Some employees are sent a document called a 1095 C, which contains detail and information surrounding your healthcare coverage.
Technically, you don’t need to include this form with your tax return, and it doesn’t need to be sent to the IRS. Although, you can use the information that comes with the form to help you fill out and file your taxes.
In this article, we will be discussing more about the 1095 C form. While answering common questions that many people ask surrounding this form and their tax return.
What Is Form 1095 C?
The Affordable Care Act dictates that any employer that has 50 or more full time employees should offer those who are full time with the company some form of healthcare coverage.
If they do not offer some form of healthcare coverage, then the employers could possibly face some form of a fine.
The 1095 C form outlines all the information surrounding your healthcare coverage of that tax year.
In addition to that, if you received an Advanced Premium Tax Credit, the form will help the IRS determine whether you should receive any additional credit or if you need to repay any tax credit.
Who Doesn’t Receive A 1095 C Form?
Not every employee will receive a 1095 C form. These forms only apply to full time employees within a company. The employees will work an average of 30+ hours per week.
Also, the employee needs to make sure that they have enrolled in the healthcare insurance that the company is offering during the current tax year to be able to receive this form.
Therefore, if you are a part-time worker, then the chances are that you won’t be receiving a 1095 C form from your employer.
Can You Receive More Than One 1095 C Form?
It is very possible to receive multiple 1095 C forms. However, this is only the case if you work at more than one company in the tax year.
For example, if you happen to change your job in the same tax year, and the employee was enrolled in healthcare insurance with both companies, then it is likely you will receive a 1095 C form from both employers.
In addition to that, if you work for an employer that works with various franchises or other companies, then you could possibly receive a 1095 C form from each company you worked for under that employer for that tax year.
What Do You Do With A 1095 C Form?
Generally, you will receive your 1095 C in January of each year from your employer. Unless the IRS decides to change the guidelines, in January, if you have healthcare insurance with your employer you can expect this form to arrive through your door.
While you don’t need this form to fill out and complete your tax return, you can use other forms or use the information on it to fill out details. Furthermore, you don’t need to send this document to the IRS with your tax return, either.
Yet, you should keep all of your 1095 C forms in a safe place with all your other important documents and records.
What Will Your 1095 C Form Look Like?
The 1095 C form is a really straightforward form, which you can use to help you file out your tax return. The form is actually split into three different parts.
- Part 1 – This section covers all the information regarding the employee that this form has been sent to and their employer.
- Part 2 – In this section, it talks about the employee offer and coverage. Thus, the information that is offered to you by your employer is spoken about in this section. It discusses the coverage that you were offered. It also includes reasons why you were and weren’t offered coverage by your employer as well.
- Part 3 – This section is all about the individuals that are covered by this healthcare insurance. The individuals that are covered can include the employee and there with some plans their dependencies are also covered with the insurance.
However, sometimes this third section will be left blank. There are a couple of reasons for this occurring, such as if you are a union employee, the healthcare coverage is run through COBRA, or the coverage is a fully-insured plan.
Are There Other 1095 Forms?
There are in fact three different 1095 forms, including 1095 A, 1095 B and 1095 C. The difference between all these forms is who the sender is of the forms. Yet, all these forms are about healthcare insurance.
1095 A will be sent, if the employer is covered by a state or federal marketplace. This is also known as an exchange.
1095 B will be received if the employee is covered by insurers like a small self funded business. Or you may receive this form if you are enrolled into a fully insured employer’s sponsored plan.
Finally, if your employer uses SHOP, otherwise known as the Small Business Health Options Program, then you could receive 1095 B.
1095 is received by employees and sent directly from your employer, as outlined in the article above.
When it comes to doing your taxes, there are a lot of documents that you need to have. If you are a full time worker, then your company may have enrolled you into a healthcare insurance plan. Then you may receive a 1095 C form at the end of January every year.
This form can be used to help you file your taxes using the information it has on it.
However, if you don’t receive this form then you can still complete your taxes without it, you will just need to use other documents like your insurance cards, statements of our insurer, or payroll statements.
We hope you have found this article helpful and have a better understanding of 1095 C forms.