You Will Receive 1095-A in the Mail
First, you will receive a form from your state’s Marketplace by January 31, 2015. The form is titled 1095-A “Health Insurance Marketplace Statement”.
Form 1095-A includes the information you need to complete Form 8962 – Premium Tax Credit (PTC).
You Will File Form 8962 With Your Federal Tax Return
You will fill out Form 8962 using the information you received from the Marketplace on Form 1095-A.
Form 8962 will ask you to provide information about your family size, actual household income (MAGI), what you paid for health insurance, and the amount of advanced premium tax credit you received.
The form uses this information to reconcile the amount of your premium tax credit you’re eligible for with any advanced premium tax credit you received.
Reconciling Your Advanced Premium Tax Credit
If your actual income was lower than you estimated when you applied for health insurance, you may have received too little in advanced premium tax credits. Form 8962 will identify this, and you would be owed a tax refund.
If your actual income was higher than estimated when you applied for health insurance, you may have received too much in advanced premium tax credits. In this case, you will generally have to pay some or all of it back.
The amount that must be repaid is capped based on a sliding income scale, but people whose income is 400% of poverty or higher will have to pay the entire amount of any tax credit back.
Do I Need to File Form 8962?
According to the IRS, you must file Form 8962 with your federal income tax return (Form 1040, Form 1040A, or Form 1040NR) if any of the following apply to you:
• You are taking a Premium Tax Credit (PTC)
• An Advanced Premium Tax Credit (APTC) was paid for you or another individual in your tax family.
• An APTC was paid for an individual for whom you told the Marketplace you would claim a personal exemption, if no one else claims a personal exemption for that individual.
Reporting your health insurance and premium tax credit information when filing your taxes is new this year. As you prepare to file your federal taxes, remember that you will report your health insurance coverage for 2014 and file Form 8962 if you received (or are claiming) premium tax credits.
Further information available from:
Eric Walters Insurance Services
14482 N 100th Place,
SCOTTSDALE AZ 85260
Eric’s insurance WEB site: www.ewconsultant.biz.