From the Desk of Michael T. McCormick
Extensions and What to Do if You Get a Corrected or Voided Form 1095-A
With the deadline coming up Monday I often get asked about extensions. Extensions can often be a very good thing. They allow you additional time to get your documents in order, insure that you do not receive a post filing correction of a reporting form like I am seeing with amended healthcare forms discussed below and perhaps most importantly, extensions can reduce your audit risk at the higher income levels. Keep in mind extensions are not an extension to pay but rather an extension to file. If you think you will owe tax with your return you need to make a payment with your extension request.
If you or anyone in your household enrolled in a health plan through the Health Insurance Marketplace in 2015, you should have received a Form 1095-A, Health Insurance Marketplace Statement, from the Marketplace. You will use the information on the form to claim the premium tax credit if you’re eligible, to reconcile advance payments of the premium tax credit, or both, when filing your tax return.
Some taxpayers may receive a corrected or voided Form 1095-A because the information on the initial form was incorrect or incomplete. To determine if this is a corrected or voided form, look at the top of the form to see if either of those boxes is checked. Alternatively, you might receive a letter from the Marketplace indicating that you should disregard your Form 1095-A, which means your original Form 1095-A has been voided.
Corrected Form 1095-A
A corrected form generally indicates you previously received a Form 1095-A containing one or more errors.
• If you have not yet filed your tax return, you should use this new form when completing your tax return.
• If you have already filed your tax return, you will need to determine the effect the changes to your form might have on your return. Some changes – such as a corrected address – may not affect your tax return or require any action on your part, while others – such as a change in your monthly premium amount – might. Compare the corrected Form 1095-A to the original form to determine the nature of the change. For a detailed list of these changes, see Corrected or Voided Form 1095-A. This information can help you assess whether you should file an amended tax return. If you are uncertain whether you should amend your tax return, you may want to consult with one of our tax professionals.
• If you believe the information on your corrected Form 1095-A is incorrect or you have question about the form, you should contact your Marketplace.
Voided Form 1095-A
A voided form – or letter stating your form was voided – generally indicates you previously received a Form 1095-A that was issued in error. This may happen if you did not complete enrollment in Marketplace coverage. The voided Form 1095-A – as the well as the previously received Form 1095-A – should not be used to file your tax return.
• If you receive a voided Form 1095-A after you have already filed your tax return and claimed the premium tax credit using the original Form 1095-A that the Marketplace sent in error, you should file an amended return.
• If you have not yet filed your tax return, don’t use the information on the voided or on the previously received Form 1095-A to figure a premium tax credit on Form 8962.
• If you had coverage through the Marketplace and you believe they should not have voided your form, you should contact your Marketplace immediately to receive an accurate Form 1095-A.
In addition to the Amendments and corrections coming from the Healthcare Marketplace many investment firms send corrected or amended forms that may require an amended tax return for those who file early. If you receive one of these corrected forms, you should make sure you amend your return to avoid a love letter from IRS advising of an error on your return.