Form 1095-A for Australians: 2025 Updates & Essential Info

Many Australians with connections to the United States—whether as dual citizens, expats, or investors—find US tax paperwork daunting. One of the more confusing documents is Form 1095-A, the Health Insurance Marketplace Statement. With the 2025 US tax year introducing key updates, it’s more important than ever for Australians affected by US tax law to understand what this form means, when it matters, and how to manage it.

What Is Form 1095-A and Who Receives It?

Form 1095-A is a document issued by the US Health Insurance Marketplace (also known as the “Exchange”). It details the health insurance coverage purchased through the Marketplace, the premiums paid, and any advance premium tax credits received. For Australians who lived, worked, or maintained US-based health insurance in 2024, this form could be relevant for the 2025 tax filing season.

• Dual citizens living in the US or splitting time between Australia and America may receive a 1095-A if they purchased insurance via healthcare.gov or a state exchange.

• Australian expats in the US on certain visas (like E-3 or Green Card holders) could get a 1095-A if they used the Marketplace.

• Non-resident aliens with US tax filing obligations (e.g., property income or dependents in the US) generally do not receive a 1095-A unless they purchased US health coverage.

It’s vital to note: this form is not issued by Australian insurers and has no direct role in Australian tax filings. However, it can impact your US tax obligations and credits.

2025 Policy Updates: What’s New with Form 1095-A?

The US government has extended several Affordable Care Act (ACA) provisions for 2025, continuing the higher premium tax credits introduced in response to the pandemic. Key updates Australians should know include:

• Enhanced Premium Tax Credits Extended: The expanded premium subsidies—originally set to expire—remain in place for 2025, making Marketplace coverage more affordable for many.

• Electronic Distribution: For 2025, most exchanges are issuing 1095-A forms electronically by default, speeding up access for overseas filers. Paper copies are available on request.

• Reporting Requirements: The IRS continues to require all 1095-A recipients to reconcile advance credits on their US tax return (Form 8962). Failure to file Form 8962 can delay refunds or impact eligibility for future credits.

For Australians who are US taxpayers, missing or incorrect 1095-A details can cause significant headaches. If you think you should have received a 1095-A but haven’t, check your online Marketplace account or contact the exchange directly.

How Does Form 1095-A Affect Your US Taxes?

The primary purpose of Form 1095-A is to help you complete Form 8962, which calculates your final premium tax credit for the year. Here’s what to keep in mind:

• Reconciling Credits: If you received advance credits based on estimated income and your actual income was higher or lower, you may owe money back or get an additional credit when filing your US return.

• Non-Resident Complications: Australians who qualify as non-resident aliens under US tax law generally aren’t eligible for Marketplace coverage or credits, but dual residents or those who spent significant time in the US may have to file.

• Australian Tax Impact: The 1095-A itself is not reported to the ATO and does not influence Australian Medicare or tax positions. However, US tax outcomes (like refunds or liabilities) can affect your global financial situation.

For example, if an Australian family spent part of 2024 living in California and bought insurance through Covered California, they’ll get a 1095-A in January 2025. When filing their 2024 US tax return in April 2025, they’ll use this form to reconcile their credits—potentially resulting in a refund, a bill, or no change.

Practical Tips for Australians Dealing with Form 1095-A

• Check Your US Tax Filing Status: If you’re required to file a US return, gather all relevant forms (including 1095-A) early. Missing this document can delay your tax filing or trigger IRS notices.

• Use the IRS Get Transcript Tool: If you lose your 1095-A, the IRS offers an online transcript service where you can access many tax documents.

• Review for Errors: 1095-A forms are sometimes issued with incorrect Social Security Numbers or coverage months. Always double-check details before filing your US return.

• Coordinate with Cross-Border Tax Specialists: US/Australian tax rules are complex. If you’re unsure about residency, credits, or dual filing, seek guidance from a tax expert with international experience.