Reporting your Health Care Coverage

When filing your tax return, you do not need to send the IRS your health care documents. However, you should keep all of your documents to ensure you are reporting your insurance accurately such as:

• Insurance cards
• 1095 information forms
• Insurer statements
• W-2 or payroll statements reflecting health insurance deductions
• Records of advance payments of the premium tax credit
• Other statements indicating that you, or a member of your family, had health care coverage

There are three health insurance forms.

Form 1095-A (Health Insurance Marketplace Statement)

If you have Marketplace Insurance; when you purchase health insurance, you will receive a Form 1095-A from your Marketplace. This form will have the following:

• Effective date
• Amount of the premium
• Advance payments of the premium tax credit or subsidy

You must use Form 1095-A to complete Form 8962; the Premium Tax Credit (PTC). The PTC is a refundable tax credit to assist individuals/families with low to moderate income afford health insurance through the Marketplace.

You should wait until you obtain this form before filing your tax return to avoid delays with your tax return. Keep in mind, you must still report your 1095-A even though there is no longer a health care penalty.

Form 1095-B (Health Insurance)

Health insurance providers (for example, health insurance companies) send this form to individuals they cover, with information about who was covered and when.

This form helps to determine if you had minimum essential health insurance.

Form 1095-C (Employer Provided Health Insurance and Coverage)

If an employer offers you health insurance, it is recognized as “self-insured coverage.” Employers will send this form to individuals they cover.

For returns after tax year 2019

Although for 2019 – 2025, the individual mandate has expired, tax years prior to 2019 are still subject to the penalty.

This entry was posted on Friday, November 6th, 2020 at 4:51 pm and is filed under Personal Information. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.