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2019 Federal Return and the Affordable Care Act

January 3, 2020


With the exception of the individual penalty being zeroed out beginning in 2019, it is important to remember that all of the other Affordable Act provisions still apply to individuals for 2019 federal returns. Therefore it is important to remember the following:

Form 1095-A (Health Insurance Marketplace Statement)
Individuals who obtained their health insurance for all or part of 2019 at the Federal or a State Marketplace will receive a Form 1095-A (Health Insurance Marketplace Statement).

The 1095-A should be received:

  • For those who used the Federal Marketplace – throughout January but no later than January 31, 2030
  • For those who used a State Marketplace – no later than early February, 2020

A copy of the Form 1095-A will be available online for those who used the Federal Marketplace via their account on healthcare.gov in January. It may also be available online for those who used a State Marketplace.

Form 8962 (Premium Tax Credit)
A taxpayer who received an advance premium tax credit (subsidy) that reduced their 2019 health insurance premiums must complete a 2019 Form 8962 (Premium Tax Credit) and complete the reconciliation of the subsidy with the calculated credit.

It is important to remember that for taxpayers that received a subsidy during 2019, failure to complete the Form 8962 will result in a delay in the processing of their federal return.  When this occurs the IRS will send a letter to the taxpayer asking that a completed Form 8962 be completed and mailed to them. Once the IRS receives the Form 8962 the IRS will complete the processing of the return.

The result of the calculation of the premium tax credit and the reconciliation will be either a refundable credit or an additional tax.

In order to complete the reconciliation the taxpayer will need the information on the Form 1095-A.

See the 2019 Form 8962 instructions for more information on how the premium tax credit and how the reconciliation are calculated.


Recent Tax Updates

IRS Identity Theft Resources
February 19, 2020

Kiddie Tax Change and Form 8615
February 12, 2020

IRS Expands Their Identity Protection PIN (IP PIN) Program
January 23, 2020

2019 Federal Return and the Affordable Care Act
January 3, 2020

Extender and Disaster Tax Relief Provisions Included in the 2020 Consolidated Appropriations Legislation
December 27, 2019

Reminder of 2019 Federal Tax Changes
December 11, 2019

Additional Updates
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