Federal Tax Filing

New Employer-Coverage Affordability Rule

For tax years 2023 through 2025, if your household income that exceeds 400 percent of the federal poverty level, you may be eligible for tax credits to lower the cost of your health plan.

Starting with tax years beginning after Dec. 31, 2022, the method we use to determine if an employee's spouse or dependents can receive advanced premium tax credits (APTC) has changed. Previously, the affordability of employer-sponsored health insurance for these family members was evaluated solely on the premium cost for the coverage of the employee alone. Now, the affordability will be determined based on the cost to the employee for insuring both themselves and their family members under the employer's plan. This change aligns with specific federal poverty line percentages.

2023 Health Coverage and Your Federal Taxes: IRS Form 8962

If you had a plan through Covered California at any point during 2023, you must file your federal tax return and "reconcile” your premium tax credit.

Use Form 1095-A to complete IRS tax Form 8962 and reconcile your 2023 premium tax credit when you file your 2023 taxes if you qualified for or received tax credits to help pay for your plan.

Once you do, you may:

• Owe taxes if you received more APTC than you qualified for in 2023. You'll have to report the excess amount on your 2023 tax return by filing Form 8962, Premium Tax Credit.

• Get a refund or lower the amount of taxes you owe if you received less APTC than you qualified for. You still need to include Form 8962 with your tax return.

• Have to resubmit your 2023 tax return if you filed electronically but it was rejected for a missing Form 8962. You'll need to complete Form 8962 or an explanation for why you're missing the form, and attach it when you refile. Learn how to fix it and correctly file electronically.

Get more details from the IRS about filing taxes when you get the premium tax credit.

Visit IRS.gov for assistance with correcting an electronically filed return rejected for a missing Form 8962.

IRS Form 1095-A

Covered California will send IRS Form 1095-A Health Insurance Marketplace Statement to all enrolled members. It is used to fill out IRS Form 8962 Premium Tax Credit as part of your federal tax return. 

1. Get Form IRS Form 1095-A by mail.

Did not receive IRS Form 1095-A by mail? Call us.

2. Make sure your form IRS Form 1095-A is correct. If not, call us.

Verify basic information about your health plan and household members on Parts I and II of the form. See errors? Call us.

Make sure the premium for your second-lowest-cost Silver plan is correct. Use the Shop and Compare Tool to find the second-lowest-cost Silver plan.

3. Fill out IRS Form 8962 to calculate the amount of Premium Tax Credit you received in advance and the amount that you were entitled to.

Use this calculator to find the amount of the second-lowest-cost Silver plan premium where you live.

If you need help, please contact the Covered California Service Center. Representatives cannot provide tax advice.

Resources

For information about your state taxes (Form FTB 3895), see State Tax Filing.

For information on limits to what you may need to repay to the Franchise Tax Board or the Internal Revenue Service,, see Financial Help Repayment Limits.

For other information, see: Where to Find Your Forms, Errors on your forms?, and If You Didn’t Receive Your Tax Forms.

Please consult the California Franchise Tax Board, the Internal Revenue Service, or a tax advisor if you have questions about how to use these forms when preparing your taxes, penalty amount, or tax return.