New Tax Forms Might Surprise Tax Payers

There are new health insurance tax forms this year. Taxpayers might be surprised to receive a 1095-B or 1095-C this year after e-filing. If a taxpayer has already e-filed their return, there is a process to report the changes.

Last year the new form 1095-A created a lot of confusion. Taxpayers were unaware of how important this form is. The government struggled to accurately report the right information. This form is critical to health connector residents who are receiving subsidized health insurance.

An omitted or corrected 1095-A must be submitted to the IRS with form 1040-X. This form does not affect your state return. If an extra refund is due, a check will be mailed out in a few moths. If this additional information requires a payment, it is important to send in the money before the filing deadline. Doing so will avoid late payment penalties.

This year there are two new health insurance forms, 1095-B and 1095-C. These forms are sent to taxpayers who have insurance through their employment or have bought private insurance on their own. Unlike 1095-A, 1095-B and 1095-C are supporting documents for a taxpayer to retain with their tax papers. The information does not change a state or federal return.

The MA HC form will continue to be sent as usual to MA residents with insurance.

Let’s conclude that health insurance has become an essential tax item.