Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, is a crucial tax document that employees of large companies may receive annually. This form serves as proof that your employer, if they are considered an Applicable Large Employer (ALE) under the Affordable Care Act (ACA), offered you health coverage during the previous calendar year. Even if you decided not to enroll in your employer’s health plan, you should still receive Form 1095-C, either by mail or electronically, typically by mid-March. This information is also reported to the Internal Revenue Service (IRS).
Form 1095-C contains essential details regarding your health coverage eligibility. It will clearly state your name and your employer’s information, the months you were eligible for health coverage, and importantly, the employee share of the lowest monthly premium for self-only coverage under the employer-sponsored health plan. In situations where a large employer did not offer health coverage to its full-time employees, Form 1095-C will also reflect this information.
It is important to retain Form 1095-C with your tax records. This form may be necessary when filing your taxes, particularly if you were offered health coverage through your employer but chose not to enroll. Furthermore, if you opted for health insurance through the Health Insurance Marketplace and received advance payments of the premium tax credit in 2024, the information on Form 1095-C is vital. It helps to reconcile any premium tax credits you received. Specifically, it assists in determining whether you were indeed eligible for the premium tax credit. If you enrolled in Marketplace coverage and received a premium tax credit, and your employer offered coverage deemed affordable (meaning the employee’s share of the lowest monthly premium for self-only coverage was not more than 8.39% of your household income for 2024), you might be required to repay some or all of the premium tax credit you received.
For more detailed information, you can refer to the IRS resources about Form 1095-C. This form is a key component in understanding your health coverage options and responsibilities under the ACA.
