Form 1095-C

Form 1095-C is a form that large employers use in the United States to report on the health insurance they provide to their employees. It is part of the Affordable Health Care Act (ACA) and provides information that individuals need to report their insurance status on their federal tax return.

The Form 1095-C:

Purpose:

• Inform employees of the health insurance benefits offered by their employers.
• Help the IRS determine if you and your dependents are covered by minimum essential coverage.

Who receives it?

• Form 1095-C will be sent to all large employers who are required to file it (including those with 50 full-time and full-time equivalent employees).

Components:

• Part 1: Information about the employee and employer (names, addresses, and Employer Identification number).
• Part 2: Information about the coverage, including how many months it is available.
• Part 3: Information on covered individuals, including names and months covered.

Filing requirements

• ALEs are required to file Form 1095-C with the IRS along with Form 1094-C (the transmittal forms) by the specified deadlines, which are typically early March for paper submission and mid-April for electronic filing.
• The employer must also give a copy to each employee by the 31st of January of the next tax year.

Use in tax filing

• The form does not have to be included with your tax return. However, you may need it to fill out Form 1040 or to claim tax credits for premiums.

Importance of Form 1095-C:

Employees and employers must understand IRS Form 1095-C to ensure compliance with the ACA’s requirements for health coverage.

Also, See: Form 1040-ES | Form 1099-SA | Form 5498-SA | Form 8109 | Form 8233 | Form 8832 | Form 940 | Form 942 | I-9 Form | Form 1094-C