Introduction to Forms 1095-A, 1095-B, and 1095-C
The Affordable Care Act introduced new tax reporting requirements for individuals and employers, resulting in the creation of Forms 1095-A, 1095-B, and 1095-C. These forms are used to report healthcare coverage information to the IRS.
Form 1095-A is used by the Health Insurance Marketplace to report information about individuals who enrolled in a qualified health plan through the Marketplace. Forms 1095-B and 1095-C are used by insurers and employers to report information about healthcare coverage provided to individuals.
Form 1095-A: Health Insurance Marketplace Statement
Form 1095-A is a statement provided by the Health Insurance Marketplace to individuals who enrolled in a qualified health plan through the Marketplace. The form reports information about the individual's healthcare coverage, including the months of coverage and the amount of the advance payment of the premium tax credit.
Individuals who receive Form 1095-A will use the information on the form to complete their tax return, specifically Form 8962, which is used to reconcile the advance payment of the premium tax credit with the actual premium tax credit allowed.
Form 1095-B: Health Coverage
Form 1095-B is used by insurers and other providers of minimum essential coverage to report information about the healthcare coverage they provided to individuals. The form reports information about the type of coverage, the months of coverage, and the individuals covered.
Insurers and providers of minimum essential coverage are required to furnish Form 1095-B to individuals by January 31st of each year, and to file the form with the IRS by February 28th (or March 31st if filing electronically).
Form 1095-C: Employer-Provided Health Insurance Offer and Coverage
Form 1095-C is used by employers with 50 or more full-time employees to report information about the health insurance coverage they offered to their employees. The form reports information about the type of coverage offered, the months of coverage, and the employees who were offered coverage.
Employers are required to furnish Form 1095-C to their employees by January 31st of each year, and to file the form with the IRS by February 28th (or March 31st if filing electronically).
Importance of Forms 1095-A, 1095-B, and 1095-C
Forms 1095-A, 1095-B, and 1095-C are important for individuals and employers because they provide proof of healthcare coverage, which is required under the Affordable Care Act. Individuals who do not have proof of healthcare coverage may be subject to a penalty when filing their tax return.
Employers who fail to provide Form 1095-C to their employees or file the form with the IRS may be subject to penalties, including fines and penalties under the Affordable Care Act.
Frequently Asked Questions
What is the purpose of Form 1095-A?
Form 1095-A is used to report information about healthcare coverage provided through the Health Insurance Marketplace.
Who is required to provide Form 1095-B?
Insurers and providers of minimum essential coverage are required to provide Form 1095-B to individuals and file the form with the IRS.
What is the difference between Form 1095-B and Form 1095-C?
Form 1095-B is used to report information about healthcare coverage provided by insurers, while Form 1095-C is used to report information about healthcare coverage offered by employers.
When are Forms 1095-A, 1095-B, and 1095-C due?
Forms 1095-A, 1095-B, and 1095-C are due to individuals by January 31st of each year, and to the IRS by February 28th (or March 31st if filing electronically).
What happens if I don't receive Form 1095-A, 1095-B, or 1095-C?
If you don't receive Form 1095-A, 1095-B, or 1095-C, you should contact the issuer of the form (e.g. the Health Insurance Marketplace or your employer) to request a copy.
Can I use Form 1095-A, 1095-B, or 1095-C to claim a tax credit?
Yes, you can use the information on Form 1095-A to claim the premium tax credit on your tax return, and you can use the information on Form 1095-B or 1095-C to prove you had healthcare coverage and avoid a penalty.