The wrong 1095-A forms went out to about 800,000. This form is used to adjust cost assistance on taxes. The wrong forms had correct subsidy amounts, but the wrong calculations.
Here is What you Need to Know if you got the Wrong 1095-A Form from the Marketplace
Some people who had coverage through HealthCare.Gov received a 1095-A form with one incorrect calculation on it. The “second lowest cost silver plan” on Part III column B used 2015 plan prices instead of 2014 prices. Other information on the form is correct. So any errors will be slight.
You can use the Second Lowest Cost Silver Plan tax tool to help you calculate amounts if you didn’t get the correct 1095. However, we suggest following the instructions below before filing your 8962 Premium Tax Credit form using an inaccurate 1095. Reporting the incorrect amounts on your 1095 could lead to you being off on your calculations, and getting or owing more Tax Credits then appropriate.
If you Already Filed an Incorrect 1095
If you already filed your 1040 and 8962 form using an incorrect 1095, the IRS has announced that it will not affect your tax return negatively.
- If you filed early based on the bad form and received a larger premium tax credit than you should have, you can keep it.
- If you haven’t filed your form yet, you are being asked to wait until you get the correct form.
- You cannot be punished in any way other than the IRS withholding money you would get from a return for filing ObamaCare related taxes incorrectly.
- If you already filed and want to request to be waived from any fees associated with filling early you can amend your return with the correct information and/or file form 2210 Underpayment of Estimated Tax by Individuals, Estates, and Trusts.
Should I Re-File?
“A tax filer is likely to benefit from amending if the 2015 monthly premium for his or her second lowest cost Silver plan (or “benchmark” plan) is less than the 2014 premium. For example, if a filer’s original form lists a benchmark premium of $100 and her updated form lists a premium of $200, it may be in her interest to refile. Individuals may want to consult with their tax preparers to determine if they would benefit from filing amended returns.” – Treasury Department
The closer you are to one of the income levels below, the more likely it is that the slight variation caused by the Second Lowest Cost Silver plan will be impactful.
Tax Credit Repayment Levels
|Income % of FPL
|Less than 200% FPL
|At least 200% FPL
but less than 300%
|At least 300% FPL
but less than 400%
|If your year end income exceeds 400% FPL, you will have to return the total amount of Advanced Premium Tax Credits you received.If you make too little to qualify for subsidies (less 100% FPL), then you owe NOTHING.That being said, if you know you are going to price out of cost assistance, make sure to update your Marketplace account. You may become eligible for a free or low-cost Medicaid plan if your state expanded Medicaid.
The Treasury department and IRS recently confirmed this applies to both the federal exchange HealthCare.Gov and the state exchanges.. Learn more refiling due to a wrong 1095-A.
Official Statement from CMS
Your 1095-A form should have arrived in your mailbox in February. Most consumers can also download a copy of their 1095-A through their HealthCare.gov account.
We have been urging consumers to check the information on their forms – such as the number of people in your household – for accuracy. People who find errors on their form can contact the Marketplace Call Center at 1-800-318-2596 to find out how to request a corrected form.
About 20 percent of the tax filers who had Federally-facilitated Marketplace coverage in 2014 and used tax credits to lower their premium costs – about 800,000 (< 1% of total tax filers) – will soon receive an updated Form 1095-A because the original version issued listed an incorrect benchmark plan premium amount.
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.
It’s important to note that this issue does not affect the majority of Marketplace consumers and only affects people who signed up through one of the 37 states using HealthCare.gov. About 80 percent of Marketplace consumers who received a 1095-A from the federal Marketplace do not have affected forms and should go ahead and file their annual tax return. Additionally, this issue does not mean that consumers received the incorrect amount of tax credit throughout the year.
It’s also important to note that this does not affect the vast majority of tax filers who will just need to check a box on their tax return to indicate that they had health coverage in 2014 either through their employer, Medicare, Medicaid, veterans care, or other qualified health coverage programs. – CMS
Marketplace consumers concerned about the status of their 1095-A forms should take the following actions:
Information from CMS
- You can find out if you are affected by logging in to your account at HealthCare.gov. You will see a notice message that will let you know if your form was or was not affected. A majority of tax filers with Marketplace coverage through HealthCare.gov that received a 1095-A– about 80 percent – will find that their form was not affected by this issue and will be able to file their taxes with their current form.
- Wait to file if your form was affected. It’s best to wait to file your tax return until you receive your corrected 1095-A Form from the Marketplaces or download the corrected form by logging into your account. New forms are being sent from the Marketplace beginning in early March. When your corrected form is ready, you’ll also receive a message through your Marketplace account on HealthCare.gov.
- If you need to file now, use the Healthcare.gov tool. If you can’t wait, and want to find the correct amount of the second lowest cost Silver plan that applied to your household in 2014, you have 2 options: 1) You can use this tool to find that amount, or 2) You can call the Marketplace Call Center at 1-800-318-2596 (TTY: 1-855-889-4325) and they can help.