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Tax Credits for Individuals

  1. Child Tax Credit
  2. EITC
  3. Form 5405
  4. Foreign Tax Credit
  5. IRS Publication 970
  6. Publication 972
  7. Form 1095-A
  8. ACTC
  9. Bush Tax Cuts
  10. Hope Credit
  11. Non-Refundable Tax Credit
  12. Tax Credit

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What Is Form 1095-A & How to Use It?

Updated: November 25, 2022

If you didn’t already know, you might be eligible for different types of tax credits or even subsidized insurance. But even if you did know, you might not be aware of all the different options. For example, Form 1095-A was created to provide you with additional opportunities when it comes to health insurance.

Wondering how it all works? Continue reading to learn everything you need to know. We’ll cover how to use the form, where to find it, what it includes, and more.

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    KEY TAKEAWAYS

    • You must get Form 1095-A to purchase your health insurance through the Marketplace.
    • The form is not required to be enclosed with your tax return.
    • However, you must transfer that information to Form 8962 and submit it with your tax return if you qualify for a subsidy or tax credit.

    What Is Form 1095-A?

    Form 1095-A: Health Insurance Marketplace Statement is a document provided to Americans who buy health insurance from a provider in the Health Insurance Marketplace.

    The form serves as a record of the person’s coverage; it is not required to be returned to the government. It contains details like the start date of the insurance, the monthly premium payments, and any advance payments of the premium tax credit or subsidy.

    The Affordable Care Act (ACA), sometimes known as Obamacare, was responsible for creating the form. People who obtain insurance through the Marketplace established by that law may qualify for tax credits or for subsidized insurance. At the beginning of 2019, a tax penalty for taxpayers without health insurance was eliminated.

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    How to Use Form 1095-A

    If you are qualified for the credit, you or your tax preparer will utilize Form 8962: Premium Tax Credit to complete your tax return.

    The IRS advises delaying filing your income tax return until you obtain a Form 1095-A if you anticipate receiving one. The 1095-A form is essential to the filing process since it deals with claiming or reporting tax credits, which in turn influences how much income tax you owe or whether you are entitled to a refund.

    By mid-January of the year after the coverage year, taxpayers should get a Form 1095-A via mail or on their HealthCare.gov accounts. People who don’t get their forms or see errors in them can get in touch with HealthCare.gov directly.

    The number of premiums you paid and the months for which you received coverage is listed on the form. Additionally, it includes personal data like your name, address, and Social Security number. The form also includes your policy number and the name of your insurance provider.

    How to Find Your Form 1095-A Online

    In your HealthCare.gov account, your 1095-A can be accessible as early as mid-January or as late as February 1.

    • Open your HealthCare.gov account and log in.
    • Choose your 2021 application under “Your Existing Applications,” not your 2022 application.
    • Select “Tax Forms” from the menu on the left.
    • Save every 1095-A that appears on the screen.
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    What Is Contained in Form 1095-A?

    Any Marketplace plans any member of your family had in 2021 are detailed in your 1095-A, including the following:

    • Paid premiums
    • Using premium tax credits
    • “Second lowest priced Silver plan” as a number (SLCSP)

    To complete Form 8962, Premium Tax Credit, you will need information from your 1095-A. This is how you “reconcile” — which means determining whether there is a discrepancy between the amount of the premium tax credit you utilized and what you are actually entitled to.

    Why Is Form 1095-A Needed?

    The days of coverage, the total monthly insurance premium cost, the second-lowest-cost silver plan premium you can use to calculate your premium tax credit, and the amounts of premium tax credit advance payments are all provided in Form 1095-A.

    Summary

    Americans who purchase health insurance through a Health Insurance Marketplace carrier receive Form 1095-A in the mail.

    If you signed up for a qualified health plan through the federal Health Insurance Marketplace or a state’s exchange, you will receive Form 1095-A. The exchanges use the form to communicate information about their coverage to participants in various markets.

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    FAQS on Form 1095-A

    Do I Have to Report 1095-A on My Tax Return?

    When you file your tax return and apply for the premium tax credit, you do not need to provide the IRS with a copy of your Form 1095-A.

    What Happens if I Don’t File 1095-A?

    Several things could occur: Based on the missing data, the IRS may revise your return; if they find that taxes were actually owed, they will assess penalties and interest on that sum. Your refund may be rejected if the required information is missing. Alternatively, they’ll put a hold on your refund and ask you to submit that data.

    What Is the Difference Between Form 1095-A and 1095-B?

    The Marketplace sends Form 1095-A, titled “Health Insurance Marketplace Statement,” to anyone who has signed up for health insurance through the Marketplace on their behalf or on behalf of a family member. Insurance companies and other coverage providers offer Form 1095-B, Health Coverage.

    Does Everyone Get a 1095-A Form?

    You will receive Form 1095-A if you or any member of your family signed up for a health plan through the Health Insurance Marketplace.

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