1095 Tax Documents are now being mailed out by Barbara Kempen | Jan 13, 2021 | Tax Credits | 0 comments With the new year comes a new you but also, unfortunately, dealing with taxes for last year. When you file your 2020 taxes later this year (Tax day is Thursday, April 15th), you will need to make sure that you have your 1095 tax document which will be distributed by either Covered CA (1095-A), your health insurance carrier (1095-B or 1095-C), or by your employer if they have at least 50 employees (1095-C). Some Covered CA members may also be receiving the FTB 3895 which is a new form similar to the 1095-A but which will show if you received any state tax credits on top of the federal tax credits shown on the 1095. These tax forms are gradually being mailed out and should arrive in January to late February at the latest. If you do not receive these tax forms, please contact the party responsible for mailing out these tax forms. Covered California’s 1095-A includes federal premium assistance, if any, provided to the member. If you applied for health insurance through Covered CA and accepted premium assistance, you will have to reconcile your 2020 taxes with the 8962 tax document to see if you accepted too little or too much in federal premium tax credits. If you underreported your income on Covered CA, you may have to pay back some premium assistance and if you overreported your income, you may possibly receive a tax break at tax time. In addition, with the new state tax credits introduced in 2020, many Covered CA members may also be receiving the FTB 3895 going over any accepted state premium tax credits. You will need to reconcile your state taxes with the FTB 3849, similar to the federal 8962 form. You will use the information on the 1095-A and your federal 1040 tax return to complete the 8962 and you will need the 3895 and CA 540 tax return to complete the 3849. The tax form 1095-B and 1095-C are also important documents to verify that you had minimum essential health coverage in 2020. There is a tax penalty for not having MEC or Minimum Essential Coverage in the amount of $750 per person, $1,500 per couple, $2,250 per family, or 2.5% of household income, whichever is higher. You can use this tax penalty estimator in the case that you were uninsured for part or all of 2020. Please contact your tax preparer for more details regarding the 1095-A & 8962 forms and 1095-B, 1095-C tax forms and also read this informative IRS information sheet. At Solid Health Insurance Services, we are here for you to find you the right health, dental, vision, life and long-term care insurance which best fits your personald and/or business needs. For us to further assist you, please contact us at email@example.com or at 310-909-6135. Submit a Comment Cancel replyYou must be logged in to post a comment.