Tax Refund Delayed? Form 1095-A May Be the Reason
Why Marketplace Health Insurance and Form 1095-A Can Delay Your Tax Refund
You filed your taxes early this year. You double-checked every number, uploaded every document, and hit “submit” with a sigh of relief. For a few days, you even felt accomplished, another tax season handled like a pro.
Then, the message appeared: “Your tax return is delayed.”
Suddenly, that relief turned into worry. You start running through questions in your head: Did I forget something? Did I do my math wrong? Did the IRS make a mistake?
If you bought your health insurance through the Marketplace, the one connected to the Affordable Care Act, the answer might surprise you. Many taxpayers in your exact situation discover that the problem isn’t with their math or their filing software. It’s with a single, often-overlooked form called Form 1095-A, the document that tells the IRS about your health insurance coverage and any discounts you received through the Premium Tax Credit.
It’s easy to miss. You might not even realize you’re supposed to have it until your refund is frozen or your return gets flagged. But for anyone who received a reduced monthly rate for their Marketplace insurance, this form isn’t optional; it’s essential.
What the IRS Checks on Your Form 1095-A and Premium Tax Credit
When you signed up for Marketplace health insurance, you probably qualified for a discount that lowered your monthly payment. That discount is officially called the Premium Tax Credit. It’s a government subsidy that helps make health coverage affordable for individuals and families who meet certain income guidelines.
Here’s the part most people miss. The amount of that discount is based on the income you estimated when you applied for coverage. But your final tax return shows your actual income. The IRS uses Form 1095-A to compare those two numbers and make sure the discount you received matches what you qualified for.
If your income ended up being higher than expected, you might have to pay back some of that credit. If it were lower, you might be owed a little more. Either way, the IRS can’t finalize your return until it verifies those details, and Form 1095-A is the document that gives them that information.
Form 1095-A works hand in hand with Form 8962, Premium Tax Credit Reconciliation. Together, they confirm that your Marketplace insurance details and income match your return so your refund can be processed accurately.
Without these forms, your tax return gets stuck in review. The system pauses everything until the IRS can confirm your health insurance details. For many taxpayers, this means refund delays that stretch for weeks or even months.
It’s not about punishment. It’s about accuracy. The IRS needs to make sure every number lines up, and Form 1095-A is the missing puzzle piece that keeps your return moving forward.
Form 1095-A: The Marketplace Tax Form Everyone Forgets
Form 1095-A is officially called the Health Insurance Marketplace Statement. It comes from the same place where you bought your health insurance, usually HealthCare.gov or your state’s Marketplace. Think of it as a summary of your coverage and any financial help you received through the Premium Tax Credit.
This form lists a few key details that the IRS needs:
Who was covered under your plan?
Which months did you have Marketplace coverage?
How much does your plan cost each month?
How much of your premium was paid by the government?
If you received lower monthly payments for your insurance, that means part of your premium was covered through an advance of the Premium Tax Credit. Form 1095-A reports that amount.
You’ll usually receive it by mail or electronically in January or early February, depending on how you chose to get your Marketplace notices. Sometimes it shows up in your online Marketplace account instead of your mailbox.
If you used tax software, it may even prompt you to upload the form before filing. But if you skipped that step or didn’t realize you needed the document, your return will likely get flagged later.
Form 1095-A might look like another routine piece of tax paperwork, but it plays a major role in confirming your eligibility for health insurance subsidies. In short, it’s the IRS’s way of double-checking that your tax return and your Marketplace coverage agree with each other.
What Happens If You Don’t File Form 1095-A With Your Taxes
If Form 1095-A isn’t included with your tax return, the IRS can’t verify your Premium Tax Credit. When that happens, your return usually gets set aside for manual review. In most cases, it doesn’t necessarily mean you’re being audited. It simply means the IRS needs more information before it can release your refund.
Here’s what typically follows:
Your Refund Gets Delayed
When Form 1095-A is missing, the IRS essentially hits “pause” on your tax return. Nothing moves forward until that form shows up and is verified. What feels like a small oversight can snowball into weeks or even months of waiting. You check your refund status, and it’s the same message every time: “Still being processed.” Meanwhile, bills don’t wait. For many taxpayers, this delay becomes an unexpected source of anxiety, especially when they were counting on that refund to arrive quickly.
You May Receive a Letter From the IRS
A few weeks later, the envelope arrives official IRS letterhead. It’s a notice requesting your missing Form 1095-A or asking you to amend your return. The letter lists the exact form and year in question, but for many, that moment of seeing “Internal Revenue Service” in the mailbox is nerve-racking. Even though it’s not technically an audit, it feels serious. And it is. Until you respond and provide the correct information, your return remains on hold, and the clock keeps ticking.
Your Return Might Need to Be Corrected
If the numbers on your Marketplace form don’t match what’s on your tax return, the IRS can’t just ignore it; they’ll flag the discrepancy. That often means you’ll need to file an amended return to fix the mismatch. It’s a tedious process that can take hours to complete, plus several more weeks for the IRS to reprocess it. Every correction adds another layer of waiting, frustration, and uncertainty about when your refund will finally appear.
You Could Owe More Tax
For many taxpayers, this is where the real sting happens. If your actual income ended up being higher than what you estimated when you applied for health coverage, you may have received too much of the Premium Tax Credit. The IRS will require you to pay back part or, in some cases, all of that extra credit. It’s not just disappointing; it can feel like getting hit with a surprise bill long after you thought your taxes were done and dusted.
In Rare Cases, Your Refund Is Adjusted or Denied
When the IRS can’t verify your Marketplace information at all, they may remove the Premium Tax Credit from your return entirely. That adjustment reduces your refund or, worse, creates a balance due that you weren’t expecting. For taxpayers already dealing with tight budgets, this kind of correction can be a harsh wake-up call. It’s a reminder that every number on your tax forms matters, and even small mistakes can have real-world consequences.
The good news is that most of these situations can be fixed. The key is to act quickly. The sooner you send the missing form or correct the numbers, the sooner your refund can be released.
Missing Form 1095-A doesn’t mean you’ve done something wrong. It just means there’s a piece of the tax puzzle the IRS hasn’t seen yet.
Valid Exceptions, Common 1095-A Mistakes, and How to Fix Them
Sometimes it’s not your fault that Form 1095-A is missing or incorrect. There are a few valid reasons it might not show up when you expect it to, and several simple ways to fix the problem once you realize what’s happened.
When You Might Not Have the Form Yet
You changed your Marketplace plan midyear
You recently updated your Marketplace account
Your insurer issued a corrected form
Common 1095-A Errors
Incorrect income or household size
Using the wrong form (1095-B or 1095-C)
Filing before a corrected version was issued
Missing a dependent’s coverage information
What to Do If You Don’t Have It
Check your HealthCare.gov account and download your form.
Contact the Marketplace call center if it’s still missing.
Wait for a corrected form if needed.
File an amended return if you’ve already submitted your taxes.
Frequently Asked Questions About Form 1095-A and Marketplace Taxes
Can I file my taxes without Form 1095-A?
Only if your insurance didn’t come from the Marketplace, if it did, you must include Form 1095-A and Form 8962, or your refund may be delayed.
When should I expect to receive my Form 1095-A?
Most people receive it by late January, though corrected versions may come in February or March.
What’s the difference between Form 1095-A, 1095-B, and 1095-C?
Form 1095-A applies to Marketplace coverage. Forms 1095-B and C come from employers or private insurers and don’t affect your refund in the same way.
How do I fix a missing or incorrect Form 1095-A?
Request a corrected form from your Marketplace account and amend your return if necessary.
What happens if I ignore the form?
The IRS can delay or adjust your refund and may remove your Premium Tax Credit until the correct form is filed.
How Trustway Accounting Helps With Marketplace Insurance and Form 1095-A
If you’ve ever felt overwhelmed trying to make sense of tax forms, you’re not alone. Many people who get insurance through the Marketplace don’t realize how closely their coverage is tied to their taxes until something goes wrong.
At Trustway Accounting, we help you make sense of it all. Our team understands how Marketplace insurance, Premium Tax Credits, and Form 1095-A work together. We review your documents, verify your coverage information, and help you correct or file the forms properly so your return moves forward smoothly.
If your refund is delayed or your return was rejected because of a missing or incorrect Form 1095-A, we can help you fix it quickly. And if you just want peace of mind before you file, we’ll make sure your paperwork is complete and accurate the first time.
Getting your taxes right shouldn’t feel like guesswork. Whether you’re correcting a mistake or simply avoiding one next year, professional guidance can make all the difference.
👉 Schedule a consultation with Trustway Accounting today, and let’s get your tax return and your peace of mind back on track.
