{"id":2731,"date":"2025-08-15T08:34:01","date_gmt":"2025-08-15T08:34:01","guid":{"rendered":"https:\/\/www.luzenta.com\/blog\/?p=2731"},"modified":"2025-08-15T08:34:01","modified_gmt":"2025-08-15T08:34:01","slug":"form-1095-vs-1098-what-international-students-should-include-in-their-irs-tax-filing","status":"publish","type":"post","link":"https:\/\/www.luzenta.com\/blog\/form-1095-vs-1098-what-international-students-should-include-in-their-irs-tax-filing\/","title":{"rendered":"Form 1095 vs. 1098: What International Students Should Include in Their IRS Tax Filing"},"content":{"rendered":"

Navigating the U.S. tax system as an international student can be daunting, especially when it comes to understanding how health insurance impacts your tax filing responsibilities. Since the implementation of the Affordable Care Act in 2010, three new forms, 1095-A, 1095-B, and 1095-C, have become part of the tax process. Each form serves a distinct purpose and understanding what they signify is crucial to filing a correct and compliant tax return.<\/span><\/p>\n

What is Form 1095-A?<\/b><\/p>\n

Form 1095-A, officially referred to as the Health Insurance Marketplace Statement, is issued to individuals who obtained health coverage through the federal or state-based Health Insurance Marketplace, also known as Obamacare. It provides critical information such as the amount of advance premium tax credit received, details of the coverage month by month, and other relevant data about your health insurance plan. For international students who enrolled in a Marketplace plan, this form is essential to file a tax return, as it determines whether you received too much or too little in tax credits. If you are eligible for a premium tax credit, you must reconcile it when filing your taxes.<\/span><\/p>\n

The process of reconciling this tax credit involves calculating the total credit you were eligible for against the amount that was already paid in advance to your insurance provider. If you received more credit than you should have, you are required to pay back the difference. On the other hand, if you received less than you were eligible for, the additional amount will be added to your tax refund. The importance of accurately reporting information from Form 1095-A cannot be overstated, especially for students depending on tax credits to offset health insurance expenses.<\/span><\/p>\n

What is the Premium Tax Credit?<\/b><\/p>\n

The premium tax credit is a government initiative that helps individuals with low to moderate income levels afford health insurance coverage purchased through the Health Insurance Marketplace. This credit can either be received in advance to lower monthly premiums or claimed later as a refundable credit when filing your federal tax return. It ensures that health insurance coverage remains accessible to those who might otherwise struggle to afford it.<\/span><\/p>\n

If you opted to receive the premium tax credit in advance, those payments were sent directly to your health insurance provider throughout the year. During tax filing season, you must reconcile the credit. This means determining whether the amount of credit you received was appropriate based on your actual income. If the amount was excessive, you may owe money. If it was insufficient, you may be entitled to a refund.<\/span><\/p>\n

For international students classified as nonresidents, this situation typically arises only if they obtained coverage via the Health Insurance Marketplace. In such cases, the premium tax credit\u2014and Form 1095-A\u2014becomes relevant.<\/span><\/p>\n

What is Form 1095-B?<\/b><\/p>\n

Form 1095-B is typically issued when health insurance coverage is provided by a university, a private health insurance provider, or other institutions not associated with the Health Insurance Marketplace. This form outlines which months during the tax year you had insurance coverage, along with the names of any dependents who were also covered under the plan.<\/span><\/p>\n

It is essentially a verification form that demonstrates you met the minimum essential coverage requirements under the ACA. However, it does not play a role in tax credit reconciliation. For international students on F-1 or J-1 visas, receiving this form does not necessarily mean that any action is required when filing taxes. Nonetheless, it is wise to retain a copy in your personal records for documentation purposes.<\/span><\/p>\n

What is Form 1095-C?<\/b><\/p>\n

Form 1095-C is provided by employers with 50 or more full-time employees. It documents the health insurance coverage offered to you, the periods during which you were covered, and details about the plan itself. Employers are required by law to issue this form to applicable employees by the end of January each year.<\/span><\/p>\n

For international students who work part-time on campus or through Curricular Practical Training (CPT) or Optional Practical Training (OPT), this form may appear if your employer qualifies under the size requirement and you met the minimum number of working hours. Even if you receive this form, you do not need to include it in your tax return if you are filing as a nonresident. Like Form 1095-B, it serves more as a record of coverage than a requirement for tax reporting.<\/span><\/p>\n

Do You Need Form 1095 When Filing a Nonresident Tax Return?<\/b><\/p>\n

In general, nonresident taxpayers\u2014especially those on F-1 or J-1 visas\u2014do not need to include Form 1095-B or 1095-C when filing their federal tax return. These forms are not essential for tax calculation purposes and have no bearing on your taxable income or refund amount.<\/span><\/p>\n

However, Form 1095-A is a different matter. If you were enrolled in a Marketplace plan, this form must be included in your tax return. It directly impacts the calculation and reconciliation of the premium tax credit. Failing to include it can result in underpayment or overpayment of taxes, leading to additional penalties or lost refunds.<\/span><\/p>\n

For this reason, it is essential to review whether your health insurance came through the Marketplace. If it did not, and you did not receive any advance tax credits, Forms 1095-B and 1095-C are typically not required for filing.<\/span><\/p>\n

Why Do International Students Receive These Forms?<\/b><\/p>\n

It can be confusing to receive a 1095 form if you are not required to use it. This often happens because health coverage providers and employers are mandated to issue these forms to anyone they cover or employ. These forms do not account for the recipient’s tax residency status, which is determined based on the Substantial Presence Test and visa category.<\/span><\/p>\n

Many international students receive 1095-B or 1095-C simply because they held a university or private insurance policy or worked part-time for a qualifying employer. Even though these forms may not be used during tax filing, they are legitimate records and should be kept for reference.<\/span><\/p>\n

Common Misunderstandings About Health Insurance and Taxes<\/b><\/p>\n

One of the most common misconceptions is that receiving a 1095 form automatically means you have to use it in your tax return. Another frequent error is assuming you qualify for U.S. health-related tax credits simply because you had insurance coverage. Both assumptions can lead to filing mistakes.<\/span><\/p>\n

Inaccurately reporting information on your tax return\u2014such as claiming credits for which you are not eligible\u2014can result in noncompliance with IRS regulations. This can lead to penalties, interest on underpaid taxes, or issues with future U.S. visa applications. Ensuring that you understand which forms are relevant based on your visa type and insurance source is key to staying compliant.<\/span><\/p>\n

Additionally, some students mistakenly file their taxes as residents to take advantage of tax deductions or credits, which is not allowed under their visa status. Filing as a resident when you are actually a nonresident can jeopardize your legal standing and immigration future.<\/span><\/p>\n

Keeping Health Insurance Forms for Your Records<\/b><\/p>\n

Even if you are not required to submit Form 1095-B or 1095-C with your tax return, you should keep them with your financial records. These forms may be useful in the future if questions arise about your insurance coverage or if your tax residency status changes in subsequent years.<\/span><\/p>\n

These documents could also be required when applying for health insurance in the future or verifying previous coverage during government or legal reviews. Keeping a secure and organized file of all health and tax documents is a smart habit for any international student navigating life in the U.S.<\/span><\/p>\n

Requirements for Form 1095 Series<\/b><\/p>\n

To summarize the relevance of the three types of 1095 forms for international students:<\/span><\/p>\n