Tax Form 1095-A: The Details You Need To Know

Tax Form 1095-A: The Details You Need To Know

If you received Tax Form 1095-A in the mail, you must review the information carefully. This form is used to report health insurance coverage information to the IRS. The Tax Form 1095-A contains important details about your health insurance coverage and how it was paid for. In this post, we will go over what each section of Tax Form 1095-A means and how it affects your taxes.

What Is Tax Form 1095-A?

The 1095-A is a form that’s issued by the marketplace to indicate your health insurance coverage. This form provides information about the individual’s health insurance coverage. Such as when it began and how much was paid for premiums. It also includes any subsidies received to make up part or all of these costs. Which means you could get help with your out-of pocket expenses! The form reports any premium tax credits that were received during the year.

Sections In Tax Form 1095-A

Tax Form 1095-A is used to report information about health insurance coverage. The form is divided into four sections:

#1: General Information

  • The first part of the Tax Form 1095-A provides general information about the insurance coverage. This includes the name, address, and contact information of the health insurance marketplace where the individual purchased their coverage.
  • It also includes the individual’s name, address, and Social Security number. In addition, this part of the form lists the effective dates of coverage and the premium amount paid for the coverage.
  • Finally, it lists any dependents who were covered under the plan. The individual should be aware of any subsidies they may eligible for and how those benefits will affect them. Part 1 of the form is relatively straightforward and should be completed with care.Tax Form 1095-A: The Details You Need To Know

#2: Health Insurance Policy Information

  • The second part of the Health Insurance Policy Information in Tax Form 1095-A is the Coverage and Household Information. As a policy-holder, you are required to submit information about your health insurance and those who share it with you.
  • This section asks for basic information about your policy. You need to know the basics of your policy, like what type and when it expires.
  • You will also need to provide information on who is covered by the policy and how much they pay for their coverage. This includes their names, dates of birth, and Social Security numbers. Finally, you will need to provide a signature confirming that the information you have provided is accurate.

#3: Individual Shared Responsibility Payment

  • The Individual Shared Responsibility Payment is a tax that you may have to pay if you don’t have health insurance that meets the requirements of the Affordable Care Act. The amount of the payment is based on your income and family size.
  • You’ll pay the higher of two amounts: a percentage of your household income, or a flat fee per person in your family. For example, for the tax year 2016, the maximum percentage is 2.5% of your household income, and the maximum flat fee is $2,085 per person in your family.
  • By using information from your tax return you can calculate the payment. If you had health insurance for part of the year, you’ll make a partial payment. The payment is due when you file your federal income tax return for the year. If you don’t have health insurance and don’t make a payment, you may be subject to a tax penalty.Tax Form 1095-A: The Details You Need To Know

#4: Certification

  • You can use Tax Form 1095-A to report information about health insurance coverage. Part 4 of the form is used to certify that the information reported in Part 1 is accurate.
  • A health insurance company authorized representative should complete the certification. The authorized representative must sign and date the form and must include their contact information.
  • The certification must state that the insurance company has reviewed your information and determined it is accurate. The information on Tax Form 1095-A is reliable and can be used for tax purposes.

Conclusion

The Tax Form is an important document that contains a lot of information about your health insurance coverage. You must review this form carefully to ensure that all of the information is accurate. If you’re not sure how to complete your tax form, contact a professional for assistance. Thank you for reading our post on understanding and reviewing the tax form.

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