Understanding Your 1095A Health Insurance Form: A Step-by-Step Guide
If you’re like most people, reading through your health insurance forms is a daunting task. The 1095A form is no exception. It carries critical information that you need to have for your health insurance coverage. This form explains what coverage you had during the year, information about your premiums, and any deductions that you qualify for. This guide will help you decode your 1095A form, step-by-step.
What Is The 1095A Form?
The 1095A form is a health insurance tax form that is sent to you by your health insurance marketplace. It provides details on the health insurance coverage that you or your family had in the previous year. The form lists information such as the total monthly premiums paid during the year, the amount of advance payments of the premium tax credit that were paid, and the second-lowest cost silver plan premium.
The 1095A form is used to calculate the premium tax credit that you may be eligible for, and it also reports any advance payments of the premium tax credit.
Understanding the Information in the 1095A Form
The 1095A form has several sections that you need to understand to get the most out of it. These sections include:
Covered Individuals
This section lists the people who were covered by your health insurance plan during the year. It includes the name, the date of birth, the social security number, and a unique identifier for each person.
Premium Amount and Tax Credit
This section lists the monthly premiums you paid for your health insurance and the amount of any advance payments of the premium tax credit that were made on your behalf. This information is then used to reconcile the amount of premium tax credit you may be eligible for on your tax return.
Second-Lowest Cost Silver Plan Premium (SLCSP)
The SLCSP is the monthly premium for the second-lowest cost silver plan available in your area through the health insurance marketplace. This information is important because it is used to calculate your premium tax credit.
Shared Policy Allocation
If you had coverage for yourself and other family members, this section indicates the portion of the premium that should be allocated to each person covered under the policy.
How To Use Your 1095A Form
Once you have your 1095A form, you will need it to complete your tax return for the previous year. Here’s how to use your 1095A Form:
Step 1: Verify the Accuracy of Your Information
Carefully review all the information listed on the form to ensure it is accurate. If any of the information is incorrect, contact your health insurance marketplace directly.
Step 2: Determine Your Premium Tax Credit
Use the information on your form to calculate the premium tax credit you may be eligible for. You can use the instructions provided on the form or consult a tax professional for help.
Step 3: Complete Your Tax Return
Use the information on your form to complete your tax return for the previous year. You will need to report any advance payments of the premium tax credit and reconcile them with the actual credit you are eligible for.
Conclusion
The 1095A form provides essential information about your health insurance coverage that you need to know. Understanding the information listed on this form is critical to accurately calculating your premium tax credit. By following the steps outlined in this guide, you can use your 1095A form to complete your tax return with confidence.
