Requirement to Reconcile Advance Payments of the Premium Tax Credit
The premium tax credit helps pay premiums for health insurance purchased from the Marketplace. Eligible individuals may have advance payments of the premium tax credit made on their behalf directly to the insurance company.
If you or a family member enrolled in health insurance through the Marketplace and advance payments of the premium tax credit were made to your insurance company to reduce your monthly premium payment, you must attach Form 8962 to your return to reconcile (compare) the advance payments with your premium tax credit for the year.
The Marketplace is required to send Form 1095-A by January 31,2019, listing the advance payments and other information you need to complete Form 8962.
- You will need Form 1095-A from the Marketplace
- Complete Form 8962 to claim the credit and to reconcile our advance credit payments
- Include Form 8962 with your Form 1040 or Form 1040NR (Don't include Form 1095-A)
Health Coverage Individual Responsibility Payment
Form 2018 you must:
|Report Health Care Coverage or Exempt||or||Make a Shared Responsibility Payment|
|Check the "Full-year health care coverage or exempt" box on the front of Form 1040 to indicate that you, your spouse (if filing jointly), and anyone you can or do claim as a dependent had qualifying health care coverage or a coverage exemption that covered all of 2018 or a combination of qualifying health care coverage and coverage exemption(s) for every month of 2018.||
Make a shared responsibility payment if, for any month in 2018, you, your spouse (if filing jointly), or anyone you can or do claim as a dependent didn't have coverage and doesn't qualify for a coverage exemption. If you can claim any part-year exemptions or exemptions for specific members of your household, use Form 8965. This will reduce the amount of your shared responsibility payment.
- If you or someone in your family had health coverage in 2018, the provider of that coverage is required to send you a Form 1095-A, 1095-B, or 1095-C with Part III completed) that lists individuals in your family who were enrolled in the coverage and shows their months of coverage. You may use this information to help complete Schedule 4, line 61. You should receive Form 1095-A by early February 2019 and Form 1095-B or 1095-C to file your return. You may rely on other information about your coverage to complete Schedule 4, line 61. Don't include Form 1095-A, Form 1095-B, or Form 1095-C with your tax return.
- If you or someone in your family was an employee in 2018, the employer may be required to send you Form 1095-C. Part II of Form 1095-C show whether your employer offered you health insurance coverage and, if so, information about the offer. You should receive Form 1095-C by early March 2019. This information may be relevant if you purchased health insurance coverage for 2018 through the Health Insurance Marketplace and wish to claim the premium tax credit on Schedule 5, line 70. However, you don't need to wait to receive this form to file your return. You may rely on other information received from your employer. If you don't wish to claim the premium tax credit for 2018, you don't need the information in Part II of Form 1095-C.
All information above is provided via irs.gov. For further details on the Affordable Care Act, please visit irs.gov