Perhaps 800,000 or More Form 1095-A Are Wrong
If you obtained health insurance through the federal or state exchanges, you may receive an email and phone call from the exchange in the next few days. There was a widespread error on Form 1095-A where the costs of the second-highest silver level plan premiums may have been prepared incorrectly. The errors on these forms can affect the amount of the premium tax credit calculations on your Form 1040 tax return this year.
The errors occurred on the part of the form that reports the premium cost of the second lowest silver level plan premiums. As these forms relate to the 2014 calendar year and accordingly, 2014 tax credit, this amount should have been the premium cost for the 2014 calendar year. However, some forms show the 2015 premium cost. Several other errors were also reported in California.
The government indicates that corrected forms will be out in early March. If you were affected, you will either need to wait for this form to be corrected, or you may be able to figure it out on your own or with the assistance of the marketplace call centers and online resources. If you are getting ready to send off your tax return and you received a premium tax credit in the health insurance exchanges, wait to see if you receive contact from the exchange and wait for corrected forms, if applicable, before finalizing your return.
Thanks to Kiely Strohmaier for this post.
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
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