What is the 1095-A?

Any individual who bought a health care plan through the can expect to find a , also known as a Form , in their mailbox by January 31,2015. Many Americans have chosen to take a premium in advance, which will help subsidize their monthly . This credit amount will be listed on the Form 1095-A, and will need to be reported on (Premium Tax Credit), in which taxpayers calculate their premium tax credit. This form is to be filed along with the 2014 .

There are three steps to determining your premium tax credit amount:

  • First, you have to figure out the actual premium tax credit for the year in relation to your income and family size.
  • Enter the advanced tax credit amount received each month through 2014.
  • Subtract the credit amount received in advance from the actual allotted credit.

After completing the three steps above, you'll encounter one of two scenarios as a result. Either you will be entitled to a refundable credit if your actual calculated credit is greater than the total advance credit you received , or you will owe more tax if you received a larger advance credit that you calculated.