How to Use Your Humana 1095-A Form for Accurate Tax Filing

Filing taxes can be complicated when health insurance subsidies are involved. If you had a Marketplace plan through Humana, you’ll receive Form 1095-A, which is essential for reporting coverage and reconciling premium tax credits. Filing this form incorrectly or failing to include it can lead to IRS issues or unexpected tax bills.

Using 1095-A for Tax Filing

Form 1095-A details your Marketplace health insurance coverage, including monthly premiums, advance premium tax credits, and the full cost of the second-lowest-cost Silver plan (SLCSP) in your area. The SLCSP figure determines the maximum premium tax credit you were eligible for, affecting your final tax liability or refund.

When filing, transfer the information from Form 1095-A to IRS Form 8962. This form calculates your final premium tax credit based on your actual income. If you received more advance credit than you were eligible for, you may have to repay the excess. If you received less, you could qualify for an additional credit, reducing your tax bill or increasing your refund.

The IRS cross-references Form 1095-A with your tax return, so errors—such as incorrect premium amounts or missing months of coverage—can cause delays or trigger IRS notices. Double-check the form against Marketplace statements or payment records to catch mistakes before filing.

Reconciling Premium Tax Credits

Your premium tax credit is based on your actual yearly income, which may differ from the estimate you provided when applying for coverage. Since advance payments were based on that estimate, the IRS requires a final reconciliation.

Form 8962 compares your modified adjusted gross income (MAGI) to federal poverty level (FPL) guidelines for your household size. The IRS determines how much of your income you were expected to contribute toward premiums. If your income was higher than expected, your credit may be lower than what you received, requiring repayment. If your income was lower, you may qualify for additional credit.

Repayment limits apply for those earning under 400% of the FPL, capping how much must be repaid. If your income exceeds 400%, you may have to repay the entire excess credit. Estimating income accurately when applying for coverage helps avoid unexpected tax liabilities.

Coverage Adjustments and Household Changes

Changes to your coverage or household can affect your Form 1095-A and the tax credits you qualify for. Marriage, divorce, childbirth, or a dependent aging out of coverage changes your household size, which impacts subsidy eligibility. If these changes weren’t reported to the Marketplace, your tax form may not reflect your actual situation.

Income fluctuations also affect premium tax credits. A job change, promotion, or loss of income can shift your eligibility. If you didn’t update your income with the Marketplace, your tax credit calculations may not match what you actually received. Underestimating earnings could mean repaying part of the credit, while overestimating could result in additional benefits.

Some states run their own health insurance exchanges with different reporting requirements. If you moved to a new state and enrolled in a different Marketplace plan, you might receive multiple 1095-A forms, requiring careful coordination when filing.

Addressing Form Discrepancies

Errors on Form 1095-A can result from administrative mistakes, reporting delays, or system miscalculations. One common issue is incorrect start or end dates for coverage, which can lead to inaccurate premium tax credit calculations. If your form doesn’t match your actual coverage period, request a corrected version from the Marketplace before filing.

Incorrect premium amounts or advance tax credits can also cause problems. A misreported premium affects the SLCSP figure used to determine your subsidy, potentially skewing your final tax credit. Since the IRS relies on Marketplace data, verify the numbers against billing statements or insurer records. If an error is found, you may need to file a dispute resolution request with the Marketplace.

Document Retention for Reference

Keeping a copy of Form 1095-A and related tax documents is important in case of an IRS audit or future discrepancies. The IRS recommends retaining tax records for at least three years, but in cases of significant underreporting, they may review records up to six years back.

Along with Form 1095-A, store copies of Form 8962, your filed tax return, and supporting documents such as pay stubs, Marketplace correspondence, and premium payment records. These can serve as proof if the IRS questions your reported income or tax credit calculations. Digital storage solutions, such as encrypted cloud services or external hard drives, can help keep records secure.