Difference between Form 1095-A and Form 1095-B
Understanding the difference between Form 1095-A and Form 1095-B is crucial for individuals who receive health insurance coverage through the Affordable Care Act (ACA). Both forms are used to report health insurance information to the IRS, but they serve different purposes and are issued to different individuals.
Form 1095-A
Form 1095-A is issued to individuals who obtained health insurance through the Health Insurance Marketplace. This form provides detailed information about the coverage provided, including the monthly premiums, the amount of advance premium tax credits, and any cost-sharing reductions. Individuals who receive Form 1095-A are required to use it to reconcile their advance premium tax credits on their tax returns.
Form 1095-B
On the other hand, Form 1095-B is issued to individuals who have health insurance coverage through an employer, a government program, or another source that is not the Health Insurance Marketplace. This form provides information about the coverage provided, such as the type of coverage and the coverage period. Individuals who receive Form 1095-B may need to use it to verify their coverage when filing their tax returns.
Key Differences
The primary difference between Form 1095-A and Form 1095-B lies in the source of the health insurance coverage. Form 1095-A is for Marketplace coverage, while Form 1095-B is for coverage from other sources. Additionally, the information provided on each form varies, with Form 1095-A containing more detailed information about the coverage and tax credits.
Reconciliation of Advance Premium Tax Credits
One important distinction between the two forms is the reconciliation of advance premium tax credits. Individuals who received advance premium tax credits through the Marketplace must reconcile these credits on their tax returns using Form 1095-A. If the amount of advance premium tax credits received was different from the amount of credit calculated on their tax return, they may be required to repay some or all of the excess credit.
Conclusion
In conclusion, the difference between Form 1095-A and Form 1095-B is essential to understand for individuals receiving health insurance coverage under the ACA. Both forms serve the purpose of reporting health insurance information to the IRS, but they are issued to different individuals and contain different information. By familiarizing themselves with the specific details of each form, individuals can ensure they accurately report their health insurance coverage on their tax returns.
