Do I Really Need That Form 1095 This Year?

Tax Form 1095 has been nothing but a headache since its introduction. This federally mandated form adds complexity, creates taxpayer confusion, and cost billions of dollars to produce. The purpose of the form is simple: to relay proof of your health insurance coverage, but too many taxpayers are now delaying filing tax returns while waiting for this form.

Top line: STOP WAITING for the form to file your tax return! At least for most of you.

Background

As part of the Affordable Care Act, Form 1095 was created to confirm whether you have qualified health insurance and for how many months you have coverage. The proof of coverage includes you, your spouse, and all your dependents covered by the plan for each month of the year. Form 1095 was very difficult to create and for the past number of years, the IRS has granted delays to health insurance providers issuing the form because of the complexity required to create it.

The form is used for two reasons:

  • To determine whether you will be fined for not having qualified health insurance.
  • To help determine your qualification to receive a health insurance Premium Tax Credit.

Current situation

  • The penalty for not having health insurance is no longer in force for the foreseeable future.
  • You need confirmation of health insurance if you purchase your policy through the Marketplace.* You will need the form to see if you qualify for the Premium Tax Credit and to reconcile advanced payments of this credit. The version of the form you receive in the mail will be Form 1095-A.
  • Health insurance providers are still required to provide you with the form.

What you need to know

Do not wait for this form: Remember, you no longer need Form 1095 to file your tax return if you do not have health insurance or you receive your health insurance through your employer.

Wait for the form if: You think you may qualify for the health insurance Premium Tax Credit and you purchase your health insurance through the Marketplace (Form 1095-A).

So for most taxpayers the answer is clear. Stop waiting for Form 1095 and proceed with tax filing for 2019.

* Marketplace. This refers to the Health Insurance Marketplace set up by the federal government and many states to offer individuals, families and small businesses health insurance options that comply with the 2010 Affordable Care Act.

If you have questions regarding your specific situation, please call.  (208) 687-0508

Take Charge of Your Debt & Pay Them Off Faster

Grab This Worksheet to Calculate Your Monthly Nut - Once you've paid your monthly nut (expenses), the rest is PROFIT!

Do  You Know The Health Of Your Service Business?

Do  You Know The Health Of Your Service Business?

Categories

Archives

Skip to content