Form 1095-A
Candlefocus EditorThe form includes details such as the taxpayer's name, Social Security Number (SSN), health insurance premium paid, any advanced payments of the premium tax credit received, and the Marketplace-assigned policy number. Those eligible for subsidies to help them pay for health insurance must receive a Form 1095-A to be able to file their tax returns.
The form is used in two ways: to determine eligibility for health insurance subsidies, and to file income taxes. Health insurance subsidies are available to tax filers with income levels at or below 400 percent of the federal poverty level. To qualify for the subsidies, taxpayers must provide the exact subsidies they received in the applicable tax year. This information must also be transferred onto Form 8962 and included with the tax return.
Taxpayers do not have to send in the Form 1095-A to report health insurance coverage when filing their taxes. However, the form does contain important information that might be needed for the taxpayer's tax return. It is important to keep the form for a minimum of three years.
The Form 1095-A is an essential tool for taxpayers to ensure they receive the appropriate health insurance subsidies and report the correct information on their tax return. It helps taxpayers to know they got the right credits and avoid any potentially significant penalties. Without it, the accuracy of a taxpayer's taxes can be compromised and could result in a larger tax bill.