The Irs Form 1095-A is an important federal tax document that serves as proof of Minimum Essential Coverage for health care and lists the amount which was paid to Covered California Qualified Health Plan carriers to help with a consumer’s health insurance coverage.
Covered California will begin to send out the 1095-A tax form in the last week of January to consumers who indicated in their application to receive correspondence via mail. If Covered California consumers elected their preferred way of communication to email, they will receive an email from Covered California with the instructions to sign into the account and download their forms. These consumers will not receive their 1095-A form via mail. All consumers can access their IRS Form 1095-A from their Covered CA account on the Home Page or under Documents & Correspondence.
When you file your taxes later this year, 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). For the tax year 2022, consumers will not receive FTB 3895 tax forms because consumers did not receive the California Premium Assistance Subsidy in 2022. FTB 3895 forms are only available for the tax years 2020 & 2021. If you do not receive these tax forms, please contact the party responsible for mailing them 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 tax return 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. You will use the information on the 1095-A and your federal 1040 tax return to complete the 8962.
The tax form 1095-B and 1095-C are also important documents to verify that you had minimum essential health coverage. There is a tax penalty in California for not having MEC or Minimum Essential Coverage in the amount of at least $850 per person, $1,700 per couple, and $425 per dependent child under 18 in your household, 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 2022.
Please contact your tax preparer for more details regarding the 1095-A 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 personal and/or business needs. For us to further assist you, please contact us at info@solidhealthinsurance.com or at 310-909-6135.