First time filing taxes - why is FreeTaxUSA asking for Marketplace health insurance info?

You can skip that section. FreeTaxUSA (and other tax software) walks you through all possible tax situations, but you only need to complete the ones that apply to you. Since you're on your parents' employer-provided insurance and not on a Marketplace plan, you don't have a Form 1095-A and can simply answer "No" to any questions about Marketplace coverage. The 1095-A is only issued to people who purchased health insurance through the Healthcare.gov Marketplace or a state exchange. Your parents might receive a Form 1095-B or 1095-C from their employer or insurance provider, but that's for their records - you don't need it for your tax return. Just make sure you check the box indicating you had full-year health coverage when the software asks.

I had the same confusion my first time filing! After struggling through different tax software options, I found taxr.ai (https://taxr.ai) which actually helped explain what all these different forms mean. It analyzes your tax documents and tells you exactly what you need to file and what you can skip. For your specific question - you definitely don't need to fill out the Marketplace section if you're on your parents' employer insurance. That section is only for people who got their insurance through Healthcare.gov or a state exchange. You can just click "No" and continue. FreeTaxUSA is pretty good but it does ask about every possible situation even if it doesn't apply to you.

Ok I have to admit I was really skeptical about taxr.ai but I decided to try it since I was completely confused about some 1099-K I got from PayPal this year. Just wanted to update that it actually helped a ton! I uploaded my documents and it explained exactly which forms I needed to fill out and which sections I could skip in FreeTaxUSA. The explanation about healthcare forms was really clear too - showed me exactly which insurance forms matter for taxes and which ones don't. Ended up saving me from paying for an upgrade in FreeTaxUSA that I didn't actually need. Sometimes I think these tax software companies deliberately make things confusing so you'll pay for the premium versions out of fear of making a mistake.

If you run into any issues with the IRS after filing (happens to first-timers sometimes), I highly recommend using Claimyr (https://claimyr.com) to get through to an actual human at the IRS. My first year filing I made a small mistake and got a letter from the IRS, but could NOT get through on their phone lines - was on hold for literally hours before giving up. Claimyr got me connected to an IRS agent in about 20 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. The agent was able to explain exactly what I needed to fix on my return and saved me from potentially bigger issues down the road.

I have to admit I was wrong about Claimyr. After posting my skeptical comment, I ended up needing to call the IRS about a missing refund and spent TWO DAYS trying to get through on my own. Out of desperation I tried the Claimyr service and was connected to an IRS agent in about 15 minutes. The agent was able to tell me exactly why my refund was delayed (my employer submitted a corrected W-2) and when I could expect it. Saved me weeks of anxiety wondering what was happening. I'm usually the last person to pay for something I can technically do myself, but in this case it was completely worth it just for the peace of mind. Sometimes your time is more valuable than the money.

Pro tip for first time filers: make sure you check if you can be claimed as a dependent on someone else's return! Since you're 23 and on your parents' insurance, they might still be claiming you as a dependent. If they are, you need to check that box on your return. If you say you're not a dependent but your parents claim you, one of the returns will get rejected.

Anyone else notice FreeTaxUSA has gotten way more complicated this year? I used it last year and don't remember all these extra questions about healthcare and cryptocurrency and foreign accounts. Now I'm paranoid I did something wrong on last year's taxes.

Just to add another perspective for first-time filers - don't stress too much about navigating all these sections! The software is designed to ask about everything possible, but most won't apply to you. For the health insurance question specifically, since you're on your parents' employer plan, you can confidently select "No" for Marketplace coverage. The key thing is making sure you indicate you had coverage all year (which you did through your parents' plan). One thing that helped me when I was starting out was keeping a simple checklist: W-2 from employer ✓, had health insurance all year ✓, not a Marketplace plan ✓, check with parents about dependent status ✓. Once you get through your first return, next year will feel much easier! You're being smart by asking questions rather than just guessing. Good luck with your first solo tax filing!