With ever-changing healthcare laws, it can be difficult to keep track of where you stand in regards to income-based discounts on premium prices and coverage options. A 1095-A form is used to show you what portion of your insurance coverage was paid by Covered California during the previous year.
This amount was determined by the household and financial information you provided during enrollment, but the government understands that these figures can fluctuate during the coverage period.
Why Do I Need This?
At the beginning of each year, this form will be mailed out to enrollees of the Affordable Care Act be inform them of the subsidies that were paid to health insurance providers on their behalf. That amount will need to adjusted if your income or dependent situation had any changes throughout the year, so a 1095-A form can help you determine if you paid too little or too much on your health insurance premiums for the previous year.
What Do I Do With This?
As you prepare your taxes, you’ll be able to use this form to determine how much you’ll need to pay in taxes or receive back in the form of a refund. If you had changes to your situation, those adjustments can be satisfied through your end-of-year tax accounting. File your 1095-A form with your W-2 or other income forms and use it to fill out IRS Form 8962 before the season deadline. If you need assistance filling out the tax forms, contact a professional tax preparer to complete the filing or guide you as you submit the information. If you qualify, you may be able to obtain free assistance at www.irs.gov/freefile. If you feel that the amount paid or owed is incorrect, or if you have any other questions regarding your health insurance subsidy, contact Sackett Insurance Services at 707-823-3869.