If you purchased health insurance through HealthCare.gov or a state Health Insurance Marketplace, the IRS requires you to report information from your Marketplace policy on your tax return.
This information is needed to determine whether you received the correct amount of Advance Premium Tax Credit (APTC) during the year.
The Advance Premium Tax Credit is a subsidy that helps eligible taxpayers lower their monthly health insurance premiums by paying part of the cost in advance. When you file your tax return, the IRS requires you to compare the amount of advance credit you received with the amount you're actually entitled to based on your final household income and family information.
This process is called reconciling the Premium Tax Credit and is completed using Form 1095-A, Health Insurance Marketplace Statement, and Form 8962, Premium Tax Credit.
Why Does the IRS Need This Information?
The IRS uses Marketplace coverage information to determine whether:
- You received the correct amount of Advance Premium Tax Credit.
- You're entitled to an additional Premium Tax Credit.
- You must repay some or all of the Advance Premium Tax Credit you received during the year.
For example:
- If your actual income was lower than expected, you may qualify for an additional credit, which could increase your refund or reduce the tax you owe.
- If your actual income was higher than expected, you may need to repay part of the advance credit.
Do I Need to Enter Health Insurance Information If I Had Employer Coverage?
Generally, no.
If you received Form 1095-B or Form 1095-C, you typically do not need to enter that information into your federal tax return. These forms are primarily for your records.
However, if you received Form 1095-A from the Marketplace, you must enter that information so the Premium Tax Credit can be calculated correctly.
How Do I Answer the Question in the Program?
If you purchased insurance through HealthCare.gov or a state Marketplace:
- Go to Health Insurance.
- Answer Yes when asked whether you, your spouse, or a dependent had insurance under the Affordable Care Act.
- Enter the information from Form 1095-A when prompted.
- Answer any additional questions regarding household members, coverage, and Premium Tax Credit allocation.
The program will automatically complete Form 8962 and calculate any additional credit or repayment amount.
2026 Tax Year Guidance
For tax year 2026 returns filed in 2027, there is no federal requirement to report whether you had health insurance coverage. However, taxpayers who received Marketplace coverage and Form 1095-A must still enter that information to reconcile any Advance Premium Tax Credit payments received during the year.
Failing to enter Form 1095-A information may cause your return to be incomplete and could delay IRS processing.