Did you receive an IRS Form 1095-A? If so, you may be wondering what it is and why you need it.
IRS form 1095-A (a subcategory of Form 1095) is a Health Insurance Statement provided by the Marketplace. If you signed up for health insurance through the Health Insurance Marketplace, you should receive a 1095-A for each policy that you hold. The form contains details about your insurance policy, including information about you, the people covered by your policy, and your insurance premiums.
Here’s everything you need to know about Form 1095-A and how to use it. Looking for information on a different document?
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Why do you need Form 1095-A?
If you buy qualifying coverage through the Health Insurance Marketplace, you are eligible for a Premium Tax Credit (PTC). But to apply for the PTC, you’ll need to fill out Form 8962. Form 1095-A contains the information you need to complete Form 8962.
Also, if you’re filing taxes for a previous year, there’s another reason that the 1095-A comes in handy. For tax years before 2019, Obamacare required all individuals to have medical insurance covering their “essential health benefits.” If you didn’t have coverage and didn’t qualify for an exemption, you’d have to pay a penalty fee when you filed your taxes. And since the 1095-A lists the months in which you had qualifying coverage, it can tell you whether or not you’ll have to pay this fee.
What information does Form 1095-A contain?
Form 1095-A comes in three parts.
Part I contains 15 lines of information about the policyholder, including:
- State of enrollment.
- Policy number issued by the Marketplace.
- Name of the insurance provider.
- Recipient of the health insurance policy.
- Social security number of the recipient.
- Birthdate of the recipient.
- Name of the recipient’s spouse (if applicable).
- Spouse’s social security number(if applicable).
- Spouse’s birthdate (if applicable).
- Policy start date.
- Policy end date.
- Street address.
- Country and zip code.
Part II lists the people covered by your health plan. It includes the following information about each person:
- Social security number.
- Coverage start date.
- Coverage termination date.
Part III includes information about each recipient’s coverage on a month-to-month basis, including:
- Enrollment premiums.
- The second-lowest-cost silver plan premium.
- Advanced payments of premium tax returns.
Plus, on the page following Form 1095-A, you can find helpful instructions about the form.
FAQs about IRS Form 1095-A
Here are some commonly asked questions about Form 1095-A.
How do I use Form 1095-A to reconcile my premium tax credit?
When you enroll in a Marketplace health plan, you can opt to reduce your monthly premiums by receiving early payments of the premium tax credit. Of course, this will also reduce the amount of this tax credit that you receive when you file your taxes.
To reconcile your premium tax credit, add up your early payments and compare that figure with the total amount you qualify for based on your income.
How can you do so? You’ll need to use Form 1095-A and Form 8962. First, use the information in Part III of Form 1095-A to fill out Part II of Form 8962. Then, fill out the remaining portions of Form 8962 and file it with your federal tax return.
Do I need to submit Form 8962?
You need to file Form 8962 if either of the following applies to you:
1. You received advanced credit payments (listed in Part III, column C of Form 1095-A).
2. You want to claim the premium tax credit.
Can I file a 1040NR-EZ if I need to submit Form 8962?
No. If you file form 8962, you need to use Form 1040 or 1040NR to file your taxes. Forms 1040-SS, Form 1040NR-EZ, or Form 1040-PR won’t be available to you.
Why did I receive two Form 1095-A’s?
You will receive more than one 1095-A form if you (or a family member) enrolled in multiple qualified health insurance policies. The IRS sends one 1095-A per policy.
If I receive a 1095-A, can I qualify for a premium tax credit?
You can only qualify for a premium tax credit if you enroll in a qualified health plan policy. You may receive a Form 1095-A for a Marketplace catastrophic health plan or a separate dental policy, but those do not entitle you to a premium tax credit.
When can I expect to receive Form 1095-A?
Form 1095-A usually comes in the mail by mid-February. If you want it sooner, you may be able to find it in your HealthCare.gov account by mid-January. If you don’t receive it by the end of February, contact the Marketplace Call Center at 1-800-318-2596.
What is the “Marketplace?”
In the context of healthcare, the Marketplace is an online insurance market where Americans can shop for health insurance options. Some states run their own Marketplace, while others use the federal government’s platform.
Where can I find help with IRS Form 1095-A?
If you need help with IRS Form 1095-A or other tax filing concerns, hiring a tax preparation firm can take the stress off your plate. Review and compare leading tax prep companies below to find the right fit for you.
Jessica Walrack is a personal finance writer at SuperMoney, The Simple Dollar, Interest.com, Commonbond, Bankrate, NextAdvisor, Guardian, Personalloans.org and many others. She specializes in taking personal finance topics like loans, credit cards, and budgeting, and making them accessible and fun.