What is a 1095-c form?

Here's information about Form 1095-C:

Form 1095-C, "Employer-Provided Health Insurance Offer and Coverage," is used to report information to the IRS and to employees about offers of health coverage made by applicable large employers (ALEs). An ALE generally has 50 or more full-time employees (including full-time equivalent employees) during the prior calendar year.

Here's a breakdown of what the form is about:

• Purpose: The main purpose of the <a href="https://www.wikiwhat.page/kavramlar/1095-c%20form">1095-C Form</a> is to determine if an employer owes a payment under the Employer Shared Responsibility provisions of the Affordable Care Act (ACA). It also helps the IRS administer the premium tax credit.

• Who Receives It?: Employees who were full-time employees for one or more months of the calendar year working for an ALE receive a copy of this form.

• Key Information Reported: The form reports on:

  • Offers of health insurance coverage made to the employee by the employer.
  • Whether the employee enrolled in the coverage.
  • The cost of the coverage.
  • Months during the year the coverage was offered.
  • Certain information about the employer.

• Sections of the Form: The form is broken down into parts, including:

  • Part I: Employee and Employer Information. This section contains basic details like names, addresses, and employer identification number (EIN).
  • Part II: Employer Offer of Coverage. This is the most important part for employees. It indicates the type of coverage offered, the monthly cost of the cheapest available plan that meets minimum value, and various codes explaining the offer. Codes are used to indicate specifics.
  • Part III: Employee Enrollment and Employer Certifications. This section pertains to employees who enrolled in the employer-sponsored health coverage and is used to report certain certifications.

• What to do with the form: Employees should keep Form 1095-C with their other tax records. It is used to reconcile whether they are eligible for a <a href="https://www.wikiwhat.page/kavramlar/premium%20tax%20credit">Premium Tax Credit</a> when filing their income tax return. While you generally don't need to submit it with your tax return, it's important to have it in case the IRS asks for documentation.

• Deadlines: Employers are required to furnish Form 1095-C to employees by a specific deadline, typically in late January or early February of the following year. The IRS also has a filing deadline.

• Important Codes: Pay close attention to the codes used in Part II. They indicate the type of coverage offered and whether it meets minimum essential coverage and minimum value standards. Understanding these <a href="https://www.wikiwhat.page/kavramlar/codes%20in%20part%20II">codes in Part II</a> is crucial for determining your eligibility for the premium tax credit.

If you have questions about your specific 1095-C form, it's best to contact your employer's HR department or a tax professional.