Why Did I Get this Form 1095? New ACA Info Statements

Your Guide to State, Local, Federal, Estate + International Taxation

This January many individuals will receive a Form 1095 for the first time. Form 1095 is part of the expanding ACA (Affordable Care Act) information reporting necessary to determine if you had required health insurance coverage in 2015:

The IRS wants you to know these important facts about Form 1095:

  • While the information on these forms may help you complete your tax return, they are not needed to file. You can file your federal tax return even if you have not received one of these statements.
  • Form 1095-B, Health Coverage, is used by insurers to report certain information to the IRS and to taxpayers about individuals who are covered by health insurance (minimum essential coverage).
  • Form 1095-C, Employer-Provided Health Insurance Offer and Coverage is used by employers with 50 or more full-time employees or employers with employer-sponsored self-insured coverage to report the information required about offers of health insurance coverage and enrollment in health coverage for their employees.
  • Information on Form 1095-B or Form 1095-C will be used by the IRS to determine if you had required health insurance (minimum essential coverage) and, therefore, aren’t liable for the” no insurance penalty” (the individual shared responsibility payment), unless you qualify for one of the Health Coverage Exemptions.
  • For 2015 only, individuals who rely on other information received from employers about their offers of medical insurance coverage for purposes of determining eligibility for the premium tax credit when filing their income tax returns don’t have to amend their returns once they receive the actual Forms 1095-C, or any corrected Forms 1095-C.
  • Individuals who worked for multiple employers that are required to file Form 1095-C may receive a Form 1095-C from each employer.
  • In general, 1095-B and 1095-C must be sent on paper by mail or hand delivered, unless you consent to receive the statement in an electronic format.

Additional information is available at irs.gov/Affordable-Care-Act/Individuals-and-Families.

By Melinda Nelson, CPA