Reuters

(Reuters)

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Obamacare, Form 1095-A, and The Premium Tax Credit

By Taxpertise FOXBusiness

The Affordable Care Act brought additional complexity to the tax code. There are several new forms all relating to Obamacare. One form that many taxpayers may receive is IRS Form 1095-A Health Insurance Marketplace Statement. If you applied for health insurance through one of exchanges on the Health Insurance Marketplace, you’ll receive this form.

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The form is not issued by the IRS. It is issued by the Marketplace where you purchased your health insurance coverage. The forms were issued at the end of January, so you will likely have received it by early February. If you did not receive the form (many did not), contact the Marketplace directly to obtain a copy. You will need this form when completing your income tax return.

Form 1095-A provides the dates of coverage, the amounts you spent each month for the coverage, who in your household was covered and other information needed to complete IRS Form 8962 Premium Tax Credit. The information on the 1095-A will be used to reconcile advance payments of the premium tax credit made on your behalf to your insurance provider and to calculate the premium tax credit you are claiming on your tax return.

You may receive more than one Form 1095-A if different members of your household had different health plans or if you updated your coverage information during the year or if you changed plans during 2014. Other life-changing factors such as birth of a child, marriage or divorce, will impact the calculations for the Premium Tax Credit.

You may find these new forms confusing. A tax professional can certainly help you complete your tax return if that is the case. You can also find more information at HealthCare.gov or the health insurance exchange in your state.

According to Ferdinand Morales Vice President of MAXIMUS, these contact centers can answer the most important questions, including what actions taxpayers must take if their form has an error:

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  1. Why did I receive this form?
  2. What do certain terms mean (e.g., Second Lowest Cost Silver Plan)?
  3. What do I do with this form once I’ve filled it out?
  4. How can I use this form to file my 2014 tax return?
  5. Is my 1095-A form correct (and what do I do if it’s not)?

Morales states, “This is a new concept for everybody. It’s important to seek help because it is a complicated process and there are many new tax forms involved.”

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