Get your health coverage tax forms together

It is important to get all of your health care tax forms together before you file your taxes. If you were enrolled in coverage from different sources during 2018—like both insurance through the Health Connector and through a job—you will get different tax forms from those sources. See the chart below to see what forms you may get.

At a Glance: Health Care Tax Forms

If you enrolled in 2018 in… You will receive tax form… You will get this form from… You use it for…
a Health Connector or  ConnectorCare plan More info 1095-A the Health Connector your federal income tax return
1099-HC your health plan insurer your Massachusetts state income tax return
MassHealth coverage
Visit the MassHealth website for more information →
1095-B MassHealth your federal income tax return
1099-HC* More info MassHealth your Massachusetts state income tax return
insurance from a job with less than 50 full-time employees (small business) More info

 

1095-B your health plan insurer your federal income tax return
1099-HC your health plan insurer your Massachusetts state income tax return
insurance from a job with at least 50 full-time employees More info 1095-C your health plan insurer your federal income tax return
1099-HC your health plan insurer your Massachusetts state income tax return
a plan purchased directly from a health plan insurer 1099-HC your health plan insurer your Massachusetts state income tax return

Note: If you had coverage from another source, like Medicare, TRICARE, Veterans’ health program, some student health plans, or other type of Minimum Essential Coverage (MEC), you will likely get a 1099 and 1095 from that source.

About Form 1095-A, Health Insurance Marketplace Statement

Use your Form 1095-A for filing taxes for 2018

If you or your family were enrolled in a Health Connector or ConnectorCare plan for all or part of 2018, the Health Connector will mail you information about the coverage on Form 1095-A. You will get this form by early February. It is important that you do not complete your tax return before getting this form.

Your Form 1095-A has important information about the months you had health insurance coverage through the Health Connector, the cost of your monthly premiums, and any tax credit you received during the year.

Bring your Form 1095-A with you when you go to your tax preparer, or have it ready when you prepare your own returns. You must file a federal income tax return with the information from your Form 1095-A if you received an Advance Premium Tax Credit in 2018. If you don’t file, you won’t be able to get this tax credit again in the future. This includes members enrolled in ConnectorCare, even if you have very low income.

Questions and Answers about 1095-A

If you received an Advance Premium Tax Credit (this includes ConnectorCare), or plan to claim a premium tax credit, you’ll need the information from your Form 1095-A to fill out IRS Form 8962 when you file your federal tax return. This form helps the IRS make sure that you got the right amount of tax credit for health insurance in 2018. This is because the amount of tax credit you were given was based on your estimated income. If your actual income ended up being more than what you estimated, you may have to pay back some of the tax credit. Or, you could get a refund if your income was less than what you estimated.

Note: If you received an Advance Premium Tax Credit in 2018, or want to claim a premium tax credit for this year, you cannot file your taxes with form 1040 EZ.

You may also need to use your Form 1095-A if you had any gaps in coverage in 2018. If you didn’t have coverage for some months, you’ll need to fill out IRS Form 8965. This tells the IRS which months you had health insurance, and will help you figure out if you owe a tax penalty.

Learn even more about Form 1095-A, Health Insurance Marketplace Statement, at IRS.gov/aca →

You may need to file an amended federal income tax return if:

  • You filed your tax return before you got a Form 1095-A.
  • You got a corrected Form 1095-A but you used information from the previous Form 1095-A to file your tax return.

Click here for more information on how to file an amended return →

About Form MA 1099-HC

You will need this form to complete Schedule HC (for health care) when you file your 2018 Massachusetts personal income tax return, to show that you had health insurance. It may also show you other types of MassHealth coverage you had during 2018. Save these forms and any others you receive related to your health care with your important tax papers.  Bring it with you when you go to your tax preparer, or have it ready when you prepare your own returns.

Questions and Answers about Form 1099-HC

  • Form 1095-A is a federal tax document, while Form 1099-HC is a Massachusetts state tax document. Both forms report the months someone had health insurance the previous year.
  • Members who were enrolled in Health Connector or ConnectorCare plans in 2018 will receive a Form 1095-A and will use the information from their Form 1095-A to complete IRS Form 8962 (Advance Premium Tax Credit) of their federal income tax return. All family members and other individuals covered under the plan will be listed on a single Form 1095-A sent to the head of household.
  • Form 1095-A will not include information about a member’s enrollment in non-Health Connector insurance plans. Carriers and large employers will report coverage for federal purposes on Forms 1095-B and 1095-C, respectively.
  • Form MA 1099-HC, in contrast, is a Massachusetts Department of Revenue (DOR) document. It summarizes a resident’s health insurance enrollment in the previous year, and does not have any alternate A-B-C versions. Residents will use their 1099-HC to complete their state tax return.
  • Please note there is no Tax ID number on the 1099-HC.
  • MassHealth members seeking a copy of their 1099-HC form should contact MassHealth Customer Service Center at 1-800-841-2900, or TTY 1-800-497-4648 for people who are deaf, hard of hearing, or speech disabled.
  • Additional questions and answers about Form 1099-HC can be found on the Massachusetts Department of Revenue website.

 

Other Tax Forms You May Need

IRS Form 8962 (Premium Tax Credit)

What is Form 8962?

Form 8962 is used to reconcile any Advance Premium Tax Credit (APTC) that was paid to your insurer to help lower the cost of your monthly health insurance premium. This form is also used to check and see if you were eligible for APTC.

Who needs to use this form?

If you purchased insurance through the Health Connector in 2018 and you received an Advance Premium Tax Credit or ConnectorCare plan (note: all ConnectorCare plans include an Advance Premium Tax Credit), you will need to file a federal income tax return and include IRS Form 8962 when you file.  You will also file your return with Form 8962 if you didn’t get an Advance Premium Tax Credit during the year, but want to claim a Premium Tax Credit for the year. Form 8962 will help to determine if you qualify.

When you enrolled for your health coverage, you may have chosen:

  • To get the money from the credit during the year. If so, an amount was sent directly to your health insurance company, reducing your monthly premium cost. The amount is also known as an advance on the Premium Tax Credit (or an Advance Premium Tax Credit – APTC)
    OR
  • To get the money with your tax return. You may get additional money when you file your return through the Premium Tax Credit.

Regardless of which choice you made, Form 8962 will be used to figure out how much of the credit you will get or may have to pay back.

Where to find the form:

IRS website at https://www.irs.gov/uac/About-Form-8962

Questions and Answers about Form 8962

If you received APTC to lower your monthly premium costs that means you gave the Health Connector your best estimate of what your 2018 income would be when you signed up (you may have based this on your 2016 income). The APTC you qualified for in 2018 was based on that estimate. If your income for 2018 was more than your estimated income, you may have to pay back some or all of the money that lowered your monthly payments.

If you received APTC to lower your monthly premium costs that means you gave the Health Connector your best estimate of what your 2018 income would be when you signed up (maybe based on your 2016 income). The APTC you qualified for in 2018 was based on that estimate. If your income for 2018 was less than your estimated income, you may receive an extra credit on your tax return. You may also receive money back if you chose to apply less APTC to your monthly premium than you were eligible for.

If you chose not to use APTC in 2018 to lower your monthly premium costs, then you will get the credit with your 2018 tax return based on your 2018 income reported when you file your taxes. It will increase your refund or reduce the amount you owe.

IRS Form 8965 (Health Coverage Exemptions)

What is Form 8965?

This is a tax form that you may be required to file with your 2018 tax return if you didn’t have health insurance coverage for yourself (and anyone else listed on your tax return) for some or all of 2018, but you are claiming an exemption for any months you (or anyone else listed on your tax return) did not have coverage.

The Instructions to Form 8965 contain a Shared Responsibility Payment Worksheet that you can use to calculate any Shared Responsibility Payment you may owe if you (or anyone else listed on your tax return) did not have coverage for 3 or more months of 2018, and you are not claiming an exemption for some or any of that time.

The Affordable Care Act requires most Americans to have health insurance for 2018 or pay a penalty, or fee, for not having coverage. They may be able to receive a waiver from the penalty with an .

If you need an exemption from the Federal Marketplace, you must apply for the exemption BEFORE you can fill out Form 8965 and file your taxes.

Form 8965 is used to report to the IRS:

  • Any you may have to waive the penalty
  • If you have to pay the penalty, the instructions to this form contain a worksheet that is used to calculate that penalty.

Who needs to use this form?

If you did not have health insurance for some or all of 2018, and are , you will need to fill out Form 8965 and include it with your taxes.

Where to find the form:

IRS website at https://www.irs.gov/uac/About-Form-8965

Questions and Answers about Form 8965

Exemptions are available based on a number of circumstances, including certain hardships, some life events, health coverage or financial status, and membership in some groups. You claim some health coverage exemptions on your federal tax return. Others you apply for with a paper application.

You don’t have to pay the federal fee for any month you’re covered by a plan that qualifies as minimum essential coverage (MEC). If you’re uncovered only 1 or 2 months, you don’t have to pay the fee for any month. Find out if you qualify for an exemption and learn how to apply.

Go to HealthCare.gov to learn more about health coverage exemptions:

The federal penalty, or fee you pay for each month you do not have coverage in 2018, is calculated 2 different ways: As a percentage of your household income, and per person. You’ll pay whichever is higher.

Percentage of income

  • 2.5% of household income
  • Maximum: Total yearly premium for the national average price of a Bronze plan sold through the Marketplace

Per person

  • $695 per adult
  • $347.50 per child under 18
  • Maximum: $2,085

Paying the fee

  • Using the percentage method, only the part of your household income that’s above the yearly tax filing threshold ($10,300 for individuals, $20,600 for couples filing jointly in 2016, the most recent year available) is counted.
  • Using the per-person method, you pay only for people in your household who don’t have insurance coverage.
  • If you have coverage for part of the year, the fee is 1/12 (one twelfth) of the annual amount for each month you (or your tax dependents) don’t have coverage. If you’re uncovered only 1 or 2 months, you don’t have to pay the fee at all. Learn about the “short gap” exemption on HealthCare.gov.
  • You pay the fee when you file your federal tax return for the year you don’t have coverage.

Estimating your fee

Use this IRS tool to estimate your individual responsibility payment →

Using the Form 8965 instructions, calculate your penalty for the months you didn’t have insurance, if you do not have exemption for those months.

It’s calculated on the Shared Responsibility Payment worksheet that is part of Form 8965 instructions.

If you need to complete Form 8965 or Form 8962 when you file your 2018 federal tax return, you may be asked for information about Health Connector health plans that were available to you for 2018.

You may need to know the cost of premiums for the second lowest cost Silver plan (SLCSP) or the lowest cost Bronze plan. These two tools help you look up the information you need.

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