Tackling your taxes can feel like deciphering an ancient scroll, especially when new forms pop up! If you've been on a Health Insurance Marketplace plan, you've likely received a Form 1095-A. This form is absolutely crucial for your tax return, as it helps determine your Premium Tax Credit eligibility and reconcile any advance payments you received.
So, are you ready to conquer Form 1095-A in TurboTax and ensure your tax return is accurate? Let's dive in!
Understanding Form 1095-A: Your Health Insurance Marketplace Statement
Before we begin, it's important to understand what Form 1095-A is and why it's so vital. This form, issued by your Health Insurance Marketplace (like Healthcare.gov or your state's exchange), provides a summary of your health coverage for the year. It details:
Your monthly premiums: How much you were charged for your health insurance plan each month.
The Second Lowest Cost Silver Plan (SLCSP) premium: This is a benchmark premium used by the IRS to calculate your Premium Tax Credit. It's not necessarily what you paid, but a specific figure the Marketplace uses.
Any advance payments of the Premium Tax Credit (APTC): If you received financial assistance to lower your monthly premiums throughout the year, this amount will be listed here.
Why is this so important? The information on Form 1095-A is used to complete IRS Form 8962, Premium Tax Credit. This form "reconciles" the advance payments of the Premium Tax Credit you received with the actual credit you qualify for based on your final income for the year. If you received too much in advance, you might owe some back. If you received too little, you might get a larger refund. Ignoring Form 1095-A can lead to your tax return being rejected by the IRS or trigger inquiries, potentially delaying your refund or even resulting in penalties.
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| How To Add 1095 A To Turbotax |
Step-by-Step Guide: Adding Form 1095-A to TurboTax
Let's get started on adding your Form 1095-A to TurboTax. This guide is for the Do-It-Yourself version of TurboTax Online, but the general principles apply across other TurboTax products.
Step 1: Gather Your Documents and Log In!
Alright, before we even touch TurboTax, let's make sure you're ready!
First things first, do you have your Form 1095-A in hand? This is absolutely essential. It's usually mailed to you by mid-February. If you don't have it, check your Health Insurance Marketplace account online, or contact them directly. Do not proceed without this form.
Are you logged into your TurboTax account? If not, go ahead and sign in now.
Once you're logged in and have your 1095-A, you're all set to begin!
Tip: Rest your eyes, then continue.
Step 2: Navigating to the Health Insurance Section
TurboTax makes it relatively straightforward to find where to input your health insurance information.
Access the "Federal" Section: On the left-hand side of your TurboTax screen, you'll typically see a navigation menu. Click on "Federal Taxes" (or "Personal" if you're using Home & Business).
Locate "Deductions & Credits": Within the "Federal Taxes" section, look for and click on "Deductions & Credits." This is where you'll find various sections related to your income, deductions, and credits.
Expand the "Medical" Category: Scroll down until you find the "Medical" category. You might need to click a down arrow or "Show more" to expand it.
Find "Affordable Care Act (Form 1095-A)": Under the "Medical" section, you'll see an option for "Affordable Care Act (Form 1095-A)." Click on the "Start" or "Update" button next to it.
Self-Pro Tip: If you're having trouble locating it, you can always use the search bar within TurboTax! Simply type "1095-A" in the search box (usually in the upper right corner) and click on the magnifying glass icon. Then, select "Jump to 1095-A" from the search results. This will take you directly to the correct section.
Step 3: Entering Your Form 1095-A Information
Now, it's time to accurately transfer the details from your physical Form 1095-A into TurboTax.
Confirm You Have the Form: TurboTax will likely ask you if you received Form 1095-A. Select "Yes" to proceed.
Enter Policy Information: The first part will ask for basic details from your Form 1095-A, typically found in Part I of the form:
Marketplace Identifier: This is usually a two-digit state abbreviation.
Marketplace-assigned policy number: Enter the policy number exactly as it appears on your form.
Policy issuer's name: This will be the name of the health insurance plan provider.
Provide Covered Individuals' Information: In Part II of your 1095-A, you'll find information about who was covered under the policy. Enter the name and Social Security Number (SSN) for each individual listed. Ensure these match your form exactly.
Input Monthly Premium Details (Part III): This is the most critical part. Your 1095-A will have a table with columns for each month of the year (January through December) and three key amounts:
Column A: Monthly Enrollment Premiums: Enter the premium amount for each month exactly as shown on your 1095-A.
Column B: Monthly Second Lowest Cost Silver Plan (SLCSP) Premium: Again, enter these amounts precisely as they appear on your form. Important Note: If a month has a zero or is blank in Column A (meaning no coverage for that month), leave all three columns (A, B, and C) blank in TurboTax for that month. Do not enter zeros unless your form explicitly shows a zero. Entering zeros when the form is blank can cause errors.
Column C: Monthly Advance Payment of Premium Tax Credit (APTC): Input the amounts from this column for each month. If you did not receive any advance payments for a month, your 1095-A might show a "0" or be blank. If it's "0", enter "0". If it's blank, leave it blank in TurboTax.
Consistency is Key: Double-check every single number you enter against your 1095-A. Even a small typo can lead to discrepancies and potential issues with your tax return.
Step 4: Review and Reconcile
Once you've entered all the data from your Form 1095-A, TurboTax will automatically use this information to generate Form 8962, Premium Tax Credit.
Automatic Calculation: TurboTax will perform the necessary calculations to reconcile the advance payments you received with the actual Premium Tax Credit you're eligible for based on your income and household size as entered in your return.
Review Form 8962 Summary: TurboTax will often show you a summary or a preview of Form 8962. Take a moment to review this.
Does the outcome make sense? If you received a large refund or owe a significant amount due to this form, it's worth reviewing your entries one more time.
Consider your income changes: If your income changed significantly during the year compared to what you estimated when you enrolled in your Marketplace plan, the reconciliation might result in you owing money back or receiving a larger credit. This is normal.
Follow Prompts for Additional Questions: TurboTax might ask additional questions related to your health coverage, especially if there were changes in your household or coverage during the year (e.g., you switched plans, added or removed dependents). Answer these questions accurately.
Step 5: Addressing Common Issues and Troubleshooting
QuickTip: Revisit key lines for better recall.
Sometimes, things don't go perfectly. Here are some common scenarios and how to address them:
Error Message: "Column B must be greater than $0": This typically happens if you incorrectly entered a "0" in Column B for a month when your 1095-A had a blank or should have had a value for the Second Lowest Cost Silver Plan. Go back to that month and remove the "0". If your 1095-A truly shows 0 for SLCSP in a month where there was coverage (Column A has an amount), you might need to contact your Marketplace to get the correct SLCSP figure or consult with a tax professional.
Missing 1095-A: If you know you had Marketplace coverage but didn't receive a 1095-A, do not file your taxes without it. Contact your Health Insurance Marketplace immediately to obtain a copy. You can often download it from your online account.
Corrected 1095-A: If you receive a corrected 1095-A after you've already filed, you may need to file an amended return (Form 1040-X). Wait until your original return has been processed by the IRS before amending.
Multiple 1095-A Forms: You might receive multiple 1095-A forms if you:
Switched Marketplace plans during the year.
Updated your application with new information (e.g., adding or removing family members).
Different household members had different plans.
Simply enter each Form 1095-A separately within the TurboTax section. The software is designed to handle multiple forms.
Not Eligible for Premium Tax Credit / Received too Much/Too Little: If the reconciliation on Form 8962 seems off, first double-check all your entries from Form 1095-A. Then, review your income and household information in TurboTax, as these directly impact the calculation of your Premium Tax Credit.
Remember: The goal is to accurately report the information from your 1095-A. TurboTax handles the complex calculations of Form 8962 for you.
Frequently Asked Questions (FAQs)
Here are 10 related FAQ questions to help you further navigate Form 1095-A and TurboTax:
How to get a copy of my Form 1095-A if I lost it?
You can typically download a copy of your Form 1095-A by logging into your account on your Health Insurance Marketplace website (e.g., Healthcare.gov or your state's exchange). If you can't find it online, contact the Marketplace's call center directly.
How to know if I need Form 1095-A?
You need Form 1095-A if you or anyone in your household purchased health insurance coverage through a Health Insurance Marketplace (also known as an Exchange) during the tax year.
QuickTip: Reading twice makes retention stronger.
How to handle multiple Form 1095-A forms in TurboTax?
If you received multiple 1095-A forms, you should enter each one separately in the TurboTax "Affordable Care Act (Form 1095-A)" section. TurboTax will guide you through adding each policy.
How to fix an error if I entered zeros for months I didn't have coverage?
Go back to the "Affordable Care Act (Form 1095-A)" section in TurboTax. For any month where you did not have Marketplace coverage, ensure that Columns A, B, and C are completely blank – remove any zeros you might have entered.
How to find the Second Lowest Cost Silver Plan (SLCSP) if it's missing on my 1095-A?
The SLCSP should be on your Form 1095-A. If it's missing, contact your Health Insurance Marketplace for clarification. The IRS also provides a tool on their website (HealthCare.gov tax tool) that may help you determine this figure.
How to amend my return if I forgot to enter Form 1095-A?
If you've already filed your return and realize you forgot to include Form 1095-A, you will need to file an amended tax return (Form 1040-X). Wait until your original return has been accepted and processed by the IRS before you amend.
QuickTip: Keep a notepad handy.
How to deal with a corrected Form 1095-A after filing?
If you receive a corrected 1095-A after filing your original return, compare it to the one you used. If there are significant differences that impact your tax liability or refund, you should file an amended return (Form 1040-X) after your original return has been processed.
How to understand why my refund changed significantly after entering 1095-A?
Changes to your refund after entering Form 1095-A usually stem from the Premium Tax Credit reconciliation. If your actual household income was higher than what you estimated when you applied for Marketplace coverage, you might have received too much advance credit and now owe some back, reducing your refund or increasing your tax due. Conversely, if your income was lower, you might get a larger refund.
How to get help if I'm stuck on entering Form 1095-A in TurboTax?
TurboTax offers various support options, including their online community forums, help articles, and paid live expert assistance. Don't hesitate to use these resources if you're encountering persistent issues.
How to know if I still qualify for the Premium Tax Credit?
Your eligibility for the Premium Tax Credit is primarily based on your household income and family size relative to the Federal Poverty Level (FPL). Generally, you qualify if your household income is between 100% and 400% of the FPL for your family size. TurboTax will calculate this for you once you've entered all your income and household information.
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