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2019 Federal Return and the Affordable Care Act

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.

Mark Castro, CPA

Mark Castro, CPA

Mark has been with CrossLink Professional Tax Solutions (CPTS) since 2008, but has been in the tax industry since 1990. As the government/tax industry liaison for CPTS, Mark has been very active in working with the IRS, States, and other tax industry members to help improve communications, promote standardization, and simplification of eFile systems. Mark has also been active with industry associations as a board member of the National Association of Computerized Processors (NACTP) and the Council of Electronic Revenue Communication Advancement (CERCA) for many years. These two associations work with the IRS and States to help solve key eFile and electronic tax system issues and work to improve the operations of the State and IRS eFile systems.
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Recent Tax Updates

Form 8962 premium tax credit health insurance

Form 8962 Reminders for Tax Season 2023

Tax preparers must remember that if a taxpayer received an advance premium tax credit (subsidy) to help pay for their health insurance that they obtained through an Exchange, they must complete (including the reconciliation of the advance premium tax credit) and include the Form 8962 (Premium Tax Credit) with their federal return.

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Premium Tax Credit

Premium Tax Credit

What is the Premium Tax Credit? The Premium Tax Credit is a refundable tax credit for certain people who enroll, or whose family member enrolls,

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Form 8615

Form 8615 is required to be used when a taxpayer’s child had unearned income over $2,200 and is

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Why is my tax refund so low?

Why is My Tax Refund So Low

Many taxpayers may be surprised that the amount of their 2022 tax return is lower this filing season, leaving them to wonder, “Why is my tax refund so low?”

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Form 1099-K

Understanding Form 1099-K

Form 1099-K is an IRS information return used to report payment card and third-party network transactions on a federal tax return for businesses, sole proprietors, individuals, and gig economy workers.

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