How Insurance Brokers Can Help Clients with Marketplace Taxes | Solstice

With tax season here, insurance brokers can play a significant role for their clients. If you have clients who were enrolled in federal marketplace insurance last year, they will have to report any subsidies they received. This includes the premium tax credit (PTC) and insurance premiums they paid.

Some clients may be new to this type of coverage. There are also forms your client could be filling out for the first time. Advocate for your clients by getting educated on how to access and understand the tax forms for marketplace coverage.

You can earn client loyalty by educating them on filing taxes for marketplace coverage. The last day to file taxes is April 18th. Now, we’ll dive into the types of tax forms your clients may need to use and how to access them.

Resources to give your clients:

Only a Certified Public Accountant (CPA) can look for deductions and file taxes on behalf of clients. However, you can assist your clients in accessing and understanding their tax forms.

In fact, there is a “Tax Season Readiness” guide for agents and brokers. The information is specifically for plans in the federal marketplace. State-sponsored plans can have different tax filing requirements.

How you can help your clients:

You can use the above guide to help your clients on:

• Understanding Form 1095-A (the “Health Insurance Marketplace Statement”) and when they should receive it in the mail (no later than mid-February).
• How to review Form 1095-A for accuracy, and the potential implications of not providing all their information.
• How Form 1095-A relates to Form 8962.
• Details that can be used to complete a federal income tax return (such as the monthly premium amount)
• Understanding how to reconcile their APTC with the PTC allowed.

Additional resources for clients:
Many people enrolled in marketplace coverage have access to free in-person assistance for filling out their taxes. There is Volunteer Income Tax Assistance and AARP Tax Aide.

PTC extension:

The IRS gathers information to ensure any subsidy amount received for the tax year aligns with the household income level for the year. Additionally, the household income levels are used to determine any subsidy your client could be eligible for in the upcoming plan year. With the introduction of the Inflation Reduction Act, clients now have the ability to earn PTCs through 2025. You can talk to your clients about this.

The information in this blog is based on Solstice's review of the publicly available resources and is not intended to provide legal advice. While we make every effort to present and update accurate information, interpretations may vary. The overviews provided here are intended as an educational tool only and should not be relied upon as legal or compliance advice.

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