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How to Correct Errors on Form 1095-A

Importance of Accurate Information​

Form 1095-A, the Health Insurance Marketplace Statement, plays a pivotal role in determining your premium tax credit and ensuring the accuracy of your tax return. Inaccuracies on this form can lead to significant financial and legal repercussions. According to IRS data, approximately 15% of Form 1095-A submissions contain errors, leading to delays in tax processing and increased instances of repayment requests.

Consider the case of Jane Doe, who received her Form 1095-A with incorrect premium amounts. Initially, Jane was overcredited and had to repay $1,200 when filing her taxes. The process not only caused financial strain but also significant stress as she navigated multiple communications with the IRS and the Health Insurance Marketplace to rectify the mistake.

Another scenario involves Mark Smith, who had discrepancies in his coverage dates. Mark was flagged for incorrect information, resulting in an audit that required him to provide extensive documentation to prove his actual coverage period. This not only delayed his tax refund but also forced him to take time off work to address the issue, highlighting the personal and professional impact of such errors.

These examples underscore the critical importance of accurate information on Form 1095-A. Precise data entry ensures that individuals receive the correct premium tax credits, avoid unnecessary repayments, and remain compliant with IRS regulations. Furthermore, minimizing errors helps reduce the administrative burden on taxpayers, allowing for a smoother and more efficient tax filing experience.

Statistics also reveal that accurate Form 1095-A submissions can expedite tax refunds by up to 30%, as there are fewer discrepancies to resolve. By diligently reviewing and verifying the information on this form, taxpayers can prevent common issues such as incorrect premium amounts, mismatched coverage dates, and erroneous household information, thereby safeguarding their financial well-being and ensuring a hassle-free interaction with tax authorities.

Common Errors on Form 1095-A​

Certain errors are common on Form 1095-A. Here’s a list of potential issues to watch for:

Error TypeExamples
Incorrect Coverage DatesCoverage start or end dates that do not match your actual coverage period.
Incorrect Premium AmountsMonthly premium amounts that differ from what you actually paid.
Incorrect Advance Payment of PTCDiscrepancies in the reported advance payments of the premium tax credit.
Household Information ErrorsMistakes in the names, Social Security Numbers, or dates of birth of covered individuals.

How to Identify Errors​

Review Your Form 1095-A​

Carefully review all the information on Form 1095-A, including:

  • Personal Information: Ensure your name, Social Security Number, and address are correct.
  • Coverage Information: Check that the start and end dates of your coverage are accurate.
  • Premium Information: Verify the monthly premium amounts and advance payment amounts.

Compare with Your Records​

Compare the information on Form 1095-A with your own records, such as:

  • Insurance Statements: Use monthly statements from your insurance provider.
  • Marketplace Notices: Review any notices from the Health Insurance Marketplace.
  • Receipts and Bills: Check your receipts and bills for premium payments.

How to Correct Errors​

Contact the Health Insurance Marketplace​

If you find an error on Form 1095-A, contact the Health Insurance Marketplace to request a corrected form. Here’s how to do it:

  1. Gather Documentation: Collect any documents that support the correct information (e.g., insurance statements, receipts).
  2. Call the Marketplace: Contact the Marketplace Call Center at 1-800-318-2596.
  3. Explain the Error: Clearly explain the error and provide the correct information.
  4. Submit Documentation: If required, submit supporting documentation to validate your claim.
  5. Request a Corrected Form: Ask for a corrected Form 1095-A to be sent to you.

Correcting Errors on Your Tax Return​

If you have already filed your tax return and later receive a corrected Form 1095-A, it is important to determine whether the adjustments impact your tax calculations. File an amended return using Form 1040-X if the corrections result in a significant change in your premium tax credit or overall tax liability.

Follow these steps:

  1. Review the Corrected Information: Compare the corrected Form 1095-A with your originally filed return to identify any discrepancies in premium amounts or tax credit calculations.
  2. Determine the Impact: Assess whether the differences affect your tax refund or result in additional tax liability. If the changes are substantial, it is advisable to file an amended return.
  3. Gather Documentation: Collect all supporting documents, including the corrected Form 1095-A, previous statements, receipts, and any other relevant correspondence.
  4. Complete Form 1040-X: Carefully fill out Form 1040-X, providing clear explanations for each change and how the corrections alter your original return.
  5. Submit Your Amended Return: Send Form 1040-X along with the supporting documents to the IRS. Be aware that filing an amended return may delay the processing of your refund, with wait times sometimes extending several extra weeks or even months.
  6. Track the Process: Monitor the status of your amended return and be prepared for follow-up from the IRS if additional information is required.

For example, if you originally reported premium tax credits based on incorrect coverage dates or premium amounts, and then receive a corrected Form 1095-A that significantly alters these values, filing Form 1040-X will help adjust your tax return to reflect the accurate information. If you have any uncertainty about this process, consider seeking guidance from a tax professional.

Detailed Examples of Correcting Errors​

Example 1: Incorrect Coverage Dates​

Scenario​

  • Original Form: Shows coverage starting in March, but you were actually covered starting in January.
  • Correction: Contact the Marketplace to correct the start date to January.

Steps to Correct​

  1. Identify the Error: Review the coverage dates on Form 1095-A.
  2. Gather Evidence: Collect insurance statements showing coverage starting in January.
  3. Contact the Marketplace: Call the Marketplace and request a correction.
  4. Submit Documentation: Provide copies of the insurance statements if needed.
  5. Receive Corrected Form: Ensure you receive a corrected Form 1095-A reflecting the correct dates.

Example 2: Incorrect Premium Amounts​

Scenario​

  • Original Form: Reports $400 per month in premiums, but you paid $450 per month.
  • Correction: Contact the Marketplace to correct the premium amounts.

Steps to Correct​

  1. Identify the Error: Review the monthly premium amounts on Form 1095-A.
  2. Gather Evidence: Collect bills or receipts showing you paid $450 per month.
  3. Contact the Marketplace: Call the Marketplace and request a correction.
  4. Submit Documentation: Provide copies of the bills or receipts if needed.
  5. Receive Corrected Form: Ensure you receive a corrected Form 1095-A reflecting the correct premium amounts.

Understanding Your Stress and Seeking Support​

Correcting errors on Form 1095-A can be a daunting and stressful process. It's completely normal to feel overwhelmed when dealing with tax forms and ensuring all information is accurate. Remember that you are not alone in this journey. Many individuals face similar challenges, and there are resources and professionals available to help you navigate through the necessary steps.

Take things one step at a time, and don't hesitate to reach out for assistance if you need it. Whether it's contacting the Health Insurance Marketplace, consulting with a tax professional, or seeking support from friends and family, leaning on others can help alleviate some of the stress associated with correcting your tax forms.

Approaching the task with patience and a clear plan can make the process more manageable. By acknowledging your feelings and seeking the support you need, you can ensure that correcting your Form 1095-A becomes a less overwhelming experience.

Tips for Ensuring Accurate Information​

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Regularly Review Statements: Check your insurance statements regularly to ensure they match the information on Form 1095-A.

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Keep Detailed Records: Maintain detailed records of your premium payments and any correspondence with the Health Insurance Marketplace.

Glossary of Terms​

Premium Tax Credit
A refundable credit that helps eligible individuals and families cover the premiums for their health insurance purchased through the Health Insurance Marketplace.

Advance Payments of the Premium Tax Credit (APTC)
Payments made directly to your insurance company to lower your monthly insurance premium based on the estimated annual income you provided when applying for coverage.

Household Members
Individuals considered part of your household for determining eligibility for premium tax credits, typically including yourself, your spouse, and dependents.

Form 1095-A
The Health Insurance Marketplace Statement that provides information about your health coverage and is used to calculate the premium tax credit on your tax return.

Coverage Period
The timeframe during which your health insurance policy is active and provides coverage.

Amended Return (Form 1040-X)
A tax return filed to correct errors on a previously submitted tax return, such as those resulting from changes to Form 1095-A.

Additional Resources​

Conclusion​

Ensuring the accuracy of Form 1095-A is essential for calculating your premium tax credit correctly and avoiding repayment. By carefully reviewing your form, comparing it with your records, and promptly correcting any errors, you can ensure compliance with IRS requirements and maximize your benefits.

Stay informed, keep accurate records, and seek professional assistance if needed to navigate the complexities of Form 1095-A and the Premium Tax Credit. Accurate reporting helps avoid potential issues and ensures you receive the correct financial assistance for your health insurance coverage.

If you have any questions or need further assistance, do not hesitate to seek help from a tax professional. Accurate completion of these forms is crucial for proper tax reporting and compliance with IRS regulations.

Form 1095-A Verification Checklist​

Personal Information​

  • Full legal name matches Social Security card
  • Social Security Number is correct
  • Current mailing address is accurate
  • Date of birth matches official records
  • Filing status is correctly indicated

Coverage Details​

  • Policy start date aligns with enrollment
  • Policy end date matches termination (if applicable)
  • Coverage months are accurately marked
  • No gaps in coverage are incorrectly shown
  • Second lowest cost Silver plan premium is listed for each covered month

Household Information​

  • All covered family members are listed
  • Names spelled correctly for each person
  • Correct Social Security Numbers for dependents
  • Accurate birth dates for all listed individuals
  • No missing family members who were covered

Premium Information​

  • Monthly premium amounts match statements
  • Total premium calculation is correct
  • Advanced Premium Tax Credit amounts are accurate
  • Monthly payment records correspond to listed amounts
  • No duplicate premium entries exist

Insurance Provider Details​

  • Correct insurance company name
  • Accurate policy number
  • HIOS ID matches your plan
  • Marketplace-assigned policy number is correct
  • Coverage state is accurately listed

Document Verification​

  • All pages are present and legible
  • Form is marked as original or corrected appropriately
  • Tax year indicated is correct
  • Marketplace name matches where you enrolled
  • Form contains no missing fields