What Is a Tax Form 1095-A and How Do I Use It?
If your income qualified you for a government subsidy that made your health insurance premiums cheaper last year, you should receive a tax Form 1095-A in the mail.
Wondering what this document is and what you need to do with it? Stride has the answers. Keep reading for a comprehensive set of Form 1095-A instructions.
What Is a Tax Form 1095-A?
The Affordable Care Act offers a tax break to qualifying people purchasing health insurance through the Marketplace (AKA HealthCare.gov or your local state exchange) to help offset the costs associated with health insurance.
This tax break is offered in the form of the Premium Tax Credit. If you receive the Premium Tax Credit, you will receive a Form 1095-A. This document will note information relevant to your insurance plan, your monthly payments (premiums), and your tax credit.
Specifically, on this document you will find:
Your name
Details about the coverage
The months when you were covered by the policy
Any advance payment of tax credits you were eligible for
If you used those tax credits to pay for your health insurance
The amount you paid for coverage
People in your household enrolled in the policy
Who Will Receive Form 1095-A?
If you received a government subsidy in 2023, you will receive a Form 1095-A.
Who Will Send Me My Form 1095-A?
The Marketplace will send you your 1095-A. Remember, you will only receive a tax Form 1095-A if you purchased your health insurance through the Marketplace and received a government subsidy. The Marketplace will also send a copy of your 1095-A to the IRS.
Pro tip: If you didn’t receive your 1095-A in the mail by mid-March, visit your Marketplace website and log in to your account. You should be able to find a digital copy (or request a copy) there with any other relevant tax forms. Don’t reach out to the IRS for a copy because it will not be able to help you.
When Will I Receive My 1095-A?
Your Form 1095-A will be postmarked by January 31 at the very latest.
Keep an especially close eye on your mailbox at the beginning of February for this important tax document.
What Information Is Important on Tax Form 1095-A?
You’ll use the information on your 1095-A to fill out Form 8962, Premium Tax Credit while filing your taxes. This is the form you’ll use to “reconcile your Premium Tax Credit.”
That might sound scary and confusing, but don’t worry, it isn’t. You’ll use Form 8962 to find out if there’s any difference between the government subsidy you received (how much of your health insurance bill the government paid on your behalf each month) and the subsidy that you originally qualified for when you first applied for your health insurance plan.
In order to do this, you will need three key pieces of information, all found in Part III of the Form 1095-A:
Monthly enrollment premiums: Lines 21-32 in Column A
Monthly second lowest cost silver plan (SLCSP) premium: Lines 21-32 in Column B
Monthly advance payment of Premium Tax Credit: Lines 21-32 in Column C
These three key pieces of information will help you reconcile your Premium Tax Credit in Part 2 of Form 8962. If you kept the Marketplace updated of any changes to your income throughout 2022, you shouldn’t end up paying any additional money or receiving a refund. However, if this isn’t the case, Form 8962 will help you figure out what steps to take.
