What Is a 1095-B Form, and How Does It Impact Your Taxes?
Health insurance is one of the most essential forms of insurance any of us can buy. And while you’re likely already familiar with its importance when it comes to covering the cost of medical treatments, did you know it can also impact your taxes — particularly the way you file? Whether you obtain a policy through the Affordable Care Act’s Marketplace or your employer provides it for you, there are several different ways health insurance affects tax reporting.
Each time a new year rolls around, different entities begin sending out tax forms related to health insurance that you’ll need when you prepare to file for the previous calendar year. One of these is called Form 1095-B, and there are some key situations that determine whether or not you receive this document. If you get a 1095-B form, you’ll need some of the information on it to file your taxes — and the IRS may use the form to determine whether you should receive a tax credit based on health insurance. Here’s what you need to know if you find yourself with a 1095-B form in hand when tax time approaches.