Tax season is upon us. You might have received one or more 1095 forms concerning the health care coverage you had or were offered during the previous year. These forms are similar to W-2 and 1099 forms. Your healthcare provider should send them to you. It provides the information you may need when filing your individual income tax return.
The purpose of reporting this is to show the IRS that affordable coverage was offered to employees. It also shows which employees and dependents are covered and which were not. These forms also result in the penalization of companies who don’t offer coverage.
Defining Each 1095 Form
There are 3 forms of 1095; Forms A, B, and C.
- 1095-A is sent by the Health Insurance Marketplace to individuals who enrolled in coverage there, with information about the coverage, when, and who was covered. They are supposed to be sent by January 31. For questions about this form, contact the Marketplace.
- 1095-B is sent by Health insurance providers (for example, health insurance companies) to individuals covered by them, with information on who was covered and when. The deadline for them to be sent was extended to March 2. For questions about this form, contact the coverage provider.
- 1095-C is sent by employers to certain employees, with information about what coverage the employer offered, when the employer offered “self-insured” coverage. The deadline for them to be sent was extended to March 2. For questions about this form, contact your employer.
Exceptions
In some cases, a taxpayer may not receive a Form 1095-B or Form 1095-C by the time they are ready to file their 2016 tax returns. Under these circumstances, the Internal Revenue Service (IRS) will accept other forms of documentation for proof of coverage. Those acceptable forms include:
- W-2 or payroll statements reflecting insurance deductions
- Explanation of benefits
- Insurance cards
- Records or payments of the premium tax credit and other statements indicating that the taxpayer or a member of the family had health benefits
What You Need to Do
If you’re expecting a Form 1095-A, you should wait to receive it before filing your 2016 income tax return. However, it is not necessary to wait for Forms 1095-B or 1095-C. They are usually sent by mail but can be done electronically too. Some taxpayers may not receive those two forms during filing because it is not required.
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. You shouldn’t file these forms with your tax return; rather keep them for your records.
Insurance sales offices are unable to request copies of these forms to be sent to agents or groups. If you have questions about a form, you should call the customer service number on the back of your ID card.
Sources
- Producer News. News.Anthem.com
- Questions and Answers About Health Care Information Forms for Individuals. https://www.irs.gov/affordable-care-act/questions-and-answers-about-health-care-information-forms-for-individuals
