The Tax Cuts and Jobs Act eliminated the requirement for individuals to have health coverage. Employers, however, are still required to offer coverage to their full time employees. Employees may be confused when they receive their Form 1095 this year, and they may have questions about what the form means now that there is no more individual mandate.
Refer to the list below for answers to some common questions.
Q.- What is Form 1095-C?
A.- Form 1095-C is used by employers with 50 or more full-time employees to report information required under the Affordable Care Act about offers of health coverage and enrollment in health coverage.
Q.- What is Form 1095-B?
A.- Form 1095-B is used by insurers/coverage providers and certain employers with self-funded health plans to report information to the IRS and to taxpayers about individuals who are covered under a health plan.
Q.- I thought the ACA requirement to have health insurance was repealed. Do I still need form 1095?
A.- The requirement to have health coverage was in place during 2017. You will still have to report on your 2017 income tax return whether you had coverage in 2017.
Q.- Why am I receiving Form 1095-C?
A.- You may be receiving Form 1095-C for different reasons. You could be receiving the form because
- You are a full-time employee under the Affordable Care Act and your employer is considered an applicable large employer;
- You and/or your dependents have health coverage from your employer and your employer is required to report that coverage on Form 1095-C;
- You were offered health coverage from your employer.
Q.- Why am I receiving Form 1095-B?
A.- You may be receiving Form 1095-B for different reasons. You could be receiving the form because
- You and/or your dependents have coverage under your employer’s health plan and your employer is required to report that coverage on Form 1095-B;
- You and/or your dependents have health coverage from an insurer/ plan sponsor/ coverage provider required to report that coverage on Form 1095-B.
Q.- What do the codes mean on Line 14 of Form 1095-C?
A.- Line 14 codes specify the type of coverage, if any, offered to an employee, the employee’s spouse, and the employee’s dependents.
Q.- What do the codes mean on Line 16 of Form 1095-C?
A.- You may or may not have a code in Line 16. Line 16 codes are used by employers to provide information to the IRS about why coverage was or was not offered to an individual.
Q.- What is the dollar amount on Line 15 of Form 1095-C?
A.- Line 15 shows the employee-share of the monthly cost for the lowest-cost, self-only minimum essential coverage providing minimum value that your employer offers to you.
Q.- I pay more for coverage than the dollar amount on Line 15. Is my Form wrong?
A.- The amount entered on Line 15 may or may not be the amount you pay for coverage. For example, if you chose to enroll in more expensive coverage such as family coverage or a different tier coverage, the amount on Line 15 will not reflect the amount you pay for coverage. The form is only reporting the cost of the lowest-cost plan offered to you (whether you enroll in that plan or not).
Q.- What do I have to do with my 1095 Form?
A.- You should keep your Form 1095 as you do with other important tax records.
Q.- Do I have to attach my Form 1095 to my IRS 1040 tax return?
A.- No. You do not attach Form 1095 to your tax return. You just need to keep it for your records.
Q.- I have health coverage from my employer but the coverage in not showing on Part III of Form 1095-C. Why?
A.- If you are covered by an insured health plan or if your coverage provider is acting as a plan sponsor/insurer, you will likely receive your coverage information on Form 1095-B from the insurer/plan sponsor/coverage provider. Your coverage information will not be reported on Form 1095-C.
