Form 1095-A Health Insurance Marketplace Statement is the tax form used for taking the premium tax credit or reconciling the advance payments of the premium tax credit. This tax form is not filled out by individuals. Marketplaces file this tax form to provide the necessary information about the coverage such as the monthly enrollment premiums, SLCSP premium, and monthly advance payment of the premium tax credit.
Use Form 1095-A when you file a federal income tax return in 2024 for the 2023 taxes to claim the premium tax credit or reconcile the credit.
The advance premium tax credit is aimed to help individuals and families pay for health coverage through Marketplace. The advance premium tax credit pay towards the health coverage but at an estimated rate. How much you’re eligible to get in this credit is determined at the time of filing a tax return.
So the premium tax credit you’re eligible to take and the advanced payments received might not always be at the same rate. Form 1095-A comes in handy to compare the amount of advance payment received and the premium tax credit eligible.
If the advanced payments received is more than the premium tax credit eligible, the taxpayer will need to pay the difference unless the federal income tax withheld or the estimated payments are more than tax liability in total. On the contrary side, you will get the amount you didn’t receive through advance payments if the total credit amount is more.
When will I get Form 1095-A?
Form 1095-A–regardless of the year–is issued to taxpayers by the Marketplaces between January 10 and 20. The Marketplaces have until January 31st to furnish a copy of Form 1095-A to them.
How to attach 1095-A to Form 1040?
Form 1095-A can be treated as an information return. If you’re filing a mailed-in return, staple 1095-A on the left or right corner of Form 1040. Those who e-file don’t necessarily need to do anything as the tax preparation service will handle the attaching of tax forms automatically.
Do I have to wait for Form 1095-A to file a return?
Yes. The information provided on Form 1095-A is required in order to calculate the premium tax credit. If you skip Form 1095-A, you won’t be able to receive the credit, so wait for it to file your federal income tax return. However, you aren’t required to wait for the other variations of this form such as Forms 1095-B and 1095-C.