Understanding Form 1095-A and How It Works
When you purchase health insurance through a health insurance marketplace carrier, you will receive a Form 1095-A: Health Insurance Marketplace Statement from the marketplace. This form contains important information such as dates of coverage, premiums paid, premium tax credits used, and the Second Lowest Cost Silver Plan (SLCSP) figure. If you have not received your Form 1095-A by mid-February, be sure to reach out to the marketplace where you purchased your health insurance.
Form 1095-A is not filed with the IRS, but it is crucial for filling out Form 8962, Premium Tax Credit, which must be submitted to the IRS along with your tax return.
How Form 1095-A Plays a Role
Form 1095-A is provided to taxpayers who bought health insurance through a health insurance marketplace carrier. This form is essential for reporting health insurance coverage to the IRS. With the passage of the Affordable Care Act in 2010, health insurance coverage was made mandatory for all Americans. State-based American Health Benefit Exchanges were established to allow Americans to purchase subsidized health insurance plans. Although the individual mandate was repealed in 2019, marketplace providers still issue Form 1095-A to insured individuals to provide proof of coverage and claim tax credits.
Remember that Form 1095-A should be kept for personal records after it's used for tax filing purposes, but it should not be sent to the IRS with your tax return.
Who Needs Form 1095-A?
Individuals who purchase health insurance through a health insurance marketplace utilize Form 1095-A to report their coverage to the IRS during tax season. However, the form is not to be sent back to the IRS.
Obtaining Your Form 1095-A
Your Form 1095-A will be sent to you via mail from the marketplace where you purchased your insurance. It should arrive by mid-February, in time for tax filing season which generally ends on April 15. If you haven't received your form, you can access it online by logging into your HealthCare.gov account and following the instructions provided.
Reading Form 1095-A
Form 1095-A includes details about qualified marketplace plans used by members of your household, such as coverage dates, premium amounts, premium tax credits, and the Second Lowest Cost Silver Plan (SLCSP). This figure is crucial for determining your final premium tax credit. Form 1095-A assists in filling out Form 8962, which reconciles the premium tax credit you used with the amount you qualify for.
