This 1095 Form overview has been updated for the 2023 & 2024 tax years. If you have a large employer who offers health insurance, you likely will have received a 1095-C form in the mail from your employer in recent months. And if you’re like me, your reaction was probably something along the lines of, “What is a 1095-C form?”
1095-C forms have only been sent out in just the last few years to employees. I was just as confused as anyone, so I decided to do a bit of digging to find out what a 1095-C form is, what I needed to do with it, and what it is meant to track.
It turns out that 1095-Cs aren’t the only form of 1095s. There are also 1095-A and 1095-B forms. Here’s what you need to know on each, starting with the 1095-C, as it will be the most prominent of the three.
What is a 1095-C Form?
A 1095-C form is new tax documentation that was created for health insurance reporting purposes in coordination with the Employer Shared Responsibility provisions of the Affordable Care Act.
Employers that offer employer-sponsored self-insured coverage use Form 1095-C to report information to the IRS and to employees about individuals who have minimum essential coverage under the employer plan and therefore are not liable for the individual shared responsibility payment for the months that they are covered under the plan.
It is also used to determine whether individuals have minimum essential coverage under the employer plan and therefore are not liable for the individual shared responsibility payment for the months that they are covered under the plan.
The 1095-C form reports:
- the employer’s address and employer identification number (EIN)
- the employee’s address and Social Security number (SSN)
- which months during the year the employee was offered coverage
- the cost of the cheapest monthly premium the employee could have paid under the plan
Applicable employers are required to send 1095-Cs to full-time employees by January 31 and file them with the IRS by February 28 if filing on paper (or March 31 if filing electronically) of the year following the calendar year to which the return relates.
Who Needs to File a 1095-C Form?
According to the IRS, in the 1095-C Form instructions,
Employers with 50 or more full-time employees (including full-time equivalent employees) in the previous year use Forms 1094-C and 1095-C to report the information required under sections 6055 and 6056 about offers of health coverage and enrollment in health coverage for their employees.
A full-time employee is technically someone who averages at least 30 hours a week. That is most working Americans.
Do individuals need to file the 1095-C form? No. But it is still worth checking for accuracy and keeping for your records. You will also need it to prepare your tax return.
What is a 1095-A Form?
IRS Form 1095-A is similar to 1095-C, but it is sent by Health Insurance Marketplaces and provides information as to any Marketplace Exchange coverage you had (via either Healthcare.gov or a state exchange), and any Premium Tax Credits you received during the previous year. Individuals do not need to file a 1095-A form, however, it is required to prepare your tax return and should be checked for accuracy and kept for your records. The 1095-A form has information that is necessary to reconcile any Premium Tax Credit you received.
What is a 1095-B Form?
IRS Form 1095-B is similar to 1095-A and 1095-C, but will be sent from an insurance company if you were enrolled in a multi-employer plan. Again, individuals do not need to file a 1095-B form, however, it is required to prepare your tax return and should be checked for accuracy and kept for your records.
Is it Possible to Receive More than One 1095 Form?
Yes – depending on who provided your health insurance, you could potentially receive each of the 3 forms (or multiple versions of the same form) during the same calendar year.
For more info, check out the IRS’s overview of 1095-A, 1095-B, and 1095-C forms.
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If you are retired, do you need to include a completed 1095C form with your submitted federal taxes?