Form 1095-A is an important document for anyone who has enrolled in a marketplace health insurance plan through the Affordable Care Act (ACA). This form provides crucial information about the insurance coverage you received during the year, and is used to determine the amount of any premium tax credits you received and the amount of those credits you must repay.

If you received a premium tax credit to help pay for your health insurance, it is important to understand the information on Form 1095-A and what it means for your taxes. This form serves as proof of your health insurance coverage and must be included with your tax return when you file.

In this article, we’ll take a closer look at Form 1095-A, what information it contains, and how it is used to calculate your premium tax credit and your tax obligation.

What is Form 1095-A?

Form 1095-A is a tax form that is issued by the marketplace where you enrolled in your health insurance plan. It provides information about the health insurance coverage you received during the year and the premium tax credits you received to help pay for it.

Form 1095-A includes information about:

• Your insurance coverage start and end dates
• The names and Social Security numbers of anyone in your household who was enrolled in the insurance plan
• The monthly premium amounts for your insurance plan
• The amount of premium tax credits you received
• The cost of the second lowest-cost silver plan (SLCSP), which is used to determine your premium tax credit repayment amount if your income is higher than expected

How is Form 1095-A Used to Calculate Your Premium Tax Credit?

Form 1095-A is used to calculate your premium tax credit, which is a federal tax credit that helps lower the cost of your monthly health insurance premiums. If you enrolled in a marketplace health insurance plan and received a premium tax credit to help pay for your insurance, you’ll need to use the information from your Form 1095-A to calculate your credit when you file your taxes.

Your premium tax credit is determined by comparing your estimated annual household income for the year to the federal poverty line for your household size. If your income is less than 400% of the federal poverty line, you may be eligible for a premium tax credit. The amount of your credit will depend on your estimated annual income and the cost of the second lowest-cost silver plan in your area.

If your income is higher than expected during the year, you may have to repay some or all of the premium tax credit you received. The amount you owe will be determined based on your actual household income and the cost of the second lowest-cost silver plan in your area.

The information on Form 1095-A will help you determine how much you owe. You will use this information to complete your tax return and calculate your premium tax credit repayment amount.

It is important to note that if you do not file a tax return or do not include Form 1095-A with your return, you may not be eligible to receive premium tax credits in future years.

FORM 8962

Your 1095-A creates IRS form 8962 to determine if you income was below or above the estimated income used to determine your Premium Tax Credit. If your income was higher than the income used then instead of getting a Refund from the IRS you will owe the IRS.

The information on Form 1095-A is used to complete Form 8962. It is important to send your Income Tax Return with a 8962 form even if you are not require to file a tax return because your income is below the minimum threshold. Failing to file a return and attach form 8962 may result in a delay or reduction of future premium ta credits for your ACA Health Insurance policy premium.