Tax Form 1095 has been nothing but a headache since its introduction. This federally mandated form adds complexity, creates taxpayer confusion, and cost billions of dollars to produce. The purpose of the form is simple: to relay proof of your health insurance coverage, but too many taxpayers are now delaying filing tax returns while waiting for this form.
Top line: STOP WAITING for the form to file your tax return! At least for most of you.
As part of the Affordable Care Act, Form 1095 was created to confirm whether you have qualified health insurance and for how many months you have coverage. The proof of coverage includes you, your spouse, and all your dependents covered by the plan for each month of the year. Form 1095 was very difficult to create and for the past number of years, the IRS has granted delays to health insurance providers issuing the form because of the complexity required to create it.
The form is used for two reasons:
What you need to know
Do not wait for this form: Remember, you no longer need Form 1095 to file your tax return if you do not have health insurance or you receive your health insurance through your employer.
Wait for the form if: You think you may qualify for the health insurance Premium Tax Credit and you purchase your health insurance through the Marketplace (Form 1095-A).
So for most taxpayers the answer is clear. Stop waiting for Form 1095 and proceed with tax filing for 2019.
* Marketplace. This refers to the Health Insurance Marketplace set up by the federal government and many states to offer individuals, families and small businesses health insurance options that comply with the 2010 Affordable Care Act.
As always, feel free to pass this Tip along to friends, and reach out if you need help with your personal tax and finance situation.