Navigating tax forms can be a complex task, but understanding Form 1095-A is crucial for those who have enrolled in a health plan through the Health Insurance Marketplace. In this blog, we’ll explore what Form 1095-A is, its significance, and how it impacts your taxes.

What is Form 1095-A?

Form 1095-A, also known as the Health Insurance Marketplace Statement, is a critical tax document for anyone who has enrolled in a health plan through the Marketplace. This form contains essential information about your health insurance policy, including the premiums paid, any advance payment of premium tax credits, and the details of the coverage for all individuals in your household under the policy.

Why Do You Need Form 1095-A?

Form 1095-A is not just a record of your health insurance coverage; it plays a pivotal role in your tax filing process. Specifically, it is used to:

  1. Reconcile Your Premium Tax Credits: The form helps you determine if the premium tax credit you used throughout the year aligns with the amount you qualify for based on your final income. This process, known as reconciliation, is essential to ensure you’re not overpaying or underpaying your taxes.
  2. File Your Federal Taxes Accurately: The information on Form 1095-A is used to fill out IRS Form 8962, which is vital for accurately reporting your health insurance information and calculating your premium tax credit on your federal tax return.

How to Access Form 1095-A

Form 1095-A is generally sent by mail from the Marketplace. However, if you haven’t received it or need a copy, you can access it online through your account. Simply log in, select your application for the relevant year, and download the form from the “Tax Forms” section.

Ensuring Accuracy on Form 1095-A

Before using Form 1095-A for your tax filing, verify its accuracy. Check if all the coverage details and household information are correct. If you find any discrepancies, contact the Marketplace Call Center to address the issue.

How Does Form 1095-A Affect Your Taxes?

Using Form 1095-A can affect the amount of taxes you owe or your refund in two ways:

  • If you used more premium tax credit than you qualify for based on your final income, you might owe the difference with your federal taxes.
  • Conversely, if you used less than you qualify for, you could receive the difference as a credit.

Form 1095-A for Agents and Clients

Agents can assist their clients by downloading Form 1095-A from their HealthSherpa agent account and ensuring the information matches the client’s coverage details. It’s important for agents to inform their clients about how completing Form 8962, which is filed along with Form 1095-A, may affect their tax liabilities.

Bottom Line

Form 1095-A is an essential document for anyone who has obtained health insurance through the Marketplace. It is integral to the tax filing process, particularly for reconciling premium tax credits. Ensuring the accuracy of this form is crucial for an accurate tax return and to avoid potential discrepancies in tax credits.