How to Prepare for Tax Season with Health Insurance Documents

Tax season can feel overwhelming, but being prepared with the right health insurance documents can make the process smoother. If you purchased health insurance through the Covered California marketplace or a similar exchange, one critical document you'll need is Form 1095-A. Here's what you need to know about this form and how to use it during tax season.

What is Form 1095-A?

Form 1095-A, also known as the Health Insurance Marketplace Statement, is a document sent to individuals who enrolled in a health insurance plan through the marketplace. It outlines key details about your coverage, such as: 

-The premium amounts paid. Any advance premium tax credits (APTC) applied to your plan. This form is essential for reconciling your premium tax credits and determining whether you owe additional taxes or qualify for a refund.

- Any advance premium tax credits (APTC) applied to your plan. This form is essential for reconciling your premium tax credits and determining whether you owe additional taxes or qualify for a refund.

- Any advance premium tax credits (APTC) applied to your plan. 

This form is essential for reconciling your premium tax credits and determining whether you owe additional taxes or qualify for a refund.

How to Use Form 1095-A for Taxes

Once you receive Form 1095-A (usually by January 31), here’s how to incorporate it into your tax filing process: 

1. Review the Information Carefully 

- Check the form for accuracy, including your personal details, coverage months, and premium amounts. - If you spot any errors, contact Covered California to request a corrected form. 

2. Complete IRS Form 8962 

- Use the information from your 1095-A to fill out IRS Form 8962, the Premium Tax Credit form. 

- This form helps reconcile the APTC you received with the actual tax credit you’re eligible for based on your final income. 

- You’ll either pay back excess credits or receive additional credits if you were underpaid. 

3. File with Your Tax Return 

- Attach Form 8962 to your federal tax return. 

- Retain your 1095-A for your records, even if you don’t need to submit it with your return.

Retain your 1095-A for your records, even if you don’t need to submit it with your return.

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Can You Claim Deductions for Health Insurance?

If you’re self-employed, you may qualify for the Self-Employed Health Insurance Deduction. This allows you to deduct premiums paid for yourself, your spouse, and dependents, reducing your taxable income. Consult a tax advisor to determine if you qualify for this deduction.

Tips for a Smooth Tax Season

- Organize Your Documents: Keep all health insurance-related paperwork, including receipts and correspondence, in one place. 

- Use Online Resources: Covered California provides digital copies of Form 1095-A through your account, so you can download it if needed. 

- Seek Professional Help: If your tax situation is complex, a tax professional can help ensure you’re maximizing your credits and deductions.

Final Thoughts

Preparing for tax season with your health insurance documents doesn’t have to be daunting. By understanding how to use Form 1095-A and staying organized, you can avoid potential delays and ensure an accurate filing. 

Need more guidance on health insurance or tax credits? Contact us today for personalized support!

📞 Call: (619) 695-2026    

📧 Email: chris.barajas@mfgia.org  

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