Did You Know You Need to File a Special Health Insurance Report on Your Taxes?
You are probably starting to receive at least one of these forms if you are insured. But what are you to do with them? And why are you receiving this form?
These forms are used to reconcile the offerings of benefits, via the Marketplace, insurers, and applicable large employers.
The forms were supposed to be filed and out by January 31st in order to file with your 2015 tax return, along with your W-2. But there was another delay by the ACA. The deadline is now March 31, 2016. All parties are working to get these forms to you! Keep an eye on your mailbox.
So what is the difference in these forms?
1095-A: Health Insurance Marketplace Statement
If you bought health insurance through one of the Health Care Exchanges, also known as Marketplaces, you will receive a Form 1095-A, which provides information about your insurance policy, your premiums (the cost you pay for insurance) and the people in your household covered by the policy.
1095-B: Health Coverage
Form 1095-B is a health insurance tax form which reports the type of coverage you have, dependents covered by your insurance policy, and the period of coverage for the prior year. This form is used to verify on your tax return that you and your dependents have at least minimum qualifying health insurance coverage. If you had a break in health care coverage for the tax year, you may have to pay an individual shared responsibility payment, also known as a tax penalty.
1095-C: Employer Provided Health Insurance
The Affordable Care Act, or Obamacare, requires certain employers to offer health insurance coverage to full-time employees and their dependents. Further, those employers must send an annual statement to all employees eligible for coverage describing the insurance available to them. The Internal Revenue Service (IRS) created Form 1095-C to serve as that statement. This is required for all Applicable Large Employers (ALE’s), or employers with 50+ full time employees.
Depending on the size of your employer, you might receive multiple forms. Most commonly, self-insured employers send out 1095-B and 1095-C. Make sure you keep all the forms you receive, and file with your tax advisor.