Registered Tax Return Preparer RTRP Practice Exam

A taxpayer is required to file Form 1095-A when they have received health insurance coverage through the Health Insurance Marketplace. This form serves as a crucial document that provides information about the health insurance purchased, including data needed to determine eligibility for premium tax credits and to complete Form 8962, Premium Tax Credit.

Receiving health insurance through the Marketplace generates this form because it documents the amount of premium tax credits the taxpayer may qualify for based on their income and family size. It also indicates whether they and any dependents have minimum essential coverage during the tax year. This requirement helps ensure that taxpayers comply with the Affordable Care Act's provisions regarding health coverage, making it essential for those participating in the Marketplace to file this form on their tax returns.

In other scenarios, such as having student loan debt, self-employment income, or selling property during the year, different forms and reporting requirements apply, but they do not necessitate the filing of Form 1095-A.