W-2s, 1099s…and Now 1095-A – Are you prepared for this new IRS Form?
If you use the Healthcare Marketplace to purchase your health insurance there is a new tax form required to file your tax return. Form 1095-A will be sent to you as a recap of your health insurance activity. Here is what you need to know.
W-2s, 1099s…and Now 1095-A
There will be a new tax form filling mailboxes beginning January, 2015. This Form 1095-A is a Health Insurance Marketplace Statement. If you participate in the Healthcare Marketplace, you will need this new form prior to filing your tax return. Here is what you need to know.
Each year the tax-filing season begins with the receipt of forms required to file your tax return. Employees receive W-2s from their employers. Individuals receive various 1099 forms for reporting interest, dividends, capital gains and independent earnings as sole proprietors. If you used the Healthcare Marketplace to purchase health insurance, you will now need your 1095-A form to file your tax return.
What 1095-A provides
Form 1095-A will provide you with a monthly recap of the health insurance you purchased through the Healthcare Marketplace. It will recap the name of the enrollee and any other people covered within the health insurance. The form will also summarize your health insurance policy including the type of coverage and the dates of coverage.
What you need to know
- The information on this form is being sent to the IRS. If there are errors in this form you should take steps immediately to correct them.
- You need this form to file your taxes. If you use the Healthcare Marketplace do not file your tax return without receiving an accurate 1095-A.
- You may receive multiple 1095-A forms. You should receive one Form 1095-A for each policy you have through the Healthcare Marketplace. Receiving multiple forms may also occur if you have non-dependents receiving coverage under your health insurance plan.
- Premium Tax Credit in your future? The information on the form will help determine if you are eligible for the Premium Tax Credit when you file your tax return.
- Advance Payments of the credit may create a tax obligation. Form 1095-A will show you any advance payments of your Premium Tax Credit made to your insurance company. Excess Advance Premium payments may have to be returned when you file your tax return.
- Review the months of coverage. If you do not have health insurance coverage for the entire year, this report may also be used to determine if you owe shared responsibility taxes for part of the year.