What is a 1095 c?

Form 1095-C: Employer-Provided Health Insurance Offer and Coverage

Form 1095-C is an IRS tax form that employers use to report information about the health insurance coverage they offered to their employees. It's important for both employers and employees for various reasons, primarily related to the Affordable%20Care%20Act (ACA).

Purpose:

• Employer Reporting: Employers subject to the ACA's employer mandate use Form 1095-C to report to the IRS about offers of health insurance coverage to their employees. This helps the IRS determine if the employer is meeting their obligations under the ACA.
• Employee Information: Employees receive a copy of Form 1095-C to help them when filing their individual income tax returns. It provides information about the health insurance coverage offered by their employer, which is necessary to determine their eligibility for the Premium%20Tax%20Credit.

Who Receives Form 1095-C?

• Employees: Employees who worked for an Applicable Large Employer (ALE) – generally, an employer with 50 or more full-time employees (including full-time equivalent employees) – are generally entitled to receive Form 1095-C.
• Self-Insured Coverage: Employees who are enrolled in employer-sponsored self-insured health coverage will also receive this form.

Key Information on the Form:

The form includes the following critical information:

• Employer Information: Employer name, address, and Employer Identification Number (EIN).
• Employee Information: Employee name, Social Security number, and address.
• Coverage Information: Details about the health insurance coverage offered to the employee, including:
  • Whether the employee was offered minimum essential coverage.
  • The lowest cost monthly premium the employee would pay for self-only coverage.
  • Information about whether the coverage met minimum value standards.
• Months of Coverage: Information showing which months the employee was offered coverage.
• Applicable Codes: Various codes (defined by the IRS) used to describe the offer of coverage and reasons for not offering coverage.

What to Do with Form 1095-C:

• Keep it with your tax records. You may need it when filing your income tax return.
• Use it to determine your eligibility for the Premium Tax Credit. If you purchased health insurance through the Health Insurance Marketplace, you'll need this form to reconcile any advance payments of the Premium Tax Credit you received.
• Review it for accuracy. Contact your employer if you find any errors.

Important Considerations:

• Form 1095-C is not filed with your tax return.
• You don't necessarily have to take any action if you had coverage for the entire year through your employer. The primary use is for reconciliation with Marketplace plans and for those who might have taken the Premium%20Tax%20Credit.