What is the purpose of the IRS Form 1095-A?

The purpose of the IRS Form 1095-A is to provide information about health insurance coverage that individuals have purchased through the Health Insurance Marketplace. This form is essential for individuals as it contains details such as the coverage start and end dates, the monthly premium amounts, and the amount of premium tax credit received, if any. This information is crucial for accurately filing federal tax returns, specifically when claiming premium tax credits or reconciling advance premium tax credits received against what they were eligible for based on their actual income.

While the other options relate to aspects of health insurance or tax reporting, they do not encapsulate the specific function of Form 1095-A. Option A incorrectly implies that the form is about reporting income, whereas the form focuses on insurance coverage details. Option C suggests that the form is used to apply for tax credits, but it actually reports the information needed to claim them on a tax return. Option D refers to job-related health benefits, which are reported on different IRS forms and not covered by Form 1095-A.