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How Does IRS Verify Health Insurance Coverage

Under the Tax Cuts and Jobs Act, approved December 22, 2017, the amount of the individual shared responsibility payment is lowered to zero for months beginning after December 31, 2018.

Starting in the tax year 2019, Form 1040 will not have the “full-year health care coverage or exempt” box, and Form 8965, Health Coverage Exemptions, will no longer be utilized. You require not make a shared responsibility payment or file Form 8965, Health Coverage Exemptions, with your tax return if you do not have minimum essential coverage for part or all of 2019.

You may receive several information forms you can use to complete your tax return and keep with your tax records.

The information forms are:

• Form 1095-A, Health Insurance Marketplace Statement
• Form 1095-B, Health Coverage
• Form 1095-C, Employer-Provided Health Insurance Offer and Coverage

If you or your family received the premium tax credit’s early payment payments through the Health Insurance Marketplace, you need to complete Form 8962, Premium Tax Credit, with your return. You will receive Form 1095-A, Health Insurance Marketplace Statement, which offers you information regarding your healthcare coverage. You ought to wait to file your income tax return until you receive that form. Employ the information from Form 1095-A to complete Form 8962 to reconcile advance payments of the premium tax credit or – if you are qualified– to claim the premium tax credit on your tax return. Filing your return without reconciling your advance payments will delay your refund and impact your future advance credit payments.

Health insurance providers – for instance, health insurance companies – will send Form 1095-B to customers they cover, with information about who was covered and when. Some employers will send Form 1095-C to individual employees, with information concerning what coverage the employer offered.

The IRS has posted different questions and answers regarding the Forms 1095-B and 1095-C. The questions and answers elucidate who should expect to receive the forms, how they can be used, and how to file with or without the forms.

You should not attach any of these forms to your health insurance tax return form.

Free File and e-filing Help Shorten Tax Time

All taxpayers reporting coverage, making an individual shared responsibility payment, claiming a health coverage exemption, or claiming the premium tax credit should contemplate filing your tax return electronically. Filing a tax return electronically is the easiest way to submit a complete and accurate tax return as it guides you through the process and does all the math for you.

Electronic Filing options consist of IRS Free File, free Volunteer Assistance, commercial software, and professional assistance.

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Resources and References:

• Form 1095 B
• Advanced Premium Tax Credit