We all know that April is tax month but it’s never too early to start planning for the next tax year. Here are a few items to consider for your 2026 tax strategy.
Are premiums deductible? If you are self-employed, the health insurance premiums that you pay can be deducted as an Adjustment to Income on Schedule 1 of Form 1040. If you are not self-employed, you probably won’t be able to deduct your premiums. Those with very high medical expenses may qualify to include premiums as an itemized deduction.
Form 1095 – If you are enrolled in health coverage during 2025, you should receive a Form 1095-A, 1095-B or 1095-C. The form you receive is based on the source of your health insurance – if that is an individual policy or an employer group plan. The form verifies that you had health insurance coverage. If your insurance was through the Health Insurance Marketplace, Form 1095-A includes the amount of Advance Premium Tax Credit that you used during 2025. This information is used to determine whether you used more or less than you are eligible to receive. This form needs to be given to your tax preparer. If you have an unexpected change in income during 2025, it is advisable to update this on your 2025 Marketplace application to reduce unexpected tax liability.
HSA contributions – If your policy in 2025 is a high-deductible health plan, you can contribute to a Health Savings Account until the tax filing due date in April 2026. You can make contributions for the previous tax year. Your contribution is deductible as an Adjustment to Income on Schedule 1 of Form 1040.