IRS Form 1095-A (Health Insurance Marketplace Statement) is issued to individuals who enrolled in health coverage through the Affordable Care Act (ACA) Marketplace. This form provides essential information needed to:
- Reconcile premium tax credits on your tax return
- Verify months of coverage
- Calculate any additional premium tax credit or repayment
Who Receives Form 1095-A?
- You should receive this form if you:
- Enrolled in a Marketplace health insurance plan
- Received advance premium tax credits (APTC)
- Had family members covered under your plan
Important: If you have Marketplace coverage, you must wait for your Form 1095-A before filing taxes. Professional tax services can help if you haven’t received yours by February.
Step-by-Step Guide to Completing Form 1095-A
Step 1: Verify Your Form 1095-A Information
Carefully review all sections for accuracy:
- Part I: Policy information (dates, covered individuals)
- Part II: Monthly premium amounts
- Part III: Advance premium tax credits
Note: Compare with your financial statements and insurance documents. Discrepancies require contacting the Marketplace immediately.
Step 2: Transfer Information to Form 8962
Use your 1095-A to complete:
- Line 1: Annual enrollment premiums (from Part III, Column A)
- Line 2: Annual applicable benchmark premium (from Part III, Column B)
- Line 3: Annual advance payments (from Part III, Column C)
Step 3: Reconcile Premium Tax Credits
Calculate the difference between:
- The premium tax credit you qualified for based on actual income
- The advance payments you received
This determines whether you:
- Get additional credit (Form 1040, Schedule 3)
- Must repay excess credits (Form 1040, Schedule 2)
Step 4: File With Your Tax Return
- Keep Form 1095-A for your records
- Don’t mail it to the IRS unless specifically requested
- Attach completed Form 8962 to your return
Common Mistakes to Avoid
- Filing before receiving Form 1095-A – Wait until you have the correct document
- Using incorrect monthly figures – Double-check all 12 months
- Miscounting family members – Include all covered individuals
- Missing repayment requirements – The IRS will assess penalties
For complex situations or missing forms, professional tax services can ensure proper reconciliation.
Final Thoughts
Properly handling IRS Form 1095-A is essential for accurately reporting your Marketplace health coverage and premium tax credits. By carefully reviewing all information, reconciling it with your financial statements, and completing the required tax forms, you can avoid common pitfalls. For households with complex insurance situations or those who need help navigating repayment calculations, professional tax services can provide valuable peace of mind.
