Incorrect Form 1095-A from Health Insurance Provider

About 800,000 taxpayers who enrolled in insurance policies through HealthCare.gov received erroneous tax information from the government, and were urged on Friday to hold off on filing tax returns until the error could be corrected. Officials said the government sent the wrong tax information to about 800,000 HealthCare.gov customers, and they’re asking those affected to delay filing their 2014 returns.

 

New IRS Form 1095-A

The issue involves a new government form called a 1095-A, which is like a W-2 form for health care for people who got subsidized private coverage under Obama’s law. The subsidies are a significant part of the Affordable Care Act’s design. For people earning too much to qualify for Medicaid in their states but who lack other sources for health insurance, the subsidies can make or break whether they can afford coverage.

 

Incorrect Form 1095-A Problem

Most people received a correct Form 1095-A. However, if the IRS communicates with you because your Form 1095-A is wrong, it is because some forms included the amount of the monthly plan premium Gold 2015 instead of 2014, which should be corrected. The incorrect amount appears in Part III, Column B of Form 1095-A. The IRS is working quickly to resolve this and other problems with forms 1095-A. However, this does not mean your tax credit was wrong; this is only an error when the form is printed.

 

Is your Form 1095-A correct?

If you enrolled in a plan through the Health Insurance Marketplace for 2014, you should’ve received an important tax statement in the mail, called Form 1095-A. This statement has information you need to fill out your 2014 federal income tax return.

Most people received a correct Form 1095-A. However, if we contact you because your Form 1095-A is incorrect, here’s why. Some forms included the monthly premium amount of the second lowest cost Silver plan for 2015 instead of 2014, which needs to be corrected. The incorrect amount is listed in Part III, Column B of the Form 1095-A. We’re working quickly to resolve this and any other issues with the 1095-A forms. This does not mean that your tax credit was incorrect; this is purely an error in what was printed on the form.

 

What is Form 1095-A?

If you or anyone in your household enrolled in a health plan through the Health Insurance Marketplace in 2014, you should have received Form 1095-A — Health Insurance Marketplace Statement. It came from the Marketplace, not the IRS. Use Form 1095-A to obtain information needed to complete Form 8962 (Premium Tax Credit (PTC)). You must complete Form 8962 and file it with your return if you want to claim the premium tax credit or you received premium assistance through advance credit payments. Uninsured people who go to file their taxes and learn they’re facing a penalty will have between March 15 and April 30 to sign up through HealthCare.gov. Otherwise, they would not have had an opportunity until the fall. Fines for being uninsured are going up significantly in 2015.

Keep Form 1095-A with other important tax information, like your W-2 forms and other tax records.

 

IRS Links for Form 1095- A