ACA Health Insurance: Understanding Your Tax Credits and 1095-A Form
Millions of Americans rely on the Affordable Care Act (ACA) for affordable health coverage. The ACA provides tax credits to help reduce the cost of health insurance premiums. If you received tax credits in 2018, it’s important to understand how they will affect your 2019 tax return.
When You Pay Back Tax Credits
Generally, you don’t have to pay back tax credits if your income was below 100% of the Federal Poverty Level (FPL) for the entire year. You may have to repay some or all of the tax credits if your income was above 100% of the FPL.
The 1095-A Form
The 1095-A form is a health insurance statement that shows the coverage you had during the year and the amount of tax credits you received. You will receive a 1095-A form from your health insurance provider by the end of January.
The 1095-B Form
The 1095-B form is a health insurance statement that shows coverage under an employer-sponsored health plan. You will receive a 1095-B form from your employer by the end of January if you had health coverage through your job.
If your income was too high to qualify for tax credits, you may still qualify for a premium tax credit if you received health insurance through your employer. The premium tax credit is a credit against your income tax that helps reduce the cost of your health insurance premiums. You can use the 1095-B form to claim the premium tax credit on your tax return.
How to Get Help
If you have questions about tax credits or your 1095-A form, you can seek advice from a licensed agent. They can help you determine if you are eligible for tax credits and assist you in understanding the 1095-A form.
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