Medicare Premiums Tax Deductible

As tax season approaches, it is important to remember that Marketplace health insurance affects taxes.  If anyone in your household had a Marketplace plan in 2017, you should receive Form 1095-A in the mail.  This is a tax form used to reconcile advanced payments of premium tax credit.  You can expect the form to arrive no later than mid-February, or it may also be available in your account.

Make sure to double check all your information on the 1095-A is correct.  If any part of the form is incorrect, you should contact the Marketplace Call Center.

Note: You must have your 1095-A before you file.  Don’t file your taxes until you have an accurate 1095-A.

The 1095-A form contains information about Marketplace plans anyone in your household had in 2017, including premiums paid and premium tax credits used.  You need to use the information from your 1095-A to fill out Form 8962 (Premium Tax Credit).  This is how you reconcile your premium tax credit or in other words, determine if there’s any discrepancy between the premium tax credit you used and the amount you qualified for.  Any difference will affect your refund or tax owed.

You need to submit Form 8962 when you file your federal income tax return.  However, you do not need to submit your 1095-A form.  Instead you should keep it with your other tax documents.  If you have questions about Form 1095-A or other tax issues, it is best to speak to a tax professional about your specific situation.

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