Difference between 1095A and 1095B
The 1095A and 1095B forms are crucial documents for individuals who received health insurance coverage through the Affordable Care Act (ACA) in the United States. These forms serve as proof of health coverage and are essential for taxpayers to determine their eligibility for the premium tax credit. Although they share the same purpose, there are significant differences between the two forms that taxpayers should be aware of.
1095A Form
The 1095A form is issued to individuals who obtained health insurance through a government marketplace, such as HealthCare.gov. This form provides detailed information about the coverage provided to the taxpayer, including the coverage dates, the premiums paid, and any subsidies received. The 1095A form is divided into three sections: the marketplace section, the employer section, and the individual section.
The marketplace section contains information about the insurance plan purchased through the marketplace, including the monthly premium, the amount of subsidies received, and the coverage dates. The employer section is blank for 1095A forms, as they are not applicable to employer-provided coverage. The individual section includes information about the taxpayer’s household, such as the number of people enrolled in the plan and any exemptions from the individual mandate.
1095B Form
The 1095B form is issued to individuals who received health insurance coverage through an employer. This form provides information about the coverage provided by the employer, including the coverage dates and the type of coverage. The 1095B form is divided into two sections: the employer section and the employee section.
The employer section contains information about the employer’s health plan, such as the plan name, the coverage dates, and the type of coverage provided. The employee section includes information about the employee’s enrollment in the plan, such as the coverage dates and the premiums paid. Unlike the 1095A form, the 1095B form does not provide details about subsidies or premium tax credits.
Key Differences
The primary difference between the 1095A and 1095B forms lies in the source of the health insurance coverage. The 1095A form is used for coverage obtained through a government marketplace, while the 1095B form is used for employer-provided coverage. Other key differences include:
– Information Provided: The 1095A form provides more detailed information about subsidies and premiums, while the 1095B form focuses on coverage details provided by the employer.
– Eligibility for Premium Tax Credit: Taxpayers who received subsidies through the marketplace must use the 1095A form to claim the premium tax credit on their tax return. Those who received employer-provided coverage may not be eligible for the premium tax credit.
– Purpose: The 1095A form is primarily used for verifying eligibility for the premium tax credit, while the 1095B form is used for tax reporting purposes.
Understanding the differences between the 1095A and 1095B forms is essential for taxpayers to ensure they are providing accurate information on their tax returns and to avoid potential penalties for failing to comply with the ACA’s individual mandate.
