When you purchase health insurance from any of the insurers on the ACA Health Insurance Marketplace, you’ll need a 1095-A form when you file your taxes. The 1095-A form, also known as a Health Insurance Marketplace Statement, is a document provided to Americans by the IRS.
If you are eligible for a premium tax credit subsidy on your ACA health insurance, you’ll need to be aware of the 1095-A form. But exactly where, when, and how do you get this important document? In this short guide, we explain how to get a 1095-A tax form online.
What Is A 1095-A Tax Form?
There are several forms used to report health insurance coverage to the IRS. Some of these are for use by employers (1095-C), or the insurance carriers (1095-B) themselves. The 1095-A form is for the policyholder’s use, and it’s accessible online.
You will need the 1095-A form to prepare your tax return if you purchase health insurance through the ACA’s Health Insurance Marketplace. This applies whether you paid full price for coverage, or received an ACA premium subsidy and wish to claim it on your tax return.
Why You Need A 1095-A Form
Under Code Section 36B(a), eligible taxpayers may receive a refundable premium tax credit to help with the costs of health insurance purchased through the Health Insurance Marketplace. This premium tax credit is the lesser of either of the following amounts:
- The total premiums paid for the health insurance plan or plans in which the taxpayer or any of their family members are enrolled.
- The difference between the premiums for the second-lowest-cost Silver-tier health plan available under the Affordable Care Act (ACA) that covers the taxpayer and their family, and the amount the taxpayer is expected to contribute. You can find the information on Form 1095-A, where the premium amount for the second-lowest-cost Silver health plan in the taxpayer’s area is listed.
The Health Insurance Marketplace Statement, form 1095-A, is used to report information to the IRS about your health insurance coverage. It allows you to reconcile the premium tax credit you are entitled to with advance payments of the credit, and report any difference between those amounts on your tax return.
You will use form 1095-A to complete form 8962, the Premium Tax Credit form, to claim this credit on your tax return. Sometimes, the IRS requests taxpayers’ copies of form 1095-A. This happens when they need you to verify the information you entered on your income tax return.
Who Gets The 1095-A Form?
If you purchased health insurance through the ACA Marketplace, you get the 1095-a form. While you are not required by law to return this form to the IRS, you’ll need it as a record of your health coverage contributions.
Do not file a form 1095-A for a catastrophic health plan or a stand-alone dental plan, as these are not eligible for claiming back premium subsidies.
If you have more than one eligible health plan, you will receive more than one 1095-a form. If two or more tax filers in your household are enrolled in one policy, you will each receive a 1095-a for reporting coverage in your family.
When To Expect The 1095-A Form
You will receive your form 1095-A through the mail from the marketplace. It is sent to all individuals who purchase insurance through the health insurance marketplace. The form usually arrives by mid-February, in time to file your taxes by the annual tax-filing deadline, which is April 15.
How Do I Find My 1095-A Form Online?
When you sign up for health insurance through the ACA Marketplace on healthcare.gov, you must create an account. This is simple and quick to do. From here, you will be notified of all things pertinent to your health insurance status.
- Log in to your account: If you already have an account on the Marketplace website, log in using your username and password. If you don’t have an account, you’ll need to create one. Follow the instructions on the website to set up your account.
- Navigate to the appropriate section: Once logged in, navigate to the section related to tax forms or tax documents. This section may be labeled differently depending on the website’s layout, but look for options related to tax information or tax forms.
- Locate and download Form 1095-A: Within the tax forms section, you should find an option to download Form 1095-A. It may be listed along with other tax documents or forms related to your health insurance coverage.
- Verify and review the information: After downloading Form 1095-A, carefully review the information provided on the form. Ensure that all details regarding your health insurance coverage and premium payments are accurate.
- Print or save the form: Once you’ve verified the information, you can choose to either print the form for your records or save it electronically to your computer or device.
How Do I Use My 1095-A Form?
Most of the form’s requirements are pretty straightforward, including personal identification information, and details of the policy itself. However, there are some important things to note, to ensure that there are no errors.
- Lines 16 through 20 and columns A through E on form 1095-a are specifically for information on each individual covered under the health insurance policy.
- If any advance premium tax credit payments were made for the coverage, enter this in Part I. This information is only for covered individuals whom the tax filer certified included as a part of their tax family, at enrollment.
- If any advance premium tax credit payments were not made for coverage under the policy, enter this in Part II information for all covered individuals.
- Individuals enrolled in the same policy but who are not members of the tax family, including children, must be reported on a separate 1095-A form.
- Information in lines 21 through 32, on Part III, is for each month of coverage. This information is determined monthly and may change during the year (changes that affect or other circumstances eligibility for, or the amount of, the premium tax credit). Add the amounts on lines 21 through 32, and enter the total on line 33.
What Happens When Your 1095-A Form Has An Error?
You use the information from form 1095-A to complete form 8962 and reconcile advance payments of the premium tax credit or, if eligible, claim the premium tax credit on your tax return. If the information on the initial form is incorrect or incomplete, you will receive a second 1095-A form.
You will access this updated 1095-A form in the same way as you did before. Look out for the “corrected box” which will be checked at the top of the form. Check it carefully to ensure that all errors have, indeed, been addressed. If you have not yet filed your tax return, use this new form when filing your tax return.
If you have already filed, determine the effect this might have on your tax return. Some changes to the 1095-A may not require any action. If the changes affect your tax return, you must file an amended tax return, form 1040-X.
Does Everyone Have To Keep A Record Of Their Health Insurance Coverage?
As an insured person, you will always need to keep records of insurance policy information in case of future claims or disputes of any kind. The records you need to keep will depend on the type of policy or claim. This goes for all insurance.
To claim premium tax credit subsidies, all you need will be on forms 1095-A and 8862. Most of the relevant information you need will be on these forms, in your healthcare.gov dashboard, and on your policy documents.
If you are not eligible/ not receiving the premium tax credit subsidy/ do not file taxes, you don’t need to have these forms. However, it is always advisable to keep a record of your insurance information for the past year.
The Difference Between The 1095-A And 8962 Forms
Form 8962 must be attached to your federal tax return to reconcile your premium subsidy if one was paid on your behalf during the year for Marketplace coverage. It’s also used if you paid full price for Marketplace coverage and want to claim the subsidy on your tax return.
If you are not a registered taxpayer, you will not receive the premium tax credit, and thus will not need these forms. There is a strong link between the IRS and health insurance in the US. This is because the IRS oversees subsidies for ACA-compliant health insurance.
Once you understand how to access your 1095-a form online and why you need it, the entire process becomes quite simple.
At Enhance Health our expert agents can help you understand what Form 1095-A is and what it means for you. We can explain what to look for in the mail and how to access the form online.
The premium tax credit subsidy helps eligible Americans afford their health insurance. But whether you are eligible for the subsidy, and regardless of whether you are a taxpayer, Enhance Health helps you find affordable insurance.
Give us a call today, and let us find affordable insurance, simple.