Q. What are the tax forms associated with health insurance and where can I get them?
A. Stock exchanges, employers, and health insurance companies use three different forms to report health insurance coverage to the IRS. And there are two Medicare related forms that some tax filers need to fill out when filing their return.
If you have specific questions about your situation, consult a tax advisor or the Volunteer Income Tax Assistance Program. Here’s a look at the new forms Americans have been receiving since early 2015:
Form 1095-A is sent by health insurance exchanges (HealthCare.gov or a state stock exchange, depending on the state). This form is sent to the IRS and to the policyholder.
It includes information about the cost of your plan, the cost of the second cheapest Silver plan (referral plan) in your area, any premium subsidy that was paid on your behalf during the year, months during which you were covered and which household members were covered by the plan. Form 1095-A is your proof that you had health insurance coverage during the year, and it is also used to reconcile your premium subsidy on your tax return, using Form 8962 (details below). below).
In a normal year, Form 1095-A is essential for preparing your tax return if you have received a premium subsidy or if you have paid the full price for coverage through the trade-in and wish to claim the premium subsidy on your tax return. If you obtained your coverage through the exchange, you normally do not file your tax return until you receive your Form 1095-A. Your 1095-A should be available online in January, and the exchange should also send it to you in early mid-February (by email, post, or both, depending on the preference you indicated during your registration). If the delivery of your 1095-A is delayed or the information on it is incorrect, you can contact your trade-in.
For plan year 2020, however, the rules are different. People who received excess premium tax credits in 2020 do not have to reimburse them to the IRS and do not even have to complete Form 8962 at all. So if the credit amount is Premium tax that was paid on your behalf in 2020 ended up being more than it should have been, you can skip Form 1095-A altogether. For most people, however, it is still important to follow the Form 8962 process when filing a 2020 tax return. This is because it could turn out that the grant that was paid into your name in 2020 was actually too weak. If so, you will be able to claim the additional premium tax credit on your tax return, through the normal process of Form 8962.
Form 1095-B is sent by health insurance companies, government sponsored plans such as Medicare, Medicaid, and CHIP, and self-insured employers who are not required to send Form 1095-C to the square. This form is mailed to the IRS and to the insured. If you buy your own coverage off the exchange, you will receive Form 1095-B instead of Form 1095-A.
Form 1095-B basically shows who was covered and what months of the year they were covered. Premium grants are not available for plans that send a 1095-B. And there’s no longer a penalty for being without health insurance (unless you’re in a state that has its own individual tenure penalty), so having proof of coverage isn’t as important as it was before 2019.
But the IRS indicated that Form 1095-B was yet to be sent by affected entities in 2021 (as was the case in previous years, there had been an extension of the deadline; Form 1095-B was to be provided to registered before March 2, 2021).
Form 1095-C is sent by large employers who are required to offer health insurance coverage as a provision of the ACA. This applies to employers with 50 or more full-time equivalent employees. Form 1095-C is sent to the IRS and to employees. It is provided to all employees who were eligible to join the employer’s plan, whether or not the employee actually joined.
Most people will only receive one of these three forms. But there are certain circumstances where you might receive more than one.
For example, if you work for a large corporation and have access to coverage from your employer, but chose to purchase coverage in the exchange instead, you will receive forms 1095-A and 1095-C ( 1095-C would indicate that you were offered employer-sponsored coverage, even if you declined). And if you went from an individual plan to a plan offered by a large employer mid-year, you’ll end up with a form from each of them. Whatever forms you receive are also received by the IRS, so everyone is on the same page.
Forms 1095-A, B, and C can be delivered electronically or on paper, depending on whether or not you have opted for electronic delivery. You will use the information from the form to complete your tax return, but you will keep it for your records (do not attach it to your tax return.)
When will my Form 1095 arrive?
For coverage 2016 and beyond, the deadline for exchanges, health insurers, and employers to submit forms is January 31 of the following year. But every year so far, the IRS has granted an extension to the time limit for distributing Forms 1095-B and 1095-C. The latest extension, detailed in IRS Notice 2020-76, gives insurers and employers until March 2, 2021 to distribute Forms 1095-B and 1095-C to plan members and employees.
The 1095-A forms (from exchanges) for the 2020 coverage still had to be sent to registrants by February 1, 2021. They sometimes take a while to arrive, so you may have been further in February before you did not receive yours; as shown above, you can log into your online exchange account and see your 1095-A if you haven’t received it in the mail or if you’ve misplaced it.
So, depending on where you purchased your health insurance in 2020, your form may have arrived in January, February or March. If you do not receive your form on time, you can contact the exchange, your health insurance fund, or your employer, depending on who should send you a form.
Most Americans have nothing to do with their health insurance tax returns (for the 2014 to 2018 tax years, most people could simply check the box for “health care coverage for the year. complete ”on their income tax return and continue; this box is no longer part of the federal income tax return, as there is no longer a federal penalty for non-insurance, although it is part of the income tax return. the state in California, New Jersey, Rhode Island, Massachusetts and DC). But if you received a bonus grant from the exchange – or if you paid the full price through the exchange but are eligible to claim the grant on your tax return – you normally need to complete Form 8962 with your return. income.
(As stated above, this does not apply to 2020 tax returns if you would have otherwise had to repay some or all of your advance premium tax credit to the IRS. But this is a one-time exception; From tax year 2021, Form 8962 will again be required for anyone who received an advance premium tax credit. And this is still required if a filer wants to claim some or all of their premium tax credit with their tax return, instead of having received it all up front throughout the year) .
If you received a grant and do not complete Form 8962, you will not be able to continue receiving a grant in the future, so this form is essential for the millions of people who receive premium grants in the exchange. . The information on Form 1095-A is used to complete Form 8962 (again, Form 8962 is not required for 2020 if you should have refunded all or part of the premium tax credit; do not producing for 2020 will not affect grant eligibility in coming years).
For people who did not have minimum essential coverage at any time between 2014 and 2018, Form 8965 was used to request exemptions from the individual mandate penalty, if applicable. The exemptions granted by the IRS are no longer necessary (as there is no longer a federal penalty for non-insurance), so this form is no longer necessary for current tax returns. But some states now have their own individual mandates, and residents can access state tax forms to claim exemptions. Health insurance scholarships may also still have exemptions from the individual mandate, which are necessary to enroll in a catastrophic health plan if you are 30 years of age or older (note that the scholarships use their own form for this; this no. is not a tax form).
Louise Norris is an individual health insurance broker who has written on Medicare and health reform since 2006. She has written dozens of opinions and educational articles on the Affordable Care Act for healthinsurance. org. His updates on the state health exchange are regularly cited by media outlets covering health reform and other health insurance experts.