New 1095-A Tax Form for Individuals Who Purchased Coverage through the Health Insurance Marketplace

Under the Affordable Care Act (ACA), most U.S. citizens and legal non-citizens will be required to report on their 2014 federal income tax return whether members of their household had qualifying health insurance coverage (called “minimum essential coverage”) for months in 2014. This new reporting requirement was implanted to assess individual mandate penalties to those who opted not to purchase health insurance for months in 2014 and did not qualify for a mandate exemption.

Beginning this month, the Health Insurance Marketplace and Health and Human Services will issue a new 1095-A tax form to individuals who purchased coverage through the Health Insurance Marketplace. Only individuals who enrolled in coverage through the Health Insurance Marketplace for coverage in 2014 will receive Form 1095-A from the federal government. This form includes information that consumers will need to complete the Form 8962, the premium tax credit form, as part of the 2014 tax returns.

To learn more about the new ACA tax provisions, you can visit the Internal Revenue Service’s website by clicking here.

If you have questions regarding the ACA’s tax provisions (or the ACA in general) please contact me.