehensive overview of what is a 1095-A form, addressing common questions and concerns to help you understand its significance for your tax obligations.
What is Form 1095-A and Why is it Important?
Form 1095-A is a tax form that provides information about your health insurance coverage obtained through the Health Insurance Marketplace (also known as the exchange). It is essential for reconciling advance payments of the premium tax credit (APTC) and claiming the premium tax credit when you file your federal income tax return.
The form includes details such as:
- Coverage period: The months you and your family members were enrolled in a health plan through the Marketplace.
- Total monthly premiums: The amount you paid for your health insurance each month.
- Advance payments of the premium tax credit (APTC): The amount of financial assistance you received each month to lower your monthly premium.
- The second lowest cost Silver plan (SLCSP) premium: This is crucial for calculating the premium tax credit.
Common Questions About Form 1095-A
Here are some frequently asked questions regarding Form 1095-A:
What If I Don’t Receive a Form 1095-A?
If you purchased health coverage through the Marketplace and haven’t received your Form 1095-A by late January, you should contact the Marketplace directly. Avoid filing your taxes until you have this form as it contains information necessary to accurately calculate any premium tax credit you may be eligible for. Note that individuals with Medicaid or CHIP coverage, or those who didn’t purchase coverage through the Marketplace, will not receive a Form 1095-A.
What If My Form 1095-A Is Incorrect?
If you believe there’s an error on your Form 1095-A, immediately contact the state or federal Marketplace where you obtained your coverage. They may need to issue a corrected Form 1095-A.
What Do I Do If I Receive a Corrected or Voided Form 1095-A?
Receiving a corrected or voided Form 1095-A necessitates a review of your tax return. You might need to amend your return depending on the changes made. Consult IRS resources or a tax professional to determine the best course of action.
Understanding the Second Lowest Cost Silver Plan (SLCSP)
The SLCSP premium, found in Part III, column B of Form 1095-A, is a key factor in determining your premium tax credit amount. The SLCSP is essential to calculating your premium tax credit, which helps make health coverage more affordable. If your family circumstances changed during the year or if you moved without notifying the Marketplace, this amount might be inaccurate. You might also see an inaccurate SLCSP premium if you did not request advance payments of the premium tax credit. In these cases, you’ll need to determine the correct SLCSP premium for the affected months using resources like IRS Publication 974, Premium Tax Credit (PTC) or the Health coverage tax tool on HealthCare.gov.
Why Did I Receive Multiple Forms 1095-A?
Multiple Forms 1095-A may arrive if household members weren’t all on the same health plan, you updated family information during the year, you switched plans, or family members were enrolled in different states.
How Do Multiple Forms 1095-A Affect My Tax Return?
When you receive multiple forms that report coverage for different months, you’ll enter the information for each corresponding month on Form 8962 (Premium Tax Credit). If you received more than one Form 1095-A reporting coverage for the same month, consult the instructions for Form 8962 PDF for detailed guidance.
IRS Requesting More Information After Filing?
You don’t need to include Form 1095-A when filing your tax return. However, you must use the information on it to complete Form 8962, Premium Tax Credit. The IRS compares the information on Form 8962 to data received from the Marketplace and other information on your return. If there’s a discrepancy, the IRS may send a letter (a “12C letter”) requesting clarification or verification, potentially including a copy of your Form 1095-A. This verification ensures the accuracy of your premium tax credit calculation.
Reasons for these letters range from incomplete Form 8962 submissions to inconsistencies between reported income and eligibility for the credit. Follow the instructions in the letter to help the IRS verify the information and process your refund.
Other Healthcare Tax Forms You May Receive
Besides Form 1095-A, you might also receive Forms 1095-B and 1095-C, which provide information about other types of health coverage. Understanding the differences between these forms is crucial for accurate tax filing.
Where to Find Additional Help
The Marketplace is a valuable resource for issues directly related to Form 1095-A. However, for specific tax-related questions, consider these resources:
- IRS Website: The IRS provides comprehensive information and guidance on tax-related topics, including the premium tax credit and Form 1095-A.
- Tax Professionals: Consulting a qualified tax professional can provide personalized advice and assistance.
- Free File: Taxpayers who qualify can file their taxes for free through IRS Free File.
- Volunteer Assistance: Free tax return preparation is available for qualifying taxpayers through volunteer assistance programs.
- Tax Preparation Software: Tax preparation software can guide you through the process and perform all necessary calculations.
Conclusion
Understanding what is a 1095-A form is essential for anyone who has health insurance coverage through the Marketplace. By carefully reviewing the information on the form and understanding its purpose, you can ensure accurate tax filing and potentially claim the premium tax credit to which you are entitled. Utilizing available resources and seeking professional help when needed will make the process smoother and more efficient.
