All About IRS Forms 1095-A, B & C
Unless you've been living under a rock, you'll know that provisions of the Affordable Care Act (ACA, health care reform law, Obamacare, etc.) have been slowly going into effect over the past few years. Beginning this year, the provision that requires health care providers and individuals alike to report on coverage went into effect for coverage offered or received in 2015. Unsurprisingly, many individuals are unsure of what exactly their responsibilities are when it comes to providing proof of coverage, or how they're going to get ahold of the information about their health care coverage that they'll need to fill out their tax returns.
If you're one of the millions of Americans stuck in this dilemma, don't fret! We've compiled a list of frequently asked questions to help you understand the forms you'll use to fill out your tax returns this year.
Will I receive any new health care tax forms in 2016 to help me complete my tax return
Starting in early 2016, you may receive one or more forms providing information about the health care coverage that you had or were offered during the previous year. Much like Form W-2 and Form 1099, which include information about the income you received, these new health care forms provide information that you may need when you file your individual income tax return. Also, like Forms W-2 and 1099, these new forms will be provided to the IRS by the entity that provides the form to you.
Below is a brief description of each form:
- Form 1095-A, Health Insurance Marketplace Statement. The Health Insurance Marketplace (Marketplace) sends this form to individuals who enrolled in coverage there, with information about the coverage, who was covered, and when.
- Form 1095-B, Health Coverage. Health insurance providers (for example, health insurance companies) send this form to individuals they cover, with information about who was covered and when.
- Form 1095-C, Employer-Provided Health Insurance Offer and Coverage. Certain employers send this form to certain employees, with information about what coverage the employer offered. Employers that offer health coverage referred to as “self-insured coverage” send this form to individuals they cover, with information about who was covered and when.
How will I know which forms to expect to receive?
If you were enrolled in health coverage for 2015, you should receive a Form 1095-A, 1095-B or 1095-C. If you were an employee of an employer that was an applicable large employer in 2015, you may receive a Form 1095-C. If you don’t fall in either of these categories, you won’t receive a form.
If you had coverage from more than one coverage provider or if you worked for more than one employer that offered coverage in 2015, you are likely to get more than one of these health care tax forms. You may also receive more than one form if you changed coverage or employers during the year or if different members of your family received coverage from different coverage providers.
When will I receive these health care tax forms?
The deadline for the Marketplace to provide Form 1095-A is Feb. 1, 2016. The deadline for insurers, other coverage providers and certain employers to provide Forms 1095-B and 1095-C has been extended to March 31, 2016. Individual taxpayers will generally not be affected by this extension and should file their returns as they normally would.
Some taxpayers may not receive a Form 1095-B or Form 1095-C by the time they are ready to file their 2015 tax returns. While the information on these forms may assist in preparing a return, they are not required. Individual taxpayers will generally not be affected by this extension and should file their returns as they normally would. Like last year, taxpayers can prepare and file their returns using other information about their health insurance. You should not attach any of these forms to your tax return.
How will I receive these forms?
The Marketplace, health coverage providers and applicable large employers will mail (or hand deliver) these forms to you or provide them electronically to you, if you have consented to electronic delivery.
What do I need to do if I receive one of these forms?
You will use the information on these forms to verify that you, your spouse and any dependents had coverage for each month during the year.
Like last year, if you and your family members had minimum essential coverage for every month of the year, you will check a box on your return to report that coverage. If you or any family members did not have coverage for the entire year, a coverage exemption may apply for the months without coverage. If you or any family members did not have coverage or an exemption, you may have to make an individual shared responsibility payment.
If you or anyone in your family receives a Form 1095-A from the Marketplace, you will use the information on the form to complete a Form 8962 to reconcile any advance payments of the premium tax credit or to claim the premium tax credit.
Do not file these forms with your tax return. Keep them in your records with your other important tax documents.
Who should I contact if I have questions these forms?
If you have questions about any of these forms, you should contact the provider of the form (or the entity that you think should have provided you a form, if you think you should have received a form but did not get it).
For questions about the Form 1095-A, contact the Marketplace. For questions about the Form 1095-B, contact the coverage provider (see Line 18 of the Form 1095-B for a contact telephone number). For questions about the Form 1095-C, contact your employer (see Line 10 of Form 1095-C for a contact telephone number).
If you're a business owner, you'll know that complying with all the provisions and reporting requirements of the Affordable Care Act can be a difficult process. G&A Partners makes that process easier. Interested in learning more about G&A's ACA compliance support solutions for businesses? Call 1-866-634-6713 to speak to our health care experts or schedule a free business consultation.
This article is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice.