FORM 1095-a: Do I Require It to File My Taxes?

FORM 1095-a
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In the United States, individuals need to file their taxes. To do that, they need a form 1095-A for their health insurance. 1095-a is a health insurance exchange in the marketplace. This article centers on form 1095 A, how to get the form from the IRS, how health insurance online can affect my taxes, and its example. Before we continue, let us know what “form 1095″ is.

What Is the Form 1095

Form 1095 is a collection of internal revenue service (IRS) taxes, which are from the U.S. They are for individuals. They check if they have health insurance and pay certain health bills for the individuals. The form is also known as the Affordable Care Act or Obamacare, which requires that all Americans qualify for health care coverage. They can use it to fill out other forms like 1040, 1040A, 1040EZ, and 8965 and help individuals. The form has three types: 1095 a, b, and c. Let’s throw a little light on the types because this article centers on the 1095-a form.

Types of form 1095

#1. 1095 a 

1095 A is for health insurance from the marketplace and is used in reporting individual health plans.

#2. 1095-b

This form is the healthcare insurance coverage for minor companies with fewer employees that offer health coverage. The form is from Medicaid agencies, e.t.c.  

#3. 1095 C 

This Form is issued to the employee through the company’s employer for health coverage. 

What Is Form 1095-a?

1095-A is an exchange of health insurance from the marketplace for individuals to use in reporting health plans and also in filing taxes. It is not from the IRS (internal revenue service). This means that on the form, the individual’s and their family members’ names will be there. They have information about your insurance policy and its coverage amount, which means the federal government imposes tax credits they are entitled to use to pay for their health insurance and the total amount they pay for the coverage. Individuals can use Form 1095-A to complete their income tax filing, change tax credits, or claim any premium tax credits. It was established in the U.S. and is known as Obamacare or the Affordable Care Act.

How to Get Form 1095-A

There are different ways to get 1095-a, however, more than just knowing ways to get it. The question is, how do I get the form? You can get it from;

  • For 1095-b, you can get it from medicare agencies, Medicaid, chip, companies with fewer than 50 employees, e.t.c.
  • For 1095-A, you can get it from the exchange for health insurance like healthcare.gov, or a state-based exchange, e.t.c., online through email, regular mail, e.t.c., just log in to your account. If you don’t remember your health insurance marketplace login information, click on “Forgot your username or password.” Click on the application if you are trying to find the relevant information for your tax return. At the top left of your screen, select “tax forms”. Click 1095-a for tax filing. Then you save the PDF form and print it.
  • For 1095 C, you can get it from your workplace or from companies with more than 50 employees.

IRS Form 1095-a

The IRS forms are a federal body that views the reports or information of individuals who enroll and qualify for form 1095-a. The reports they give to the IRS are;

  • The IRS gets the general information, which is the purpose of form 1095-A. It is the part where the IRS receives information about the individuals who enroll in or qualify for a health plan through the Health Insurance Marketplace.
  • This is the information that also allows individuals to claim their premium tax credit and reconcile and file an accurate tax return.
  • The IRS shows the requirements that you use to claim your statement, that is, your premium taxes, and when to file your annual reports with the IRS.
  • The IRS allows individuals to file electronically. After filing, you have to submit the information to the IRS electronically through the Department of Health and Human Services Data Services. 

Form 1095 a Online

1095 a is from the health insurance exchange and is done online.

  • In the U.S., some states have health insurance portals. Depending on your state, it can be healthcare.gov or healthcare. Log into your healthcare account that is available in your state.
  • If you have an existing application, select your application. The application is done annually.
  • In the left bar above, you can select the tax form that you want.
  • Lastly, after all the procedures, download the form as shown on the screen.

Form 1095 a Health Insurance

Health insurance is the one that provides form 1095-a in the marketplace for the individual and fills it in. Here is the work of the health insurance exchange, 1095-a;

They send reports of individuals who qualify for the health plan to the IRS. 

Health insurance helps individuals understand what to do with the form, the reasons for it, and how to use it so that it can allow individuals to claim premium credit taxes and reconcile and claim filing return taxes.

The Role of the Marketplace (Health Insurance)

  • If you got your health plan from the market, you should receive a form 1095-A. The marketplace is an online health insurance exchange for health plans for individuals from the government known as “Obamacare”. It is only those that have a 1095-A that are able to claim the premium credit taxes. 
  • The marketplace, also known as the health insurance statement, gives a copy to the IRS for them to see your health insurance policy. 
  • They provide the form for you and fill it out for you with your documentation. Like your name, your amount of coverage, your entitled credit taxes, and if you used the money or not.
  • They provide their policy number to you, which you do not have to forget.
  • They check the start date and ending date in other to file your tax.

Who Qualifies for the Premium Tax Credit?

The income an individual has to qualify for the premium credit tax is 100% to 400% of their income. They are at the federal poverty level. The poverty level is higher in Alaska and Hawaii.

 Therefore, the people able for the premium credit taxes ranges are:

  • For one person: $12,780 to $51,420
  • For a family of two: $16,420 to $68,680
  • For a family of three: $21,860 to $86,840
  • For a family of four: $25,500 to $105,000
  • For a family of five: $30,040 to $123,160, e.t.c.

How Does Form 1095-a Affect My Taxes?

If you do not have form 1095-A, you can not file your taxes. Why, because 1095-a helps you with your health insurance and reduces the spending of your income on health. It also links to your federal income score. After the conclusion of the form, you will have to fill out form 8962 to claim your premium credit taxes, if any. It checks if they are to refund you back or if they reduce your tax. If you don’t have form 1095-a, you can not file your taxes. Here are ways form 1095-a affects your taxes:

  • When filling out the form, if your information is not complete, the IRS can adjust your claim for return tax due to that missing information and the taxes that are due. They will place penalties and interest on that amount, and that is how your form 1095a can affect your taxes.
  • If you have completed your form 1095-a, you have to hold onto the receipt for at least 3 years. Because when filing your taxes, the IRS might ask you for your proof. If you don’t have the form 1095 receipt, it might affect your taxes.
  • The information on your form 1095 is used to check the difference between your federal tax return and the premium credit tax, which might affect your taxes if there are errors.
  • You can log in to healthcare.gov for more information on how form 1095-A can affect your tax.

Form 1095 a Example

The 1095-A example is a clear image of the form itself with all the necessary information about the form, what they will fill for you, and how to file your form 8962 premium credit taxes.

Conclusion

Form 1095-a is required before you can file your taxes. Fill out the form based on whose health insurance you are covered by. If you do not file returns and you seek to reconcile, you won’t be able to get marketplace financial help in the future. Note that you can’t file the form for other health issues like dental policy, e.t.c.

Form 1095 a FAQs

How Do Individuals Receive Their Form?

Individuals can receive their form 1095 A through the mail in early February or late January each year. They can also log in to the site, healthcare.gov, to either approve primarily or be entitled to receive the form. They can download a copy from their account on healthcare.gov.

Who Must File My Form 1095 A?

Health Insurance Marketplaces must file Form 1095-A to report information on all enrollments in qualified health plans in the individual market through the Marketplace.

Do I have to pay back the tax credit for health insurance?

When you get your form 1095-a and you want to file your taxes, if you are paid too much, you have to pay back to the federal tax return, if you are given less you will be paid back. if you don’t file your taxes it might affect your tax return.

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