Taxes

Form 1095-A: Health Insurance Market Statement Definition

What is Form 1095-A: Health Insurance Marketplace Statement?

Form 1095-A is a form sent to Americans who obtain health insurance through a health insurance marketplace carrier.

This form does not have to be returned to the government, but can serve as a record of individual coverage. It includes information such as the effective date of coverage, the amount of premium paid each month, and any advance payments for premium tax credits or subsidies.

This form was created under the Affordable Care Act (ACA), commonly known as Obamacare. People who receive insurance from the marketplace created by the law may be eligible for subsidized insurance or tax credits. Penalties for uninsured taxpayers were removed in early 2019.

key takeaways

  • If you purchased health insurance through Marketplace, you should receive Form 1095-A.
  • You don’t have to send the form with your tax return.
  • However, if you qualify for a subsidy or tax credit, you will need to transfer that information to Form 8962 and include it on your tax return.

Who can file Form 1095-A: Health Insurance Marketplace Statement?

If you are enrolled in a qualified health plan through the federal health insurance marketplace or a state exchange, you will receive Form 1095-A. Exchanges use this form to provide information about their coverage to participants in different markets.

You do not have to file the 1095-A form itself. You must provide the information on the form or confirm that you have received the information on your federal tax return.

If you qualify for the Premium Tax Credit, you may need to attach the relevant form, Form 8962: Premium Tax Credit.

The penalty for not having health insurance has been removed; however, some buyers are still eligible for a tax credit for purchasing it. Thanks to the 2021 U.S. Relief Program, all taxpayers who purchase insurance in the ACA market are now eligible for this credit; previously, filers were ineligible if their income was more than 400% of the federal poverty level.

You should keep Form 1095-A for your records. As the title suggests, this form is published by the Health Insurance Marketplace.

How to File Form 1095-A: Health Insurance Marketplace Statement

When preparing your tax return, if you are eligible for the credit, you or your tax preparer will use the 1095-A to complete Form 8962: Premium Tax Credit.

According to the IRS, if you wish to receive Form 1095-A, you should wait until you receive it before filing your income tax return. Because it involves filing or reporting tax credits, which in turn affects the amount of income tax you owe or any refunds you owe, the 1095-A is critical in the filing process.

Taxpayers should pay by mail or at their Healthcare website account. Individuals who did not receive the form or who find the form inaccurate can contact HealthCare.gov directly.

This table lists each month you get coverage and the amount of premium you pay. It also contains personal information, including your name, address and social security number. Your policy number and insurance company name will also appear on the form.

The complete 1095-A can be found on the IRS website.

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