You may not know that in my past life, I was a Canadian CPA. The months of February to April were filled with non-stop work, deadlines and stressed clients trying to understand what information to provide for their taxes. Most of us, being creatures of habit, rely on what we’ve provided to our CPAs year after year.
If you had been on an ACA health insurance plan in the past – whether through an employer or purchased off the Marketplace, you would be familiar with Form 1095 – Health Insurance Marketplace Statement. During the term of President Obama, this form was required to be filed with your tax return to show that you have coverage. People who were without health insurance were penalized.
This penalty for failing to enroll in an ACA-compliant healthcare plan was removed by President Trump beginning January 1, 2019. Strangely, the requirement for issuing Form 1095A where there are ACA-compliant plans was never removed. Yet, the IRS’ response to the question “Must I wait to file until I receive these forms?” their reply is: “while the information on these forms may assist in preparing a return, they are not required. Individual taxpayers should not wait for these forms and file their returns as they normally would.”
Your Philadelphia American health insurance coverage is not an ACA-compliant plan, so you will not be receiving Form 1095 for your taxes. Again, I want to reiterate that you are not subject to penalties or any negative tax consequences because of this!
If your CPA or tax preparer asks for this form, tell them you won’t be receiving it and they can proceed with the preparation of your return.
If you are a business owner, please speak to your tax preparer to discuss if there are any tax advantages that can be taken with respect to the premiums you paid during the year.
Disclaimer: Gordon Health Group, LLC does not provide legal or tax advice. We encourage clients to consult their Accountant, Attorney or CPA for tax matters.