Why Filing Taxes Is a Must for Marketplace Health Insurance

The Critical Link Between Taxes and Your Health Insurance Coverage

Today we’re diving into something that catches many people off guard: the importance of filing your tax return when you’re enrolled in Marketplace health insurance.

If you’ve purchased a health plan through the Marketplace (Healthcare.gov)—whether or not you received financial assistance—this is for you.

🧾 You Must File a Tax Return—Even If You Made Little or No Income

Whether you get a premium tax credit or not, filing your tax return is a requirement. You’ll receive a Form 1095-A, which details your insurance coverage and any tax credit you received. This form is critical for reconciling your insurance with the IRS.

❗Common Mistake Alert: Some clients who went to tax prep companies like H&R Block were incorrectly told they didn’t need to file because they didn’t earn “enough.” But if you’re on Marketplace insurance, you DO need to file—every single year.

⚠️ What Happens If You Don’t File?

• You risk losing your tax credit—which means your monthly premium could skyrocket.

• You may even lose your health insurance entirely if your eligibility can’t be confirmed.

• If your income was overestimated you might get a refund.

• If your income was underestimated, you could owe some of your tax credit back.

Either way, it’s better to file now than scramble later.

📝 Pro Tip: Don’t Wait

Even if you think you don’t owe anything, submit your 2024 taxes ASAP—even if it’s a paper form. Send it certified mail so you have proof it was received. The IRS is taking these requirements more seriously, and skipping this step could affect your 2025 coverage.

📲 What’s Changing in the System?

The Marketplace system is getting stricter:

• You can’t even complete an application without a valid Social Security number.

• The system will flag income changes from year to year, and require explanations (like “new job,” “retired,” or “self-employed”).

• These extra verification steps mean that the system is cross-checking your info with tax data more closely than ever.

That’s why filing your return matters more now than ever before.

✅ Bottom Line:

If you had Marketplace coverage and haven’t filed your 2024 tax return yet—now’s the time. Don’t wait until Open Enrollment (starting November 1), when your tax status could delay or block your ability to enroll.

👉 Ready to protect your coverage?

Schedule your personalized appointment at jkappconsulting.com and get peace of mind before Open Enrollment.