Affordable Care Act — What You Need To Know

Requirement to reconcile advance payments of the premium tax credit

The premium tax credit helps pay premiums for health insurance purchased from the Marketplace. Eligible individuals may have advance payments of the premium tax credit made on their behalf directly to the insurance company.

If you or a family member enrolled in health insurance through the Marketplace and advance payments of the premium tax credit were made to your insurance company to reduce your monthly premium payment, you must attach Form 8962 to your return to reconcile (compare) the advance payments with your premium tax credit for the year.

The Marketplace is required to send Form 1095-A by January 31, 2020, listing the advance payments and other information you need to complete Form 8962.

  1. You will need Form 1095-A from the Marketplace.

  2. Complete Form 8962 to claim the credit and to reconcile your advance credit payments.

  3. Include Form 8962 with your Form 1040, or Form 1040-SR, or Form 1040-NR. (Don’t include Form 1095-A.)

Health Coverage Reporting

If you or someone in your family was an employee in 2019, the employer may be required to send you a Form 1095-C. Part II of Form 1095-C shows whether your employer offered you health insurance coverage and, if so, information about the offer. You should receive Form 1095-C by early March2020. This information may be relevant if you purchased health insurance coverage for 2019 through the Health Insurance Marketplace and wish to claim the premium tax credit on Schedule 3, line 9. However, you do not need to wait to receive this form to file your return. You may rely on other information received from your employer. If you don’t wish to claim the premium tax credit for 2019, you don’t need the information in Part II of Form 1095-C. For more information on who is eligible for the premium tax credit, see the Instructions for Form 8962.