This is a crucial topic for many individuals during tax season! Let's clear up the common confusion around Form 1095-C and how it interacts with your personal tax filing.
Unraveling Form 1095-C: Your Guide to Health Coverage and Tax Season
Are you holding a Form 1095-C in your hand and wondering, "What am I supposed to do with this?" You're not alone! This form, related to your health insurance coverage, often sparks questions for taxpayers. Unlike some other tax documents you receive, your Form 1095-C typically doesn't need to be submitted directly to the IRS by you, the individual. However, it's still a very important document that plays a role in your tax obligations under the Affordable Care Act (ACA).
Let's break down everything you need to know about your Form 1095-C, why you receive it, and what you should do with it.
Step 1: Understand What Form 1095-C Is (and Isn't!)
Before we dive into the "how-to," let's clarify the purpose of this form.
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| How Do I Submit My 1095 C To The Irs |
What is Form 1095-C?
Form 1095-C, titled "Employer-Provided Health Insurance Offer and Coverage," is a tax document that provides information about the health coverage offered to you by your employer. It's issued by "Applicable Large Employers" (ALEs) – generally, employers with 50 or more full-time employees (including full-time equivalent employees) in the previous calendar year.
This form serves two main purposes:
- For You, the Employee: It provides details about the health insurance coverage that was offered to you (and your family, if applicable) by your employer for each month of the tax year. This information can be vital if you need to reconcile a premium tax credit you received through a Marketplace plan, or if the IRS has questions about your health coverage.
- For the IRS: It helps the IRS verify that large employers are complying with the Affordable Care Act's employer shared responsibility provisions (also known as the "employer mandate") and determines if employees were eligible for premium tax credits.
What Form 1095-C is NOT:
It's crucial to understand that for most individuals, Form 1095-C is NOT a form you submit directly to the IRS with your tax return. Think of it as an informational statement, much like your W-2 or 1099 forms, but with a different purpose.
Tip: Don’t just scroll to the end — the middle counts too.
Step 2: Why You Received a Form 1095-C
If you've received a Form 1095-C, it's because your employer is an Applicable Large Employer (ALE) and was required to report your health coverage information to the IRS and provide a copy to you.
Who receives a 1095-C?
You'll generally receive a Form 1095-C if you were a full-time employee of an Applicable Large Employer for any month of the calendar year, even if you declined the coverage offered or were only employed for part of the year. If your employer offers a self-insured health plan, they must also provide a Form 1095-C to any employee (and their covered family members) who enrolled in the plan, regardless of their full-time status.
Step 3: What to Do with Your Form 1095-C (The Individual's Role)
Now that you understand what it is, let's get to the practical steps.
Keep it for Your Records
The most important thing you need to do with your Form 1095-C is to keep it with your other important tax documents. This includes your W-2s, 1099s, and any other statements related to your income and deductions. The IRS recommends keeping tax records for at least three years from the date you file your return.
Why is it important to keep it?
- Verification: While you generally don't attach it to your return, the information on your 1095-C confirms whether you had minimum essential coverage (MEC) for the year. This was particularly important when there was an individual mandate penalty, though for federal purposes, that penalty has been reduced to $0 since 2019. However, some states may still have their own individual mandates.
- Premium Tax Credit Reconciliation: If you or a family member received a premium tax credit to help pay for health insurance purchased through a Health Insurance Marketplace, the information on your Form 1095-C is critical. You'll use this information, along with Form 1095-A (from the Marketplace), to complete Form 8962, Premium Tax Credit (PTC), to reconcile the amount of premium tax credit you received in advance with the actual credit you qualify for based on your income. If your employer offered you affordable, minimum value coverage, you may not be eligible for the premium tax credit, and you might have to repay some or all of the credit you received.
- Future Reference: In case the IRS has questions about your health coverage in the future, having this form readily available will help you provide the necessary documentation.
Do NOT send it to the IRS
Unless specifically requested by the IRS for an audit or inquiry, you, as an individual, do not need to mail your Form 1095-C to the IRS. Your employer is responsible for submitting these forms to the IRS directly.
Step 4: Understanding the Information on Form 1095-C
Familiarizing yourself with the different sections of the form can help you understand your health coverage situation.
Tip: Every word counts — don’t skip too much.
Part I: Employee and Applicable Large Employer Member
This section contains basic identification information for you (the employee) and your employer, including names, addresses, and identifying numbers (Social Security Number for you, Employer Identification Number for your employer).
Part II: Employee Offer of Coverage
This is a very important part of the form. It details the health coverage offered to you by your employer on a month-by-month basis. Key elements here include:
- Line 14 (Offer of Coverage): This line uses codes (e.g., 1A, 1B, 1C, etc.) to indicate the type of coverage offered to you and your family, or if no coverage was offered.
- Line 15 (Employee Required Contribution): This shows the employee's share of the lowest-cost monthly premium for self-only minimum value coverage. This figure is crucial for determining if the coverage offered was "affordable" according to ACA guidelines.
- Line 16 (Applicable Section 4980H Safe Harbor and Other Relief): This line uses codes to explain why coverage might not have been offered, or if a specific relief provision applies.
Part III: Covered Individuals (Self-Insured Plans Only)
If your employer has a self-insured health plan, this section will list the individuals covered under that plan, including you and any enrolled dependents. It will also indicate the months each person was covered. If your employer offers coverage through an insured plan (like through a health insurance company), this section will likely be blank.
Step 5: What if You Don't Receive a 1095-C or There's an Error?
Sometimes, things don't go as planned. Here's what to do in those situations.
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If You Haven't Received Your Form
Employers are generally required to furnish Form 1095-C to employees by January 31st of the year following the calendar year to which the information relates. However, the IRS often provides an automatic extension, moving the due date to early March.
- Contact Your Employer: Your first step should always be to contact your employer's HR or benefits department. They are the ones who issue this form and can provide you with a copy.
- Don't Delay Your Tax Filing: In most cases, you don't need to wait for your Form 1095-C to file your tax return, especially if you already know whether you had health coverage for each month of the year. However, if you're reconciling a Premium Tax Credit, you will need accurate information from both your 1095-A and 1095-C.
If There's an Error on Your Form
If you receive your Form 1095-C and notice an error (e.g., incorrect name, SSN, or coverage information), contact your employer immediately. They are responsible for issuing a corrected Form 1095-C. They will send you a corrected form and also submit the corrected information to the IRS.
QuickTip: Treat each section as a mini-guide.
Step 6: Understanding the Broader Context (The Employer's Submission)
While you, as an individual, generally don't submit Form 1095-C, it's helpful to understand the employer's responsibility in the submission process.
Employers File with Form 1094-C
Applicable Large Employers (ALEs) do submit Forms 1095-C to the IRS. They do so along with Form 1094-C, which is a "Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns." Form 1094-C acts as a cover sheet, providing summary information about the employer and transmitting all the individual 1095-C forms to the IRS.
Electronic vs. Paper Filing for Employers
- Electronic Filing: The IRS strongly encourages electronic filing and requires it for employers filing 10 or more information returns (which includes 1095-C forms). The electronic filing deadline is typically March 31st of the year following the calendar year.
- Paper Filing: Employers filing fewer than 10 information returns may file on paper. The paper filing deadline is typically February 28th of the year following the calendar year.
Due Dates to Remember (For Employers - But Good for You to Know!)
- To Employees: Form 1095-C must be furnished to employees by January 31st (though often extended to early March) of the year following the calendar year.
- To IRS (Paper): By February 28th of the year following the calendar year.
- To IRS (Electronic): By March 31st of the year following the calendar year.
Conclusion: Your 1095-C is a Record, Not a Requirement to Mail
In summary, for most individuals, your Form 1095-C is a record-keeping document that informs you about the health coverage offered by your employer. You do not typically submit it to the IRS with your tax return. However, it's an important piece of your tax puzzle, especially if you interact with the Health Insurance Marketplace and receive premium tax credits. Always keep it with your tax records, and don't hesitate to reach out to your employer if you have questions or need corrections.
10 Related FAQ Questions
Here are 10 frequently asked questions about Form 1095-C, designed to start with "How to" for quick, actionable answers:
How to use Form 1095-C when filing my taxes?
You generally don't directly use Form 1095-C to file your taxes by attaching it. Its primary use for individuals is to verify your health coverage information, especially if you need to reconcile a premium tax credit on Form 8962. Keep it for your records.
How to get a copy of my 1095-C if I haven't received it?
Contact your employer's HR or benefits department directly. They are responsible for issuing and providing you with your Form 1095-C.
QuickTip: Scroll back if you lose track.
How to correct an error on my Form 1095-C?
Reach out to your employer immediately. They must issue a corrected Form 1095-C to you and submit the corrected information to the IRS.
How to file my taxes if I haven't received my 1095-C yet?
In most cases, you don't need to wait for Form 1095-C to file your tax return if you already know whether you had health coverage for each month of the year. However, if you received a premium tax credit, you will need the accurate information from Form 1095-C (and 1095-A) to complete Form 8962.
How to know if my employer is an Applicable Large Employer (ALE)?
Generally, an employer is an ALE if they had 50 or more full-time employees (including full-time equivalent employees) on average during the previous calendar year. If you received a Form 1095-C, your employer is an ALE.
How to reconcile a Premium Tax Credit using Form 1095-C?
If you received advance premium tax credits, you'll use information from your Form 1095-A (from the Marketplace) and potentially your Form 1095-C (from your employer) to fill out Form 8962, Premium Tax Credit (PTC), to determine your final premium tax credit amount.
How to understand the codes on my Form 1095-C?
The IRS provides instructions for Form 1095-C that explain the various codes used in Part II, specifically on lines 14, 15, and 16. You can find these instructions on the IRS website.
How to store my Form 1095-C for record-keeping purposes?
Keep your Form 1095-C with your other important tax documents, such as your W-2s and 1099s, in a secure location. The IRS generally recommends keeping tax records for at least three years.
How to know if my Form 1095-C indicates I had "affordable" coverage?
You can generally determine if your employer's offer of coverage was considered "affordable" by looking at the amount on Line 15 (Employee Required Contribution) in relation to your household income. The IRS provides affordability percentages (which change annually) that you can compare this amount to.
How to get more information directly from the IRS about Form 1095-C?
Visit the official IRS website (IRS.gov) and search for "Form 1095-C" or "Affordable Care Act (ACA)" for the most accurate and up-to-date guidance and instructions.
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