What is the purpose of Form 1095-A?

Form 1095-A serves specifically to report information about health insurance coverage that individuals obtain through the Health Insurance Marketplace. This form is important for taxpayers who have purchased health insurance through the Marketplace, as it contains information that is necessary for completing Form 8962, Premium Tax Credit, which is used to determine eligibility for premium tax credits and to reconcile any credits received in advance. This ensures that taxpayers accurately report their health coverage and any premium tax credits when they file their federal income tax returns.

The other options relate to different tax documentation needs and purposes: business income and expenses would be documented on forms such as Schedule C, retirement account contributions would be tracked through forms like 5498, and state income taxes are managed using forms appropriate to each state. Therefore, the correct answer highlights the unique and essential role that Form 1095-A plays in health insurance reporting.