ACA Health Insurance: Understanding 1095-A vs. 1095-C

In the realm of tax filing, understanding the intricacies of health insurance can be daunting. Especially when it comes to the Affordable Care Act (ACA), navigating the various forms and requirements is crucial. This blog aims to shed light on the differences between 1095-A and 1095-C forms, empowering you with the knowledge to file your taxes accurately.

What is the Difference Between 1095-A and 1095-C Forms?

1095-A Form (Health Insurance Marketplace Statement)

Issued to individuals and families who purchased health insurance through a Health Insurance Marketplace, such as HealthCare.gov or your state’s exchange.
Provides information on your coverage, premiums, and any subsidies received.

1095-C Form (Employer-Provided Health Insurance Offer and Coverage)

Issued to employees who received health insurance coverage through their employers.
Details the type and cost of coverage offered, as well as any contributions made by the employer or employee.

Which Form Do I Need?

Determining which form you need is essential. If you purchased health insurance through the Marketplace, you will receive a 1095-A form. If you received coverage through your employer, you will receive a 1095-C form.

Implications for Tax Filing

During tax filing, the 1095-A or 1095-C form serves as proof of health insurance coverage. It is crucial to report this information accurately to avoid penalties and ensure correct calculation of any premium tax credits or subsidies.

If you did not receive a 1095-A or 1095-C form, contact your insurance provider or health insurance marketplace.
If you have both employer-sponsored and Marketplace coverage, you may need to fill out both a 1095-A and 1095-C form.
If you encounter errors, double-check the information on your form and your tax return. If issues persist, contact a licensed agent for professional assistance.

Conclusion

Understanding the difference between 1095-A and 1095-C forms is essential for accurate tax filing. By staying informed about these forms and their implications, you can avoid hassle and maximize tax savings related to health insurance. If you have any further questions or need personalized guidance, do not hesitate to contact a licensed agent for additional support.