Entering Form 1095-C information into TurboTax can seem like a daunting task, but rest assured, it's often much simpler than you think! While the form itself contains a lot of detailed information, you typically don't directly "enter" the entire 1095-C into TurboTax in the same way you might a W-2 or 1099. Instead, TurboTax asks you specific questions about your health insurance coverage throughout the year, and you use your 1095-C as a reference to answer those questions accurately.
Let's break down how to handle your 1095-C with TurboTax, step by step.
Navigating Your 1095-C and TurboTax: A Step-by-Step Guide
Step 1: Do You Even Need to Do Anything with Your 1095-C? Let's Find Out!
Before you even open TurboTax, take a moment to understand what Form 1095-C is and if it impacts your taxes. This form, "Employer-Provided Health Insurance Offer and Coverage," is provided by Applicable Large Employers (ALEs) – generally, employers with 50 or more full-time employees. It reports information about the health coverage offered to you by your employer, and if applicable, whether you enrolled in a self-insured plan.
Here's the crucial part: For most people, you DO NOT need to directly enter your 1095-C into TurboTax or attach it to your tax return. The IRS primarily uses the information from the 1095-C to verify your health coverage.
However, there are specific scenarios where the information on your 1095-C becomes important for your tax filing:
If you purchased health insurance through the Health Insurance Marketplace (Healthcare.gov or your state's exchange) AND also received an offer of employer-sponsored coverage: In this case, the information on your 1095-C is critical for determining your eligibility for the Premium Tax Credit (PTC). If your employer offered you "affordable" and "minimum value" coverage, you might not be eligible for the PTC you received from the Marketplace, and you may have to repay some or all of it.
If your employer provided self-insured health coverage: Part III of the 1095-C will be filled out, listing the individuals covered under the plan. While you still don't "enter" this directly, it serves as a record of who was covered.
So, before proceeding, ask yourself: Did I get health insurance exclusively through my employer (and NOT through the Marketplace)? If the answer is yes, then in most cases, you simply need to keep your 1095-C for your records and move on. You'll likely just check a box in TurboTax confirming you had health insurance all year.
If you did use the Marketplace, or if you're unsure, continue to the next steps.
Step 2: Accessing the Health Insurance Section in TurboTax
Once you've determined you need to reference your 1095-C, here's how to navigate TurboTax to input the relevant information.
Sub-heading 2.1: Starting Your Return or Navigating to Health Insurance
Log in to your TurboTax account or open your desktop software.
Begin working on your federal tax return.
You'll typically find the health insurance section under a main category like "Deductions & Credits" or "Health & Medical." The exact wording might vary slightly depending on your TurboTax version (Online, Desktop, Premier, Deluxe, etc.) and the tax year.
Sub-heading 2.2: Finding the Right Questions
As you progress through the health insurance section, TurboTax will ask you a series of questions about your coverage. This is where your 1095-C comes in handy.
TurboTax will usually start by asking, "Did you have health insurance coverage in [Tax Year]?" Answer Yes.
It will then ask about the type of health insurance you had. This is where it differentiates between employer-sponsored plans, Marketplace plans (which come with Form 1095-A), Medicare, Medicaid, etc.
Select the option that best describes your situation. If you had employer-sponsored coverage, you'll choose that.
Step 3: Answering TurboTax's Questions Using Your 1095-C
This is where you'll refer to specific sections of your Form 1095-C.
Sub-heading 3.1: Information from Part I (Employee and Employer Information)
TurboTax might ask for some basic information about your employer and yourself. This information is found in Part I of your 1095-C.
Your Name and SSN: (Lines 1-2 on Form 1095-C) – This should already be pre-filled or easy to input.
Employer's Name, EIN, and Address: (Lines 7-9 on Form 1095-C) – TurboTax may ask for this, especially if it's the first time you're entering employer-provided health information.
Sub-heading 3.2: Information from Part II (Employee Offer of Coverage)
This is the most critical part of your 1095-C if you also had Marketplace coverage and received the Premium Tax Credit.
Line 14: Offer of Coverage (Codes): TurboTax might ask about the type of coverage offered to you and your family. You'll find a code (e.g., 1A, 1B, 1C, etc.) in Box 14 for each month. These codes are crucial. TurboTax uses these codes to determine if the coverage offered by your employer was considered "minimum essential coverage" (MEC) and if it met "minimum value" standards.
For example, Code 1A generally means your employer offered MEC providing minimum value to you, your spouse, and dependents, and the employee contribution was affordable.
Line 15: Employee Required Contribution: If TurboTax asks about the cost of your lowest-cost self-only coverage, this is the amount you'll find in Box 15 for each month. This figure is used to determine if the employer's offer was "affordable" for you, based on your household income.
Line 16: Section 4980H Safe Harbor and Other Relief (Codes): TurboTax may also inquire about the codes in Box 16. These codes explain why the employer may or may not have offered coverage, or if a safe harbor applied. For instance, code 2C indicates an employee enrolled in coverage, while 2B indicates the employee was not a full-time employee.
Important Note: If you received a Form 1095-A from the Marketplace, TurboTax will have a separate section specifically for entering that information (which is used to reconcile your Premium Tax Credit on Form 8962). The 1095-C information will be used in conjunction with your 1095-A data to ensure proper reconciliation.
Sub-heading 3.3: Information from Part III (Covered Individuals - Self-Insured Plans Only)
If your employer offered a self-insured health plan, Part III of your 1095-C will list all individuals (including yourself, spouse, and dependents) who were covered, along with the months of coverage.
TurboTax might ask you to confirm who was covered and for which months. You'll use Part III of your 1095-C to verify this information.
Again, you're not typing every name and SSN from this section directly into a dedicated form within TurboTax, but rather answering prompts that confirm your coverage details.
Step 4: Review and Verification
After answering all the relevant health insurance questions, TurboTax will summarize your entries.
Carefully review the information you've entered. Ensure that the months of coverage, the types of coverage, and any cost contributions match what's on your 1095-C.
If you have a 1095-A in addition to a 1095-C, make sure both sets of information are considered. TurboTax is designed to reconcile these forms automatically.
If anything looks incorrect, go back and adjust your answers.
Step 5: Keep Your 1095-C for Your Records!
Once you've successfully navigated the health insurance section in TurboTax, you're done! Do not mail your 1095-C with your tax return. Simply file it away with your other important tax documents. The IRS already receives a copy of your 1095-C directly from your employer.
Related FAQ Questions
Here are 10 frequently asked questions about Form 1095-C and TurboTax, along with quick answers:
How to know if I need Form 1095-C for my taxes?
You need to reference Form 1095-C if you had employer-provided health insurance, especially if you also used the Health Insurance Marketplace and received a Premium Tax Credit. Otherwise, it's mostly for your records.
How to find the health insurance section in TurboTax?
In TurboTax, look under "Deductions & Credits" or search for "health insurance" or "1095-C" in the search bar.
How to enter information from Part I of Form 1095-C into TurboTax?
TurboTax may ask for your employer's name, EIN, and address, which are found in Part I of your 1095-C. Your personal information should already be there.
How to use Line 14 codes from Form 1095-C in TurboTax?
TurboTax will ask about the type of coverage offered. You'll select the option that corresponds to the code(s) on Line 14 of your 1095-C for each month.
How to use Line 15 (Employee Required Contribution) from Form 1095-C in TurboTax?
If TurboTax asks for the cost of the lowest-cost self-only coverage, enter the amount from Line 15 of your 1095-C. This helps determine affordability.
How to use Part III (Covered Individuals) from Form 1095-C in TurboTax?
If your employer has a self-insured plan, Part III lists covered individuals. TurboTax might ask you to confirm who was covered and for which months, using this section as your guide.
How to handle multiple 1095-C forms in TurboTax?
If you received multiple 1095-C forms from different employers, TurboTax will guide you through entering information for each employer's coverage separately.
How to proceed if I only have a 1095-C and no 1095-A?
If you only have a 1095-C and did not use the Marketplace, you typically just confirm you had health insurance coverage for the year in TurboTax and keep the 1095-C for your records.
How to reconcile a 1095-C with a 1095-A in TurboTax?
TurboTax automatically reconciles these. You'll enter your 1095-A information in a separate section (which populates Form 8962), and the 1095-C data helps TurboTax determine if your employer's offer affects your Premium Tax Credit eligibility.
How to get help if my 1095-C information seems wrong?
If you believe there's an error on your 1095-C, contact your employer's HR or benefits department directly to request a corrected form. Do this before filing your taxes if possible.