Health Insurance Marketplace Statements Impact On Tax Returns

The IRS has reported that taxpayers who receive corrected 2017 Forms 1095-A (also known as the Health Insurance Marketplace Statement) may need to file an amended return, if they have already filed. The IRS highlighted some corrections that may require an amended return. The IRS also instructed taxpayers what to do if they receive a “void” Form 1095-A.

Any taxpayers who believe that they received a corrected or void Form 1095-A by mistake should contact the Health Insurance Marketplace and not the IRS.

Form 1095-A

Individuals with coverage through the Health Insurance Marketplace receive a Form 1095-A from the Marketplace that describes their health coverage. This includes the dates of coverage, the amount of the second lowest cost Silver plan premium (used to determine any premium assistance tax credit), and any amounts of advance payments of the credit. 2017 Health Insurance Marketplace Statements were due to Marketplace enrollees by January 31, 2018.

But some Marketplace enrollees may receive more than one Form 1095-A. This generally occurs when an individual changed Marketplace plans during the year, or if different household members had different plans.

Corrections To Tax Returns

Taxpayers who have already filed their 2017 returns should determine the impact, if any, corrections on Form 1095-A may have on their returns. The IRS explained that any corrections that include changes to the number of individuals covered or their ages, changes to your monthly premiums, changes in the amount of the second lowest cost Silver plan premium, changes in advance payments of the premium assistance tax credit or changes in your months of coverage are likely to affect your tax return.

Void Forms 1095-A

The Health Insurance Marketplace may also issue a void Form 1095-A when an individual applied for Marketplace coverage, but did not complete their enrollment.

A void Form 1095-A would affect a taxpayer’s eligibility for the premium assistance tax credit. Only individuals who enroll in coverage through the Health Insurance Marketplace may claim the credit. If a taxpayer did not complete enrollment in the Marketplace, they would be ineligible for the credit.

If you have any questions about whether corrections to your Health Insurance Marketplace Statement could impact your tax return in Springfield Missouri, please consult your tax accountant in our office.