Monthly Archives: January 2015

Important Obamacare Tax Return Form 1095-A

By January 31, some Californians will receive an important Obamacare Tax Return Form (1095-A), who enrolled in individual plan health coverage through Covered California. You will need this important statement (Form 1095-A) in order to complete your taxes.

The notice advises Consumers to contact Covered California right away if they think there is a mistake on the Form 1095-A, at 1800.300.1506.  If you want to see what the notice looks like and get a little more detail on this tax form, view it here at Coverage California:  website link.  If you are frustrated and don’t have time for this, consider the suggestion below.

Special note:  If you are a Kaiser Member, see additional information here.

Suggestion:  As the individual marketplace continues to deteriorate, the small group market has gained a firmer footing, including stable PPO networks and easier participation rules with Kaiser and traditional PPO plans.  Is it time to review available small group plans?   Reserve your appointment early for Open Enrollment, which begins this November.  Find local assistance in San Jose, Santa Clara and the San Francisco bay area or via telephone, throughout Northern and Southern California..

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Kaiser Permanente and Tax Form 1095-A

Taxes FAQs — On-Exchange Members

 (Excerpts from a Kaiser Permanente Northern California FAQ released in January 2015)

Includes: Exchange members, both in state and federal exchanges  Note:  If you are not a Kaiser Member, see our related article written for non-Kaiser members who purchased coverage through Covered California.

What is Form 1095-A? What do I do with it?

If you or anyone in your household enrolled in a health plan through the health insurance marketplace in 2014, you’ll get Form 1095-A, Health Insurance Marketplace Statement from the marketplace. You should receive it in the mail by early February. Keep Form 1095-A with other important tax information, like your W-2 forms and other tax records. You’ll use information from the form to fill out your 2014 federal income tax return.

Consumers use the information included on Form 1095-A, Health Insurance Marketplace Statement, to complete Form 8962, Premium Tax Credit (PTC). Consumers file Form 8962 with their 1040 tax returns if they want to claim the premium tax credit or if they received advance payments (APTC) made to their insurance company.

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1.  I’ve heard that my health coverage may impact my taxes. Is that true?

Yes, your 2014 health coverage affects your income taxes in two ways.

1)  Federal tax law requires everyone to have health insurance or to be eligible for an exemption from this requirement in 2014. If you and/or your dependents did not have qualifying health coverage, then you may owe a penalty.

For more information on exemptions for not having health coverage, visit:
https://www.healthcare.gov/fees-exemptions/exemptions-from-the-fee/.

2)  If you received federal financial assistance, you will need to report the amount you received throughout the year to the IRS on your taxes.

a) If the amount of assistance was less than the premium tax credit that you qualified for, then you should receive a credit.

b) If the amount of assistance you received was more than the premium tax credit that you qualified for, then you may need to pay some or all of the advance payment of the premium tax credit back.

c) You may have to complete one or two new tax forms.

d) You may have to get a health coverage exemption or pay a penalty with your tax return if you didn’t have health coverage in 2014. Some exemptions may not be available now. To learn whether you may qualify for an exemption, you should contact your marketplace.

For more information on how health coverage may impact taxes, contact your marketplace, or visit https://www.healthcare.gov/taxes/ or http://www.irs.gov/ACA.

2.  How was my federal financial assistance calculated?

The amount of Advance Premium Tax Credit (APTC — also called federal financial assistance for premium payment) that was paid on your behalf to Kaiser Permanente to lower your premiums in 2014 was based on the income and family size you estimated when you applied for health coverage, as well as the cost of the second lowest priced silver plan offered through your health insurance marketplace.

Based on your actual income and dependent information for 2014, your APTC premium tax credit will be recalculated and will be compared to the amount of the advance payments made to Kaiser Permanente for your premiums now that you’re filing your taxes. Keep in mind that any change to actual income or change in dependents from what you estimated could increase or decrease the actual premium tax credit for which you qualify in 2014.

If, based on your final 2014 information, the amount of assistance was

— less than you were entitled to, you may receive a credit on your taxes, or

 more than you were entitled to, you may need to pay some or all of the advance payment back.

3.  What do I need to file my taxes?

If anyone in your household enrolled in a health plan through the marketplace in 2014, you’ll need to use the 1095-A statement, which you will receive from the marketplace, when you file your federal income taxes. You should receive it in the mail by early February. Keep your 1095-A statement with your W-2 forms and other tax records.

Consumers use the information included on the 1095-A statement to complete Form 8962, Premium Tax Credit (PTC). Consumers file Form 8962 with their 1040 tax returns if they want to claim the premium tax credit or if they received advance payments (APTC) made to their insurance company.

For more information on the 1095-A statement, contact your marketplace, or visit https://www.healthcare.gov/taxes/ or http://www.irs.gov/ACA.

For more information on Form 8962 and Form 1040, visit http://www.irs.gov/ACA. You can also find copies of Form 8962 and Form 1040 on http://www.irs.gov/ACA.

4.  What is Form 1095-A? What do I do with it?

If you or anyone in your household enrolled in a health plan through the health insurance marketplace in 2014, you’ll get Form 1095-A, Health Insurance Marketplace Statement from the marketplace. You should receive it in the mail by early February. Keep Form 1095-A with other important tax information, like your W-2 forms and other tax records. You’ll use information from the form to fill out your 2014 federal income tax return.

Consumers use the information included on Form 1095-A, Health Insurance Marketplace Statement, to complete Form 8962, Premium Tax Credit (PTC). Consumers file Form 8962 with their 1040 tax returns if they want to claim the premium tax credit or if they received advance payments (APTC) made to their insurance company.

For more information on Form 1095-A, contact your marketplace, or visit
https://www.healthcare.gov/taxes/ or http://www.irs.gov/ACA.

5.  If I’m the main household subscriber, will I get one 1095-A statement or multiple 1095-A statements, for each member of the family?

If you are all on the same plan, you’ll get one statement, which has all the members of your household listed. If you are on separate plans, you’ll get separate 1095-A statements.

For more information on Form 1095-A, contact your marketplace, or visit
https://www.healthcare.gov/taxes/ or http://www.irs.gov/ACA.

6.  What if I enrolled in a health plan through the marketplace during a special enrollment period? Will I still get a 1095-A marketplace statement?

Yes, you will receive a 1095-A marketplace statement for the period of enrollment in the health plan through the marketplace.

For more information on Form 1095-A, contact your marketplace, or visit https://www.healthcare.gov/taxes/ or http://www.irs.gov/ACA.
7.  Will I have to pay a penalty if I was covered 10 months in 2014?

For more information, talk to your tax professional if you have one or visit http://www.irs.gov/uac/Am-I-required-to-make-an-Individual-Shared-Responsibility-Payment%3F.

8.  What is Form 8962?

Consumers file Form 8962, Premium Tax Credit (PTC), with their tax return if they want to claim the premium tax credit or if they received advance payments (APTC) made to their health plan. For more information on Form 8962, and to find a copy of Form 8962, visit http://www.irs.gov/ACA.

9.  What does reconciliation mean?

When you file your federal taxes, consumers who received federal financial assistance (also called subsidies) will use the information on Form 1095-A to complete Form 8962, Premium Tax Credit (PTC). You will use Form 8962 to compare how much your health plan received for 2014 premiums that were advance payments of your premium tax credit (based on an estimate of the amount you would be entitled to) to the final premium tax credit you qualify for. For more information, contact your marketplace, or visit https://www.healthcare.gov/taxes/ or http://www.irs.gov/ACA.

10.  How do I get a copy of my Kaiser Tax Form 1095-A? (I lost it or never received it.)

Contact your marketplace for another copy of Form 1095-A.

For Georgia and Virginia members: You can download a copy at HealthCare.gov in a new section of My Account.

For Colorado members: you can download a copy of your form under “my documents” in your Connect for Health Colorado account starting Tuesday, February 3, 2015.

For more information on Form 1095-A, refer to the Form 1095-A instructions, contact your marketplace, or visit https://www.healthcare.gov/taxes/ or http://www.irs.gov/ACA.

11.  Where can I get help filing my taxes?

Consumers may get free assistance with filling out their taxes. This may include free access to tax software programs, or free in-person assistance. For more information, visit http://www.irs.gov/freefile or http://www.irs.gov/VITA.

Consumers can also seek professional tax assistance. For more information about choosing a tax professional, visit http://www.irs.gov/Tax-Professionals.

If you have additional questions about your taxes, visit http://www.irs.gov/ACA.

12.  Why did I get more than one Kaiser Tax Form 1095-A?

Just as some households receive multiple W-2s if individuals have multiple jobs, some households will get multiple Form 1095-As if they were covered under different plans or made changes to their income or dependent information during the year. Be sure to keep all the 1095-As you get and keep them with your important tax documents.

Sometimes a consumer may receive a “Corrected” Form 1095-A. You should use the most recent Form 1095-A that you receive when you complete your taxes. For more information on Form 1095-A, refer to the Form 1095-A instructions, contact your marketplace, or visit https://www.healthcare.gov/taxes/ or http://www.irs.gov/ACA.

13.  What if I think information on my Form 1095-A is incorrect?

For information that you believe is incorrect on Form 1095-A, consumers should contact their marketplace call center for research and resolution.

For more information on Form 1095-A, refer to the Form 1095-A instructions, contact your marketplace, or visit https://www.healthcare.gov/taxes/ or http://www.irs.gov/ACA.

14. What if I already filed my tax return before I got my 1095-A, or before I got a corrected one?

You may have to file an amended federal income tax return. This means you’ll have to file a corrected version of your return with the IRS.

For more information about filing an amended tax return contact your tax professional if you have one, and/or your marketplace or visit https://www.healthcare.gov/taxes/. The IRS also has information about filing an amended return, visit https://www.healthcare.gov/taxes/marketplace-health-plan/.

15.  Will I get a 1095-A if I’m ONLY enrolled in a stand-alone dental plan or a minimum coverage plan (previously called catastrophic plan)?

No, you won’t get a 1095-A statement if you’re enrolled in a minimum coverage plan. These plans don’t qualify for subsidies. However, if you are enrolled in a stand-alone dental plan and a health plan, you may receive a 1095-A statement.

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