How to use Form 1095-A
Form 1095-A is a tax form issued by the Health Insurance Marketplace (also known as the Exchange) to individuals who enrolled in a health insurance plan through the Marketplace during the previous year. This form shows important information about your health insurance coverage, including the premium amount you paid, any premium tax credits or subsidies you received, and the months you and your family members were enrolled in the plan.
Taxation is not a simple aspect to take care of and can take a toll on those who are unversed. However, there is a lot that can be taken care of if the individual has ‘educated themselves’ about the various taxes and what they signify. How to use Form 1095-A, and a lot more will be discussed in this article.
How to use Form 1095-A
This tax is applicable for those individuals who own a Marketplace plan in the year 2022, hence should get hold of this form. Not just this, but the individual should also get the form 1095-A, health insurance Market place statement by mail by mid-February. One can easily avail of this from the Healthcare.gov account by mid-January.
Note: it has been advised that the eligible individual should have Form 1095-A and not file them until the form is accurate.
- The Form 1095-A should also include information about the Marketplace plans that any person in your home owned in the year 2022.
- This form comes from Marketplace and not IRS
- It is always important that you keep your 1095-A along with accurate tax information, like W-2 forms and various other records.
One does not need to send Form 1095-A to the government along with the tax return. But, in case you are eligible for the subsidy or the tax credit you will need to transfer the required information to Form 8962 and include it within your tax return. Here, in this case, one does not have to send the form 1095-A, only a copy of the same.
Read More-: Tax Form 8840
How to use Form 1095-A: The Online Platform
This form can easily be available from the HealthCare.gov account in early to mid-January or as late as February 1. To acquire the form online you need to:
- Start by logging on to the HealthCare.gov account
- Go to ‘Your Existing Account’ and select the 2022 Application and NOT the 2023 application.
- Next, select the Tax forms from the Menu on the left side.
- Finally, you need to download the Form 1095-A
Note: There are chances that you might not find the 1095-A on the Marketplace account, you can also contact the Marketplace call centre.
The Tax form 1095-A: What is contained within
The form 1095-A comprises the information about the Market place plans that any members of your family might have in the year 2022, the other details include:
- The premiums paid
- The premium tax credits used
- Also, a figure that is called as ‘Second lowest cost Silver plan’.
- One will need to use the information from within the form 1095-A to fill out Form 8962, Premium tax credit. This way you can check out any differences between the premium tax credit used and the actual amount that you qualify for.
- In case you had the Marketplace coverage but have not taken any advance payment of the Premium tax credit.
To check for the Accuracy in the Tax Form 1095-A
- Check and read the instructions on the back
- Check for accuracy. In case any details regarding your coverage are wrong you will need to contact the Marketplace Call Center. Also, wondering if the monthly enrollment premium is wrong, so you might have to contact the right sources.
- Also, ensure that the details and information related to the ‘Second lowest cost Silver plan- SLCSP is accurate.
How do Find out if the SLCSP information is accurate
Check out the information in Part III, column B of form 1095-A. This is titled ‘Monthly second lowest cost silver plan-SLCSP Premium. This should represent all the figures for each month that any household member owns in the MarketPlace plan.
- You would know if the SLCSP premium is incorrect if you observe the following:
- Part III of Column B has a ‘0’ or is blank, for any particular month that someone from the household has in the MarketPlace plan.
- You have changes in your household that have not been reported in the MarketPlace about. This could include having a baby, transferring, getting divorced or married, or loss of a dependant.
In case any of the above applies to you, then one can use the tax tool to acquire the Premium for the second-lowest-cost silver plan. Once done, and you have all the accurate information in place within the 1095-A form and the second lowest cost Silver plan premium, one is ready to fill out the Premium tax credit.
Who can File Form 1095-A?
Now let us take a look at the individuals who can fill the form 1095-A. Essentially one acquires the tax form 1095-A when preparing for the tax return. In this case, the preparer will use form 1095-A to fill out form 8962: Premium Tax credit if you are eligible for receiving the credits. Here, according to the IRS, if the individual is expected to receive Form 1095-A, you need to wait to file the income tax return until you receive it. As it deals with the claiming or reporting of the tax credits which can in turn affect the amount of income one owns or any refunds that are due, then 1095-A is crucial for the filing process.
Usually, the tax payers receive the form 1095-A by mid-January of the year following the coverage year. This is done either by mail or through the HealthCare.gov accounts. In case the individuals do not receive the forms or find the accuracy in them can contact HealthCare.gov directly. A list is released by the form each month for which the individual has to receive the coverage and the amount paid in premiums. It also comprises the personal details that include your name, address, and Social Security Number, along with your policy number and the insurance company name.
Also Read-: Tax Form 5471
The Form 1095-A is received by Americans who obtain health insurance coverage through the health insurance Marketplace carrier. This form records the main information about health insurance coverage. The form is received by mid-January of the year following the coverage year. One does not need to send Form 1095-A as a part of the tax return, but if you are eligible for a subsidy or tax credit. You also need to copy the relevant details within Form 8962 and include them with in the tax return. However, if you continue to have problems with the same you can easily reach out to our team at +1800-964-3096 or email at [email protected]. You can also visit www.accountingadvice.co and indulge in Live chat with our experts.
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💠Frequently Asked Questions💠
Can I get more than one 1095-A Form?
Yes, you can acquire more than one 1095-A in case one of these applies:
🔹 The MarketPlace plans have been changed during the year.
🔹 New information has been updated by the users on the application, this could include adding or removal of a family member or moving away.
🔹 This can result in a new enrollment within your plan.
🔹 The different household members have different plans.
🔹 A single plan is owned by more than 5 members.
Is there a possibility of my monthly Premium being wrong?
Yes, there are chances that the monthly enrollment premium might be wrong on Form 1095-A, Part III, Column-A. This can be different from the monthly premium that has been paid by you. However, this does not translate to error, because:
🔹 The plan also comprises various benefits along with the benefits like the Health care law, and adult dental or vision benefits. This is the case when the monthly enrollment benefits shown on your form 1095-A will only reflect the amount of Premium that is applicable for the essential health benefits.
🔹 There are chances that either you or any member of the household has started or ended the coverage mid-month. In such a case the form 1095-A will only show the Premiums for the parts of the month coverage was provided.
🔹 In case the individual has enrolled for the stand-alone dental plan and a dependant under 18 years of age has been enrolled. Under such a case, the monthly enrollment premium on form 1095-A will be higher than what is expected as it also includes a part of the dental plan premiums for the pediatric benefits.
🔹 If you have checked that all of the above have been accurate, then the premium on 1095-A is correct. In case you still feel that there are a few details wrongfully entered, then you can contact the MarketPlace call center.
What happens if an individual has a Correct 1095-A form but has already filed the Tax returns using the earlier Version of the Form
In this case, you will need to file an amended return utilizing the information on the rectified 1095-A form.
How to File the 1095-A Form for a previous Year?
Follow all the steps as stated in the above section, however, in step 2 select the application for the previous year.