In 2016, if you work for an organization with 50 or more full-time (equivalent) employees you’ll receive a Form 1095-C from your employer by March 2nd. Coastal Payroll is here to help guide you through what’s next.
What is Form 1095-C?
Organizations that employ more than 50 people are required to report to the IRS on the health insurance, if any, offered to their full-time employees. The Form 1095-C includes information about the health insurance coverage offered to you and, if applicable, your family.
Form 1095-C does not need to be filed with your taxes, however, you may need information from the form as part of your personal tax filing for 2016 so we suggest retaining the form for reference.
What to do now?
Keep this form with the materials you give to your tax preparer. If you prepare your own taxes, you may need to refer to this information as you prepare your return.
In some instances, you may also receive a Form 1095-B from your insurance carrier that will contain information similar to Form 1095-C. You may receive multiple Form 1095-Cs if you worked for multiple applicable large employers in the previous calendar year.
Frequently Asked Questions
First, What is the Affordable Care Act?
The Affordable Care Act is a long, complex piece of legislation that attempts to reform the healthcare system by providing more Americans with Affordable Quality Health Insurance and by curbing the growth in healthcare spending in the U.S.. Reforms include new benefits, rights and protections, rules for Insurance Companies, taxes, tax breaks, funding, spending, the creation of committees, education, new job creation and more.
Should I wait for the form to prepare my income tax return?
For the majority of employees, you do not need to wait for the Form 1095-C in order to file your individual Income Tax Return (IRS Form 1040, 1040A, or 1040EZ). Most employees will know whether they had health coverage for a month and can simply check a box on their tax return to attest that they, their spouse, and any eligible dependents had minimum essential coverage throughout the calendar year.
Under what conditions would I need the information on Form 1095-C to file my Income Tax Return?
- You received an advance premium tax credit or wish to take the premium tax credit on your return; or
- You had a gap in coverage of more than three consecutive months
Do I need to attach Forms 1095-C to my federal tax return?
No, do not submit the 1095-C with your tax return. However, you may need to refer to the form in order to complete your tax return.
How will I receive these forms and when will I receive it?
You may receive these forms by mail, hand delivery from your employer, or online through iSolved. You should receive the forms by March 2, 2016, with your W-2. However, because this is the first year in which employers must provide these new forms, it is possible that some forms may be received after February 1st.
If you receive your W2 online, you can find your 1095-C form online through iSolved under the ‘W2/ACA/1099’ menu.
What if I don’t receive a Form 1095-C from my employer by March 31st?
Not all employers will furnish a Form 1095-C. Only large employers – those with an average of 50 or more employees – are required to furnish them. If you work for an organization with more than 50 full-time employees and have not received a form, you may need to call your employer to verify if the mandate applies to them.
What IRS resources are available to help me if I had gaps in coverage and possible exemptions?
If you had gaps in coverage of three consecutive months or more during 2016, you may need to apply for an affordability exemption (if available) from the individual mandate for any months in which you, your spouse, and/or your eligible dependents did not have health coverage on IRS Form 8965, Health Coverage Exemptions.
For more information, refer to the IRS website on Health Coverage Exemptions here.