Taxpayers Receive Wrong Tax Info on Form 1095-A from Health Insurance Marketplace
Approximately 800,000 taxpayers who received health care coverage in 2014 through the federal insurance marketplace Healthcare.gov were sent the wrong information on their Form 1095-A.
“About 20 percent of the tax filers who had Federally-facilitated Marketplace coverage in 2014 and used tax credits to lower their premium cost —about 800,000 (< 1% of total tax filers) — were sent updated Form 1095-A because the original version they were issued listed an incorrect benchmark plan premium amount,” said a blog post on the Web site of the Centers for Medicare and Medicaid Services.
“Based upon preliminary estimates, we understand that approximately 90-95% of these tax filers haven’t filed their tax return yet. We are advising them to wait until the first week of March when they receive their new form or go online for correct information before filing. For those who have filed their taxes—approximately 50,000 (< 0.05% of total tax filers) —the Treasury Department will provide additional information soon.”
CMS noted that taxpayers who received health coverage under the Affordable Care Act should have received a statement in the mail in February from the health insurance marketplace called a Form 1095-A.
The statement includes important information needed to complete and file their tax returns. One piece of information included on the 1095-A is the premium amount for the “second lowest cost Silver plan” in the taxpayer’s area. This premium amount represents the benchmark plan used to determine the amount of premium tax credit they were eligible to receive.
Unfortunately that information was calculated incorrectly for many taxpayers, although CMS stressed that it won’t be an issue for the majority who received health coverage through Healthcare.gov.