Filing Form 1095-A: What It Is and How It Affects Your U.S. Taxes

Filing Form 1095-A: What It Is and How It Affects Your U.S. Taxes

by
J1 SummerTaxBack
March 6, 2024
⏱️ 4-minute read

As tax season approaches, it’s crucial to understand the forms that can directly affect your tax return.
One of these key documents is Form 1095-A, especially if you were enrolled in a Marketplace health insurance plan during the year.

This guide explains what the form is, how to get it, how it impacts your taxes, and how to include it when filing your U.S. tax return as a nonresident.

🩺 What Is Form 1095-A?

Form 1095-A, officially called the Health Insurance Marketplace Statement, is sent to anyone who purchased a qualified health insurance plan through the Marketplace (also known as “Obamacare”).

It includes important details such as:

• The amount of your monthly premiums

• Any advance premium tax credits you received

• Your coverage information by month

Essentially, this form allows you (and the IRS) to confirm that you had health coverage and whether you received any tax credits to lower your insurance costs.

📬 How to Get Form 1095-A

Most people receive Form 1095-A by mail from the Health Insurance Marketplace by mid-February.

You can also download it electronically from your online Marketplace account.
✅ Make sure your contact information is current to avoid delays.

If you don’t receive the form or have trouble accessing it, contact your Marketplace directly or your insurance provider to request a copy.

💵 How Does Form 1095-A Affect Your Taxes?

Form 1095-A is used to determine if you qualify for the Premium Tax Credit (PTC) — a benefit that can make health insurance more affordable.

When filing your return, this form helps:

• Calculate the correct amount of tax credit you’re entitled to

• Reconcile any advance payments you received

• Ensure your return matches IRS records and avoids errors

💡 If your income or household situation changed during the year, your premium credit may differ from the advance credit paid on your behalf. This means you could owe a balance — or receive a refund — depending on your situation.

💰 What Are Premium Tax Credits?

The Premium Tax Credit (PTC) helps individuals and families with moderate or low income pay for Marketplace health insurance.

You can get this credit in two ways:
1️⃣ Advance payment – reduces your monthly premium during the year.
2️⃣ Refundable credit – claimed at the end of the year when filing your tax return.

If too much credit was paid in advance, you may need to repay part of it when you file your taxes.
If you received too little, you’ll get the remaining amount as a refund.

🧾 How to Include Form 1095-A With Your Nonresident Tax Return

When preparing your U.S. taxes, make sure to report the information from Form 1095-A correctly.

You’ll need details such as:

• Marketplace Identifier

• Policy Number

• Start and end dates of your coverage

• Total premiums paid and advance payments received

These numbers are typically shown in Part III of the form.

Once entered, the information will be used to calculate your final credit and ensure your return is accurate and compliant.

💻 Filing Your Taxes as a Nonresident

If you are a nonresident, such as a J-1 or F-1 visa holder, you must use Form 1040-NR to file your tax return.

Make sure to:
✅ Include your 1095-A information if applicable
✅ Report any income earned in the U.S.
✅ Attach supporting forms (e.g., W-2, 1042-S)
✅ File before the April 15 deadline

By submitting a complete and accurate tax return, you’ll stay compliant with the IRS and ensure you receive any refund or tax credit you’re entitled to.

🌍 In Summary

Health insurance tax credits can be confusing, but understanding Form 1095-A ensures you file correctly and make the most of your return.