Navigating Tax Season
Navigating Tax Season: What Health Insurance Documents You Need
As Tax Day nears each April, individuals and small business owners alike often find themselves scrambling to pull together all the documents required for filing. One commonly overlooked area is health insurance. Whether you enrolled through the Marketplace, received employer coverage, or purchased a plan independently, it’s important to understand what health insurance documents you need to file your taxes accurately.
Understanding IRS Health Insurance Forms
There are three main IRS forms related to health coverage:
Form 1095-A: This form is sent to those who purchased health insurance through the Health Insurance Marketplace (ACA). It outlines the premiums paid and any subsidies received. This form is crucial for reconciling advance premium tax credits.
Form 1095-B: Issued by insurance companies or small employers not required to offer insurance under the ACA. It confirms that you and your dependents had minimum essential coverage.
Form 1095-C: Provided by large employers (with 50 or more full-time employees), this form details the health insurance offered to you throughout the year.
Not all these forms need to be submitted with your return, but it’s important to keep them in your records and ensure the information matches what you report to the IRS.
If You Received Subsidies
If you received subsidies through the Marketplace, reconciling your advance premium tax credit with your actual income is essential. This is done using Form 8962, which pulls information from Form 1095-A. Failing to include this step could delay your refund or cause the IRS to request additional documentation.
Common Health Insurance Tax Mistakes
* Forgetting to reconcile subsidies
* Filing with incorrect Social Security numbers or names that don’t match IRS records
* Overlooking the need to report all months of coverage
* Not updating income or household changes during the year, which can affect subsidy amountsWork with a Tax Professional if You Had Coverage Changes
* Forgetting to reconcile subsidies
* Filing with incorrect Social Security numbers or names that don’t match IRS records
* Overlooking the need to report all months of coverage
* Not updating income or household changes during the year, which can affect subsidy amountsWork with a Tax Professional if You Had Coverage Changes
If you experienced a coverage gap, change in employment, or switched plans during the year, it may complicate your filing. A tax professional can help you navigate multiple 1095 forms,
reconcile any overpayments, and avoid IRS penalties.
Need Help?
At TrueCare Insurance Services, we assist clients year-round—not just during open enrollment. If you didn’t receive your health insurance forms or aren’t sure how to file correctly, we’re here to help.