Do I need to file form 1095-B for Texas Medicaid with TurboTax or just 1095-A?

If we don't need to file the 1095-B, why do they even send it to us? Also, what happens if we lose it? I just got mine in the mail and I'm always paranoid about keeping too much paperwork.

They send Form 1095-B as proof that you had qualifying health coverage, which satisfies the health insurance requirement. While the tax penalty for not having coverage was removed at the federal level, some states still have mandates, and the form serves as your documentation if ever questioned about your coverage. If you lose the form, don't worry too much. You can request another copy from your Medicaid office if needed. I generally recommend keeping tax-related documents for at least 3 years after filing, but since this form isn't actually submitted with your return, it's mainly for your records.

How does that work exactly? Do you just upload your tax documents and it tells you what to do with them? Does it work with other forms too or just health insurance stuff?

Sounds interesting but I'm always skeptical about putting my tax info on random websites. Is it secure? And how much does it cost to use?

The way it works is super simple - you just take a picture of your tax form or upload the PDF and their system analyzes it and tells you what it means for your taxes. It covers basically all tax forms, not just health insurance documents. It's completely secure - they use the same encryption as banks and don't store your documents after analysis. I was hesitant at first too, but they explain everything in normal words instead of confusing tax jargon. I don't remember the exact pricing, but I found it reasonable for the peace of mind it gave me.

Wait how does that even work? The IRS phone system is always jammed. Are you saying there's some magical way to skip the line or something?

Sounds like BS honestly. Nobody can magically get you through to the IRS faster. They probably just charge you to call a number that's no different than the regular IRS number. I'll stick with waiting on hold like everyone else.

It's not magic - they use a system that navigates the IRS phone tree and waits on hold for you. When an actual agent picks up, you get a call connecting you directly to them. It saves you from having to personally wait on hold for hours. They don't provide any special access number - they're just using technology to make the regular process more efficient. You still talk to the same IRS agents everyone else does, you just don't have to waste your own time waiting. I was skeptical too until I tried it and got through to resolve my issue in one day instead of weeks of trying.

Did your tax preparer explain why the 1095-A is treated differently than the B form? I'm trying to understand the difference between them.

The 1095-A is for Marketplace insurance and involves tax credits that need to be reconciled on your tax return. Those credits directly impact your tax liability, so the IRS needs that information. The 1095-B just proves you had coverage through a government program like Medicaid, which doesn't involve tax credits that need reconciliation. Since there's no direct tax impact from having Medicaid (no credits to calculate), there's nothing for the IRS to process from the form.

The federal penalty was removed, but some states still have their own individual mandates and penalties. Plus, the forms are still required to be sent out by insurance providers and government programs regardless.