Many parts of health care are part of the tax code. Not everyone realizes the depth or extent this is true. Let’s examine a topic people tend to overlook.
Marketplace Health Insurance
What it is not: Health insurance provided through employer, Group health insurance, or Individual insurance not supplied by HealthCare.gov. In these cases you will receive Forms 1095-B and 1095-C which are not as critical to your tax return.
What it is: Health insurance transacted through HealthCare.gov with or without assistance from an insurance agent. It is also a significant part of your annual tax return.
What many individuals do not realize is the tax filing requirements in ALL of these cases:
- They were covered by a Marketplace plan at any time during the year
- They or their spouse were Marketplace covered at any time during the year
- They were named on a parent’s or grandparent’s Marketplace plan at any time during the year
In each of these instances you must submit Form 1095-A to the tax preparer in order to complete Form 8962 on your tax return. Failure to do so will lead to letters from the IRS along with confusion and frustration.
So please send us your 1095-A each and every applicable tax year; it is as essential to your taxes as a W-2!
As always, for specific questions please contact your GBE advisor.