If you had health insurance coverage through a Marketplace plan in 2014, you should have received a new tax form – the 1095-A. The 1095-A reports information you will use to complete your tax return, most importantly in reconciling your Advance Premium Tax Credit or determining your Premium Tax Credit.
Unfortunately, 800,000 1095-A forms were sent by the Federal Government with incorrect information. This issue impacts Federal marketplace consumers, and may cause confusion resulting in an incorrect tax calculation for filers. However, before you get too concerned, we have some answers to common questions for you.
How do I know if I was affected?
First of all, you should get a phone call or an email from CMS (Centers for Medicare & Medicaid Services), the organization that oversees the Federal Insurance Marketplace, to notify you. You should also see a message in your Marketplace account on Healthcare.gov.
My form has the wrong information, and I already filed. What now?
It depends. If you filed before 2/20 the IRS has determined that Federal enrollees will not be required to file an amended return, or owe additional taxes if affected by this error. So, (in plain English), if you get a new 1095-A, and the result indicates you received too much credit, you do not need to file an amended return and pay back that amount if you filed before 2/20. If you filed after 2/20, you will need to file an amended return. Also note that as it stands right now, state marketplace consumers, must still file an amended Federal return.
However, if your corrected 1095-A data means that you are owed additional credit, you will want to file an amended return to get back what you overpaid.
How can I file an amended return?
If you filed with H&R Block in an office or online, you can have a free amended return completed. If you filed with another preparer, you can visit one of our offices for help preparing an amended return.
I haven’t filed yet. What should I do?
The best advice is to wait. New 1095-A forms are due to be mailed in early March. Then, you can file with the most accurate information for your return. If waiting is not an option for you, use this tool to find the amount of the second lowest cost Silver plan that applied to your household in 2014. Or, you can call the Marketplace Call Center at 1-800-318-2596 (TTY: 1-855-889-4325) for help.
Will my refund be delayed?
Early in tax season, our experts in The Tax Institute had identified that discrepancies concerning the 1095-A and Premium Tax Credit could be a reason for delays. If at least 21 days have passed since your return was received, you should contact the IRS at 1-800-829-1040.
If you haven’t filed your 2014 tax return yet – and do not have minimum essential health coverage for 2015 – you may have another opportunity to enroll in a Marketplace health care plan. The Centers for Medicare & Medicaid Services (CMS) announced a special enrollment period between March 15 and April 30 for some people. You might be able to enroll in a Marketplace health care plan during this time, if:
- You file your 2014 tax return after Feb. 15, 2015, and paid a fee for not having health coverage in 2014
- You aren’t enrolled in coverage through a federally-facilitated Marketplace for 2015
You can find out if you are eligible at healthcare.gov. Remember, if you do qualify for this special enrollment period, you will need to enroll between March 15 and April 30. However, check your state to see if their deadline dates differ from the Federal deadline.