1095-C Form: Educating Employees and Filing Extensions
Common 1095-C form questions
We’ve been hearing a lot of questions about 1095-C forms, including the following:
- Do employees need to submit Form 1095-C with their taxes?
- Will an extension affect the employee’s ability to file taxes?
- What is the impact on employers who request an extension for sending 1095-C forms?
We answered: instructions for employees
An employee must either:
1) Have qualifying health care coverage for every month of that filing year for their self, their spouse (if filing jointly), and anyone they can or do claim as a dependent, (the employee is treated as having coverage for any month in which they have coverage for at least 1 day of the month),
2) Qualify for an exemption from the requirement to have health care coverage, or
3) Make a shared responsibility payment with their tax return and enter that amount in the appropriate section of the form.
Employees do NOT need to submit Form 1095-C to the IRS with their taxes. If an employee had qualifying healthcare coverage (called minimum essential coverage) for every month of the year for themselves, their spouse (if filing jointly), and anyone you can or do claim as a dependent, they would check the box on their tax return on the line “Health care: individual responsibility (see instructions)” and leave the entry space blank.
1095 Forms – A health coverage guide
If you had minimum essential coverage , the provider of that coverage is required to send you a Form 1095-A, 1095-B, or 1095-C that lists you and any individuals in your family who were enrolled in the coverage and shows the months of coverage. Here is an explanation of the different forms.
Individuals enrolled in health insurance coverage through the Marketplace generally receive this information on Form 1095-A, Health Insurance Marketplace Statement.
Those enrolled in a government-sponsored health program or in other types of coverage generally receive this information on Form 1095-B, Health Coverage, along with some individuals enrolled in health insurance coverage provided by their employer.
Other individuals who have received health coverage provided by their employer should receive this information on Form 1095-C, Employer-Provided Health Insurance Offer and Coverage.
Even if you don’t receive a form with this information, you may have had minimum essential coverage for some or all of the year.
How a 1095-C Form extension affects employees and tax filing
Waiting for the 1095-C may help employees who are unsure whether they had health insurance for the full year or unsure whether their employer offered “minimum essential coverage.” Those employees who are unsure may benefit from waiting until they receive their informational Form 1095-C to file their taxes.
Here are links to the draft 1040, 1040A, and 1040EZ forms from the IRS:
1040 (See line 61)
1040A (See line 38)
1040EZ (See line 11)
The impact for employers
Employers may struggle to gather the necessary data for completion of the 1095-C forms by the IRS deadlines. However; the IRS provided the opportunity to request an extension for mailing 1095-C forms to employees. The request must be made in writing, with a reason for the request.
Have questions? Learn about our comprehensive ACA Compliance & Reporting Solution or Contact Us.
Categorized in: ACA