Tax Tips — March 17, 2022

How Do I Report Healthcare Info on My Taxes?

by Susannah Hornback

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How Do I Report Healthcare Info on My Taxes?

Since filing your taxes means settling your financial information for the year and making sure your taxes are covered, it makes sense that healthcare and medical expenses would come up while you’re filing.

But what exactly do you have to report? Each situation is different, but most taxpayers will at least get Forms 1095-A, 1095-B, or 1095-C.

Let’s take a look at each and see what is reported and which helps you file your tax return.

If you had healthcare through a government-sponsored Marketplace, you’ll get Form 1095-A

Form 1095-A is provided to the IRS and taxpayers by a Health Insurance Marketplace (HIM); it reports information on everyone covered by a qualified health plan purchased through a HIM. You will use the information on this form to either claim the Premium Tax Credit or reconcile the credit on your return if you received any advance credit payments during the year.

What to do with your 1095-A: When you file with 1040.com, you’ll be asked about coverage through a HIM, and our walkthrough interview will help you report your 1095-A information on Form 8962 to calculate whether you’ll receive or reconcile your Premium Tax Credit. You’ll definitely want to keep this form handy for when you sit down to file.

If you had healthcare coverage through work or paid for it directly, you’ll get Form 1095-B or 1095-C

Form 1095-B simply reports which months you and your household had minimum essential health coverage in the past year.

This info would have been crucial information when health insurance was a requirement for all taxpayers. However, now that the penalty for not having minimum essential coverage has been reduced to $0, your 1095-B is basically just a list of details you won’t need for your taxes (but are good for your personal records).

What to do with Form 1095-B: If you file online with 1040.com, the walkthrough will simply ask if you had healthcare coverage. Any further details provided by your Form 1095-B are irrelevant, so don’t worry about finding a place on your tax return to report them.

If your employer is large enough, you’ll receive a Form 1095-C

Similar to the Form 1095-B, your Form 1095-C includes healthcare coverage details for health insurance provided by a larger employer.

What to do with Form 1095-C: You don’t need the details provided by a 1095-C and there is nowhere on your tax return to report them. When you file with 1040.com, simply check the box to say that you had healthcare and keep your Form 1095-C for your records.

If your medical expenses were more than 7.5% of your AGI, report those expenses for a deduction

Medical expenses are deductible if they exceed a percentage of your Adjusted Gross Income (AGI). Check out our Tax Guide article for more on medical expense deductions.

Feel good about healthcare coverage with 1040.com

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