Do I Need a 1095-A to File My Taxes?
Understand the importance of Form 1095-A for tax filing, who needs it, and how to address missing or incorrect information.
As tax season approaches, taxpayers often face a complex array of forms and requirements. One important document is Form 1095-A, which is critical for individuals who obtained health insurance through the Health Insurance Marketplace. Knowing whether you need this form for filing taxes can help avoid delays and ensure compliance with IRS rules.
The Role of Form 1095-A
Form 1095-A is vital for those with health insurance through the Health Insurance Marketplace. It provides a record of coverage, premiums paid, and any advance payments of the premium tax credit. This data is essential for completing Form 8962, which reconciles the premium tax credit on your tax return. This reconciliation determines whether you received the correct credit amount or if adjustments are required.
The form includes information such as coverage dates, monthly premium amounts, and the second lowest cost Silver plan (SLCSP) premium. These details help calculate the premium tax credit, which can impact your tax liability or refund. For instance, if the advance credit payments were higher than the actual credit, the excess must be repaid. On the other hand, if the payments were lower, you could receive additional credit.
Who Needs the Form
Form 1095-A is issued to individuals or families enrolled in a health plan through the Health Insurance Marketplace. For the 2024 tax year, those who received advance premium tax credit payments must reconcile them using Form 8962, making Form 1095-A essential. The IRS requires accurate reporting to avoid penalties or tax adjustments.
The form is also necessary for dependents listed on the policy who file their own tax returns. For example, young adults under 26 on a parent’s plan but filing independently must include Form 1095-A details to comply with Affordable Care Act provisions.
Circumstances When It’s Not Required
Form 1095-A is unnecessary for individuals with employer-sponsored health insurance. In these cases, Form 1095-B or 1095-C, which verifies employer-provided coverage, is used instead.
Similarly, those covered by government programs like Medicare, Medicaid, or TRICARE do not need Form 1095-A. These programs have their own reporting methods that meet Affordable Care Act requirements. Taxpayers should ensure they receive the appropriate documentation from their program administrators to confirm their coverage.
Handling Missing or Inaccurate Information
If Form 1095-A is missing or contains errors, taxpayers should contact the Health Insurance Marketplace immediately. Verifying personal information on file can help resolve delays in receiving the form. For those with online accounts, downloading the form directly may be a faster solution.
Inaccurate details, such as incorrect premium amounts or coverage dates, require prompt correction. Taxpayers should request an updated form from the Marketplace. Accurate information is critical for completing Form 8962 properly, as errors could lead to incorrect tax liabilities or refund amounts. The IRS may impose penalties for discrepancies, underscoring the importance of ensuring the form’s accuracy.