Every tax season, one of the most common reasons refunds are delayed or tax returns are rejected is because Form 1095-A was missing.
If you or anyone in your household had health insurance through the Marketplace (also known as Obamacare), this form is required to complete your tax return correctly.
At Molimar Tax, we always say: if you had Marketplace insurance, your taxes are not complete without 1095-A.
Let’s break it down clearly.
What Is Form 1095-A?
Form 1095-A is issued by the Health Insurance Marketplace (Healthcare.gov or your state exchange).
This form reports:
• The months you had Marketplace coverage
• The total monthly premium of your plan
• The Second Lowest Cost Silver Plan (benchmark plan used for calculations)
• The Advance Premium Tax Credit (APTC) paid on your behalf
If the government helped lower your monthly insurance payments, that help is technically an advance tax credit. And the IRS requires us to reconcile it when you file your tax return.
Why Is 1095-A Required When Filing Taxes?
When you enroll in Marketplace insurance and receive a subsidy, you are estimating your annual income.
At the end of the year, we must compare:
• What you estimated you would earn
• What you actually earned
This calculation is completed on Form 8962.
Form 8962 determines:
• If you received the correct amount of subsidy
• If you qualify for additional credit
• If you received too much and must repay part of it
Without Form 1095-A, Form 8962 cannot be completed correctly. And without Form 8962, the IRS will reject or freeze your return.
What Happens If 1095-A Is Missing?
If you attempt to file without it:
• Your return will likely be rejected electronically
• Your refund may be frozen
• The IRS may send a letter requesting Form 8962
• Processing can be delayed for weeks or even months
This is one of the most common avoidable delays we see during tax season.
How 1095-A Can Increase or Reduce Your Refund
One of the biggest misconceptions about Form 1095-A is that it automatically means you will owe money back. That is not always true.
Whether it helps or hurts depends entirely on your final income compared to what you estimated when you enrolled in Marketplace coverage.
When 1095-A Can Help You
Form 1095-A can increase your refund when:
• You earned less than you estimated
• Your income dropped during the year
• You had reduced work (self-employed, 1099 workers, seasonal jobs)
• You added a dependent during the year
• Your household size changed
If you received a smaller Advance Premium Tax Credit than you qualified for, Form 8962 may calculate an additional credit. That additional credit increases your refund.
In these cases, the reconciliation works in your favor.
This happens more often than people realize — especially for self-employed individuals whose income fluctuates
When 1095-A Can Hurt You
Form 1095-A can reduce your refund or create a balance due when:
• You earned more than you estimated
• You worked more months than expected
• Your income increased significantly
• You removed dependents during the year
• You had dual coverage and did not update the Marketplace
If you received more Advance Premium Tax Credit than you qualified for, the IRS requires repayment of some or all of the excess.
For higher income levels, repayment caps may not apply — meaning the full excess credit must be repaid.
This is not a penalty. It is simply correcting the estimate that was made at the time of enrollment.
Why Income Reporting During the Year Matters
Many taxpayers forget to update their Marketplace account when:
• They get a better job
• They increase self-employment income
• A spouse starts working
• Household size changes
When the Marketplace does not receive updated income information, the subsidy calculation continues based on old estimates.
That is where repayment surprises come from.
Common Situations That Create Problems
We often see issues when:
• A spouse had Marketplace insurance but the other spouse did not
• Children were covered under a separate Marketplace policy
• A taxpayer changed jobs mid-year and switched to employer insurance
• A taxpayer forgot they had Marketplace coverage for only a few months
Even one month of Marketplace coverage requires 1095-A reporting.
How to Get Your 1095-A
You can download it directly from your Marketplace account at Healthcare.gov or your state exchange portal.
It is not available from:
• Your employer
• Your insurance card
• The IRS transcript
Only the Marketplace issues Form 1095-A.
If you lost access to your account, you must contact the Marketplace directly to retrieve it.
How 1095-A Affects Your Refund
Depending on your final income:
• You may receive additional refund if you qualified for more credit
• You may have to repay part of the subsidy
• Your refund may decrease
• In some cases, you may owe
This is not a penalty — it is simply reconciling the estimate made at the beginning of the year. Planning ahead and reporting accurate income to the Marketplace during the year helps avoid large repayment surprises.
The Bottom Line
Form 1095-A is not good or bad on its own. It is simply a reconciliation tool. It can:
• Increase your refund
• Reduce your refund
• Create a balance due
• Or have no major effect
What matters is accurate reporting and proper reconciliation. At Molimar Tax, we carefully review Marketplace coverage to ensure Form 8962 is completed correctly and to minimize unnecessary repayment surprises.
Advice from Molimar Tax
Before your tax appointment, please bring:
✓ Form 1095-A (if anyone in your household had Marketplace insurance)
✓ All W-2s and 1099 forms
✓ Any IRS or Marketplace letters
Our goal is to file your return correctly the first time — no rejections, no delays, no unnecessary letters.
If you are unsure whether you had Marketplace coverage, we can help you verify.
For over 25 years serving the Hyattsville community, our priority has always been accuracy, compliance, and protecting your refund.
If you have questions about your 1095-A or received a rejection notice related to Form 8962, contact Molimar Tax. We are here to help you resolve it quickly and properly.
