Q.- What are employees supposed to do with the Form 1095 we distributed to them?
A.- IRS Form 1095-C shows an employer’s offer of health coverage (or not) for each month of the tax year and in some circumstances documents actual health coverage. Form 1095-B is issued by an insurance company or health coverage provider to reflect an individual’s coverage during the year.
In most circumstances, no action needs to be taken with the Form 1095 and it is only for the individual’s personal information. In states that require residents to have health coverage, the Form may be used to document coverage and could need to be attached to a state tax return. Employees should consult their tax advisors to see if any action needs to be taken with the 1095 form.