The 1095 Form, Taxes, and Individual Health Insurance: A Match Made in (Paperwork) Heaven

Ah, tax season—when we trade our snow shovels for calculators and every mailbox visit feels like a lottery draw, except instead of money, we get… forms. If you’ve got individual health insurance, there’s one form you can’t escape: the 1095. It starts the third week in January. But don’t worry! Suzie from Wenatchee Insurance has seen it all, and with her knack for breaking things down (and a good sense of humor), she’s here to help you understand how your health insurance and taxes go hand-in-hand.

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What Is the Mysterious 1095 Form?

The 1095 form is like the awkward cousin of the W-2. It doesn’t hold the keys to your refund, but it’s crucial for showing Uncle Sam you had health insurance last year. Think of it as your golden ticket to avoid paying the “Individual Shared Responsibility Payment” (aka the we-didn’t-see-your-coverage penalty).

If you bought health insurance through the Washington Healthplanfinder, you’ll likely receive a 1095-A. If your coverage came directly from a private insurer, you might get a 1095-B. If you received Apple Health then you may be looking at a 1095-B form. Either way, they both scream, “Proof I’m covered!”

Please note for Apple Health and people with a 1095-B form, the IRS does not require the form.

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What Do You Actually Do with the 1095 Form?

Suzie will tell you straight: Don’t panic. When the form arrives, here’s your action plan:

1. Check it for Errors
   Suzie swears by the two-minute error check. Are your name, address, and Social Security number correct? Is the coverage period accurate? If you spot a mistake, reach out to your insurance provider ASAP.
2. File It with Your Taxes
   The IRS doesn’t need you to send in the form, but keep it handy. Your tax software or accountant might ask for it to confirm your coverage.
3. Double-Check Tax Credits
   If you received premium tax credits (yay, lower premiums!), the 1095-A is your BFF for reconciling them on Form 8962. Suzie’s advice? Don’t skip this step—it could mean the difference between a sweet refund and an awkward bill.

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How Does Individual Health Insurance Affect Your Taxes?

Suzie often says, “Health insurance and taxes are like peanut butter and jelly: a weird combo, but they work.” Here’s how:

1. Tax Credits
   If you qualified for tax credits through the Marketplace, your 1095-A shows how much the government chipped in. If your income changed during the year and you didn’t update the Marketplace, you might owe (or get back!) some of that credit.
2. Penalties (Not So Much Anymore)
   Suzie says the big bad penalty is mostly a thing of the past, but some states (like California and New Jersey) still have individual mandates. If you live in one of these, your 1095 form is your get-out-of-jail-free card.
3. Self-Employed Deductions
   Here’s a silver lining: If you’re self-employed, you might be able to deduct your health insurance premiums. That’s right—your individual plan could save you money on taxes.

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Suzie’s Top Tip for Stress-Free Tax Season

Suzie’s golden rule: Organize early, relax later. Don’t let your 1095 form live under a pile of junk mail until April 14th. As soon as it arrives, add it to your tax folder—or, as Suzie calls it, “The Box of Financial Doom.”

If you have lost your 1095 or don’t have a printer then stop in. We do print copies for our clients.

And if you’re confused about your plan, tax credits, or which 1095 form you should expect, don’t hesitate to call Wenatchee Insurance. Suzie and Matt specialize in turning health insurance headaches into manageable to-dos.

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When in Doubt, Ask for Help

Taxes are complicated, health insurance is complicated, and when you combine the two? Let’s just say Suzie has seen some impressive forehead wrinkles from her clients. But that’s why Wenatchee Insurance is here—to make things simple, funny, and as painless as possible.

When you have a plan from the Healthplanfinder then you are required to file your taxes every year.

You can file taxes for Free.

The Washington State Department of Revenue has a list of assistors.

So, grab that 1095 form, pour yourself a cup of coffee (or something stronger), and tackle tax season like a champ.

.If you can’t find it then stop in and we will be able to print one out or tell you if you don’t need to include your 1095 form.

Topics: health insurance, tax document, 1095, apple health, Molina, Ambetter, Community Health, Suzie,  Chelan County, Okanogan, Grant County, Douglas County, 509, Leavenworth, Quincy, Cashmere, Entiat,