Form 1095-C, an important document concerning employer-sponsored health coverage, confirms whether your employer offered you health insurance coverage during the previous year. At WHAT.EDU.VN, we understand that navigating tax forms can be confusing, and we’re here to simplify the process for you, providing clarity around complex topics. Let’s delve into the Affordable Care Act (ACA) reporting and employer health insurance offerings.
1. Understanding Form 1095-C: An Overview
Form 1095-C, titled “Employer-Provided Health Insurance Offer and Coverage,” is an IRS form used to report information about health coverage offered by large employers to their employees. Specifically, it is used by Applicable Large Employers (ALEs) – those with 50 or more full-time employees (including full-time equivalent employees) – to fulfill their reporting responsibilities under the Affordable Care Act (ACA).
This form provides details about the health insurance coverage offered to you by your employer, including whether the coverage meets the minimum essential coverage (MEC) requirements of the ACA and whether it was considered affordable.
2. Who Needs Form 1095-C?
If you work for an Applicable Large Employer (ALE), you will likely receive Form 1095-C. An ALE is generally defined as an employer with 50 or more full-time employees (including full-time equivalent employees) during the previous calendar year. This means that even if you are not enrolled in your employer’s health insurance plan, you may still receive this form.
The form is primarily intended for:
- Employees: To provide information needed to determine eligibility for premium tax credits on the Health Insurance Marketplace.
- The IRS: To verify whether employers are complying with the ACA’s employer mandate, which requires ALEs to offer minimum essential coverage to at least 95% of their full-time employees and their dependents.
3. Key Information on Form 1095-C
Form 1095-C is divided into two parts, each containing crucial information. Let’s explore these sections in detail:
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Part I: Employee and Employer Information
This section contains basic information about you, the employee, and your employer. It includes:
- Employee’s Name
- Employee’s Social Security Number
- Employee’s Address
- Employer’s Name
- Employer’s Employer Identification Number (EIN)
- Employer’s Address
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Part II: Employee Offer and Coverage
This is the most important section of the form, as it details the health coverage offered to you by your employer. This part includes:
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Line 14: Offer of Coverage Code: This code indicates the type of health coverage offered to you. Some common codes include:
- 1A: Minimum essential coverage providing minimum value offered to you.
- 1B: Minimum essential coverage providing minimum value offered to you and your dependents.
- 1C: Minimum essential coverage providing minimum value offered to you, your spouse, and your dependents.
- 1H: No offer of coverage.
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Line 15: Employee Required Contribution: This is the employee’s share of the monthly premium for the lowest-cost self-only coverage that meets minimum value.
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Line 16: Section 4980H Safe Harbor Codes: These codes provide information about why an employer may not be subject to penalties under the ACA. Some common codes include:
- 2A: Employee not employed during the month.
- 2B: Employee not a full-time employee.
- 2C: Employee enrolled in coverage offered.
- 2D: Employee in a waiting period.
- 2E: Employee not enrolled in coverage; the employee met certain eligibility requirements for special enrollment in the Marketplace.
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4. Why is Form 1095-C Important?
Form 1095-C plays a vital role in the administration of the Affordable Care Act (ACA) and can affect your eligibility for premium tax credits on the Health Insurance Marketplace.
- Verifying Eligibility for Premium Tax Credits: If you purchased health insurance through the Health Insurance Marketplace and received advance premium tax credits (APTC), you will need Form 1095-C to reconcile those credits when you file your taxes. The information on Form 1095-C helps determine if you were eligible for the credits based on your employer’s offer of coverage.
- Avoiding Penalties: Employers use Form 1095-C to demonstrate that they are complying with the ACA’s employer mandate. Failure to comply can result in penalties for employers.
- Understanding Your Coverage Options: Form 1095-C provides a clear record of the health coverage offered to you by your employer, allowing you to make informed decisions about your health insurance options.
5. What to Do When You Receive Form 1095-C
Upon receiving Form 1095-C, it’s essential to take the following steps:
- Review the Information: Carefully review all the information on the form to ensure it is accurate. Pay close attention to your name, Social Security number, employer information, and the coverage details in Part II.
- Keep It for Your Records: Store the form with your other tax documents. You will need it when you file your taxes, especially if you received advance premium tax credits (APTC) through the Health Insurance Marketplace.
- Contact Your Employer if There Are Errors: If you find any errors on Form 1095-C, contact your employer’s HR department or benefits administrator immediately to request a corrected form.
- Use It to Reconcile Premium Tax Credits: If you received APTC, use Form 1095-C along with Form 8962 (Premium Tax Credit) to reconcile your credits when you file your taxes. This will help determine if you received the correct amount of credit throughout the year.
6. Understanding the Codes on Line 14 and 16 of Form 1095-C
Lines 14 and 16 of Form 1095-C contain codes that provide important information about the health coverage offered to you and your employer’s compliance with the ACA. Understanding these codes is crucial for accurately interpreting the form.
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Line 14: Offer of Coverage Code:
This code indicates the type of health coverage offered to you by your employer. Here’s a breakdown of some common codes:
Code Description 1A Minimum essential coverage providing minimum value offered to you 1B Minimum essential coverage providing minimum value offered to you and your dependents 1C Minimum essential coverage providing minimum value offered to you, your spouse, and your dependents 1D Minimum essential coverage providing minimum value offered to you and your spouse 1E Minimum essential coverage providing minimum value offered to you and at least one dependent 1F Minimum essential coverage not providing minimum value offered to you 1G You were not a full-time employee during the month 1H No offer of coverage 1I You enrolled in minimum essential coverage -
Line 16: Section 4980H Safe Harbor Codes:
These codes explain why an employer might not be subject to penalties under the ACA. Here are some common codes:
Code Description 2A Employee not employed during the month 2B Employee not a full-time employee 2C Employee enrolled in coverage offered 2D Employee in a waiting period 2E Employee not enrolled in coverage; the employee met certain eligibility requirements for special enrollment in the Marketplace 2F The employer was using the affordability safe harbor based on the employee’s household income. This means the employee’s required contribution for the lowest-cost self-only coverage that provides minimum value was no more than 9.5% (adjusted annually) of the employee’s household income. 2G The employer was using the affordability safe harbor based on the employee’s W-2 wages. This means the employee’s required contribution for the lowest-cost self-only coverage that provides minimum value was no more than 9.5% (adjusted annually) of the employee’s W-2 wages reported in Box 1. 2H The employer was using the affordability safe harbor based on the employee’s federal poverty line. This means the employee’s required contribution for the lowest-cost self-only coverage that provides minimum value was no more than 9.5% (adjusted annually) of the federal poverty line for a single individual.
7. Form 1095-C and the Health Insurance Marketplace
Form 1095-C is particularly important if you or your family members are enrolled in health insurance through the Health Insurance Marketplace. Here’s how it relates:
- Premium Tax Credits: If you receive advance premium tax credits (APTC) to help pay for your Marketplace insurance, you must reconcile those credits when you file your taxes. Form 1095-C provides the information needed to determine if you were eligible for the credits based on your employer’s offer of coverage.
- Affordability of Employer Coverage: The IRS uses the information on Form 1095-C to determine if your employer’s health coverage offer was considered affordable. If your employer offered affordable coverage that met minimum value standards, you may not be eligible for premium tax credits on the Marketplace.
- Potential Repayment of Premium Tax Credits: If you enrolled in Marketplace coverage and received APTC, and your employer offered you coverage that was deemed affordable, you may have to repay some or all of the tax credits you received. The affordability threshold is adjusted annually by the IRS.
8. Common Scenarios and Form 1095-C
Let’s examine some common scenarios and how Form 1095-C applies in each case:
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Scenario 1: You Enrolled in Employer-Sponsored Health Coverage
If you enrolled in your employer’s health insurance plan, you will still receive Form 1095-C. The form will confirm that you were offered coverage and that you enrolled in it. You may not need to take any specific action with the form when filing your taxes, but it’s still important to keep it for your records.
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Scenario 2: You Declined Employer-Sponsored Health Coverage and Enrolled in Marketplace Coverage
If you declined your employer’s health coverage and instead enrolled in a plan through the Health Insurance Marketplace, Form 1095-C becomes crucial. You will need the information on the form to reconcile your premium tax credits when you file your taxes. The IRS will use the information to determine if you were eligible for the credits based on your employer’s offer of coverage.
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Scenario 3: Your Employer Did Not Offer Health Coverage
If your employer did not offer health coverage, you may be eligible for premium tax credits on the Health Insurance Marketplace, assuming you meet the other eligibility requirements. Form 1095-C will indicate that no offer of coverage was made.
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Scenario 4: You Were Only Employed Part of the Year
If you were only employed by an ALE for part of the year, you will only receive Form 1095-C for the months you were employed. The form will indicate the months you were eligible for coverage.
9. Potential Issues and How to Resolve Them
While Form 1095-C is designed to be straightforward, issues can sometimes arise. Here are some potential problems and how to address them:
- Incorrect Information on the Form: If you find errors on Form 1095-C, such as an incorrect Social Security number or inaccurate coverage details, contact your employer’s HR department or benefits administrator immediately. They can provide you with a corrected form.
- Not Receiving Form 1095-C: If you believe you should have received Form 1095-C but haven’t, contact your employer. They are required to provide the form to eligible employees.
- Difficulty Understanding the Form: If you are having trouble understanding Form 1095-C, consult with a tax professional or contact the IRS for assistance.
10. Form 1095-C vs. Form 1095-A and 1095-B: Understanding the Differences
It’s easy to confuse Form 1095-C with other similar forms, such as Form 1095-A and Form 1095-B. Here’s a breakdown of the differences:
| Form | Purpose | Who Issues It | Who Receives It |
|---|---|---|---|
| Form 1095-A | Reports information about health insurance coverage purchased through the Health Insurance Marketplace. | Health Insurance Marketplace | Individuals who enrolled in coverage through the Marketplace and received advance premium tax credits (APTC). |
| Form 1095-B | Reports information about minimum essential coverage (MEC) you had during the year. | Insurance providers, employers who sponsor self-insured health plans, and other entities that provide MEC. | Individuals who had MEC, such as through an employer-sponsored plan, a government program (like Medicare or Medicaid), or a private insurance plan. |
| Form 1095-C | Reports information about health coverage offered by large employers to their employees. | Applicable Large Employers (ALEs) – those with 50 or more full-time employees (including full-time equivalents). | Employees of ALEs who were offered health coverage, regardless of whether they enrolled in the coverage. |
11. Filing Your Taxes with Form 1095-C
When it’s time to file your taxes, here’s how to use Form 1095-C:
- If You Enrolled in Employer-Sponsored Coverage: If you enrolled in your employer’s health insurance plan for the entire year, you likely won’t need to take any specific action with Form 1095-C. Simply keep it for your records.
- If You Declined Employer-Sponsored Coverage and Enrolled in Marketplace Coverage: If you declined your employer’s coverage and enrolled in a Marketplace plan, you will need to reconcile your premium tax credits. Use Form 1095-C along with Form 8962 (Premium Tax Credit) to determine if you received the correct amount of credit throughout the year. You will need to enter the information from Form 1095-C into Form 8962 to calculate your premium tax credit.
- If You Were Only Employed Part of the Year: If you were only employed by an ALE for part of the year, you will need to account for this when reconciling your premium tax credits. Form 1095-C will indicate the months you were eligible for coverage.
12. Understanding Minimum Essential Coverage (MEC) and Minimum Value
Two key concepts related to Form 1095-C are minimum essential coverage (MEC) and minimum value. Let’s define these terms:
- Minimum Essential Coverage (MEC): This refers to health coverage that meets the requirements of the Affordable Care Act (ACA). MEC includes coverage provided by employer-sponsored plans, Medicare, Medicaid, CHIP, and individual health insurance policies purchased through the Health Insurance Marketplace or directly from an insurance company.
- Minimum Value: A health plan provides minimum value if it covers at least 60% of the total allowed cost of benefits that are expected to be incurred under the plan. In other words, the plan must pay for a significant portion of your health care expenses.
Employers are required to offer health coverage that meets both MEC and minimum value standards to avoid penalties under the ACA.
13. Employer Responsibilities Regarding Form 1095-C
Applicable Large Employers (ALEs) have specific responsibilities regarding Form 1095-C. They must:
- Provide Form 1095-C to Eligible Employees: ALEs must furnish Form 1095-C to all full-time employees, regardless of whether they enrolled in the employer’s health coverage.
- File Form 1094-C with the IRS: ALEs must also file Form 1094-C (Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns) with the IRS. This form summarizes the information reported on all of the employer’s Form 1095-Cs.
- Meet Deadlines: ALEs must furnish Form 1095-C to employees by early March each year (the deadline is often extended). They must also file Form 1094-C with the IRS by the end of March if filing electronically, or by the end of February if filing on paper.
- Ensure Accuracy: ALEs must ensure that the information reported on Form 1095-C is accurate and complete.
14. Penalties for Employers Who Fail to Comply
Employers who fail to comply with the ACA’s reporting requirements may be subject to penalties. These penalties can be substantial, especially for large employers. Some common penalties include:
- Failure to Furnish Form 1095-C to Employees: Employers who fail to provide Form 1095-C to eligible employees by the deadline may be subject to penalties.
- Failure to File Form 1094-C with the IRS: Employers who fail to file Form 1094-C with the IRS by the deadline may also be subject to penalties.
- Failure to Offer Minimum Essential Coverage: Employers who fail to offer minimum essential coverage to at least 95% of their full-time employees and their dependents may be subject to penalties under the ACA’s employer mandate.
- Offering Coverage That Is Not Affordable: Employers who offer coverage that is not considered affordable (i.e., the employee’s required contribution exceeds a certain percentage of their household income) may also be subject to penalties.
15. Resources for More Information
If you have additional questions about Form 1095-C, here are some helpful resources:
- Internal Revenue Service (IRS): The IRS website (www.irs.gov) provides detailed information about Form 1095-C and the Affordable Care Act.
- Your Employer’s HR Department: Your employer’s HR department or benefits administrator can answer questions about your health coverage and Form 1095-C.
- Tax Professionals: A tax professional can provide personalized advice and assistance with filing your taxes.
- Health Insurance Marketplace: The Health Insurance Marketplace website (www.healthcare.gov) offers information about health insurance options and premium tax credits.
16. Understanding the Affordable Care Act (ACA) and Its Impact on Form 1095-C
The Affordable Care Act (ACA), also known as Obamacare, is the primary driver behind the creation and use of Form 1095-C. The ACA mandates that large employers (those with 50 or more full-time employees) offer health insurance coverage to their employees that meets certain minimum standards. Form 1095-C is the mechanism by which employers report this information to the IRS and to their employees.
Here’s how the ACA impacts Form 1095-C:
- Employer Mandate: The ACA’s employer mandate requires ALEs to offer minimum essential coverage to at least 95% of their full-time employees and their dependents. Form 1095-C is used to verify compliance with this mandate.
- Premium Tax Credits: The ACA provides premium tax credits to eligible individuals and families to help them afford health insurance purchased through the Health Insurance Marketplace. Form 1095-C is used to determine eligibility for these credits.
- Reporting Requirements: The ACA imposes reporting requirements on ALEs to provide information about the health coverage they offer to their employees. Form 1095-C is the primary form used to fulfill these reporting requirements.
17. Future Changes to Form 1095-C
The IRS may make changes to Form 1095-C in the future as it continues to refine the implementation of the Affordable Care Act (ACA). It’s essential to stay informed about any updates or revisions to the form. You can find the latest information on the IRS website (www.irs.gov).
Potential future changes could include:
- Changes to the Codes: The IRS may introduce new codes or modify existing codes on Line 14 and Line 16 of Form 1095-C.
- Changes to the Affordability Threshold: The IRS may adjust the affordability threshold used to determine if employer-sponsored coverage is considered affordable.
- Changes to Reporting Requirements: The IRS may modify the reporting requirements for ALEs.
18. Seeking Professional Assistance
Navigating the complexities of Form 1095-C and the Affordable Care Act (ACA) can be challenging. If you are unsure how to interpret the form or how it affects your tax situation, consider seeking professional assistance.
- Tax Professionals: A tax professional can provide personalized advice and assistance with filing your taxes. They can help you understand Form 1095-C and how it relates to your eligibility for premium tax credits.
- Financial Advisors: A financial advisor can help you assess your overall financial situation and make informed decisions about your health insurance options.
- Your Employer’s HR Department: Your employer’s HR department or benefits administrator can answer questions about your health coverage and Form 1095-C.
19. Common Mistakes to Avoid When Using Form 1095-C
To ensure accuracy and avoid potential issues, here are some common mistakes to avoid when using Form 1095-C:
- Ignoring the Form: Don’t disregard Form 1095-C. It contains important information that you may need when filing your taxes.
- Failing to Review the Information: Carefully review all the information on the form to ensure it is accurate.
- Not Contacting Your Employer About Errors: If you find any errors on Form 1095-C, contact your employer immediately to request a corrected form.
- Not Reconciling Premium Tax Credits: If you received advance premium tax credits (APTC), be sure to reconcile those credits when you file your taxes.
20. Staying Updated on Form 1095-C and the ACA
The Affordable Care Act (ACA) and the regulations surrounding Form 1095-C can be complex and subject to change. To stay informed, consider the following:
- Check the IRS Website Regularly: The IRS website (www.irs.gov) is the official source for information about Form 1095-C and the ACA.
- Subscribe to IRS Updates: You can subscribe to IRS email updates to receive the latest news and information about tax-related topics.
- Consult with a Tax Professional: A tax professional can help you stay informed about changes to the tax laws and regulations.
21. Form 1095-C and Self-Employed Individuals
While Form 1095-C primarily applies to employees of Applicable Large Employers (ALEs), self-employed individuals may also encounter this form in certain situations. Here’s how:
- Self-Employment Income and Marketplace Coverage: If you are self-employed and purchase health insurance through the Health Insurance Marketplace, you may be eligible for premium tax credits. The information on Form 1095-C (if you also work for an ALE) can help determine your eligibility for these credits.
- Self-Employed Individuals as Employers: If you are a self-employed individual with 50 or more full-time employees (including full-time equivalents), you may be considered an ALE and required to provide Form 1095-C to your employees.
22. State-Specific Requirements Related to Form 1095-C
Some states have their own specific requirements related to Form 1095-C and health insurance reporting. These requirements may be in addition to the federal requirements under the Affordable Care Act (ACA).
- State Individual Mandates: Some states have individual mandates that require residents to have health insurance coverage. Form 1095-C may be used to verify compliance with these mandates.
- State Reporting Requirements: Some states may have their own reporting requirements for employers regarding health insurance coverage.
23. Tax Implications of Form 1095-C
Form 1095-C primarily affects your tax situation if you received advance premium tax credits (APTC) to help pay for health insurance purchased through the Health Insurance Marketplace. Here’s how:
- Reconciling Premium Tax Credits: When you file your taxes, you must reconcile your APTC to determine if you received the correct amount of credit throughout the year. Form 1095-C provides the information needed to reconcile these credits.
- Potential Repayment of Premium Tax Credits: If you received APTC and your employer offered you coverage that was deemed affordable, you may have to repay some or all of the tax credits you received.
- Claiming the Premium Tax Credit: If you were eligible for the premium tax credit but did not receive it in advance, you can claim it when you file your taxes.
24. Tips for Accurately Completing Form 8962 (Premium Tax Credit)
If you need to file Form 8962 (Premium Tax Credit) to reconcile your premium tax credits, here are some tips for accurately completing the form:
- Gather All Necessary Documents: Before you start, gather all the necessary documents, including Form 1095-A (if you purchased coverage through the Marketplace), Form 1095-C (if you were offered employer-sponsored coverage), and any other relevant tax documents.
- Follow the Instructions Carefully: Read the instructions for Form 8962 carefully and follow them step-by-step.
- Use the IRS Resources: The IRS provides various resources to help you complete Form 8962, including publications, FAQs, and online tools.
- Double-Check Your Calculations: Double-check all your calculations to ensure accuracy.
- Seek Professional Assistance: If you are unsure how to complete Form 8962, consult with a tax professional for assistance.
25. Examples of How to Use Form 1095-C in Different Situations
To further illustrate how Form 1095-C is used, let’s consider some examples:
- Example 1: John works for a large company and is offered health insurance coverage. He enrolls in the company’s plan. When he receives Form 1095-C, it confirms that he was offered coverage and that he enrolled in it. John doesn’t need to take any specific action with the form when filing his taxes, but he keeps it for his records.
- Example 2: Sarah works for a large company but declines the company’s health insurance coverage because she finds a better plan on the Health Insurance Marketplace. She receives advance premium tax credits (APTC) to help pay for her Marketplace plan. When she receives Form 1095-C, she uses the information on the form to reconcile her premium tax credits when she files her taxes.
- Example 3: Michael works for a small company that does not offer health insurance coverage. He purchases a plan on the Health Insurance Marketplace and receives APTC. He does not receive Form 1095-C because his employer is not an Applicable Large Employer (ALE).
26. Understanding the Role of Form 1094-C (Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns)
Form 1094-C, titled “Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns,” is used by Applicable Large Employers (ALEs) to transmit Form 1095-C information to the IRS.
Here’s how Form 1094-C works:
- Summary of Information: Form 1094-C provides a summary of the information reported on all of the employer’s Form 1095-Cs.
- Employer Information: Form 1094-C includes information about the employer, such as its name, address, and Employer Identification Number (EIN).
- Filing Requirements: ALEs must file Form 1094-C with the IRS by the end of March if filing electronically, or by the end of February if filing on paper.
27. How to Obtain a Copy of Form 1095-C
If you need a copy of Form 1095-C, here’s how to obtain one:
- Contact Your Employer: The easiest way to obtain a copy of Form 1095-C is to contact your employer’s HR department or benefits administrator. They can provide you with a copy of the form.
- Check Your Online Payroll Account: Some employers provide Form 1095-C electronically through an online payroll account.
- Request a Copy from the IRS: In some cases, you may be able to request a copy of Form 1095-C from the IRS. However, this is generally only possible if you have already filed your taxes.
28. What to Do If You Receive Multiple Form 1095-Cs
In some situations, you may receive multiple Form 1095-Cs. This can happen if:
- You Worked for Multiple Employers: If you worked for multiple Applicable Large Employers (ALEs) during the year, you will receive a Form 1095-C from each employer.
- You Had a Change in Coverage: If you had a change in health insurance coverage during the year, you may receive multiple Form 1095-Cs from the same employer.
- Your Employer Made an Error: If your employer made an error on Form 1095-C, they may issue a corrected form, resulting in you receiving multiple forms.
If you receive multiple Form 1095-Cs, it’s essential to review each form carefully and use the information to accurately reconcile your premium tax credits (if applicable).
29. Understanding the Impact of Form 1095-C on Part-Time Employees
Form 1095-C primarily applies to full-time employees of Applicable Large Employers (ALEs). However, part-time employees may also be affected by this form in certain situations.
- Eligibility for Coverage: Part-time employees may be eligible for health insurance coverage through their employer, even if they are not considered full-time. If a part-time employee is offered coverage, the employer must provide them with Form 1095-C.
- Determining Full-Time Status: The IRS uses specific rules to determine whether an employee is considered full-time for purposes of the Affordable Care Act (ACA). Generally, an employee who works an average of 30 or more hours per week is considered full-time.
- Safe Harbor Codes: Form 1095-C includes safe harbor codes that explain why an employer might not be subject to penalties under the ACA. One of these codes (Code 2B) indicates that the employee was not a full-time employee.
30. Frequently Asked Questions (FAQs) About Form 1095-C
To further clarify any remaining questions you may have, here are some frequently asked questions about Form 1095-C:
| Question | Answer |
|---|---|
| What is Form 1095-C used for? | Form 1095-C is used to report information about health coverage offered by large employers to their employees. |
| Who is required to receive Form 1095-C? | Employees of Applicable Large Employers (ALEs) who were offered health coverage, regardless of whether they enrolled in the coverage. |
| What information is included on Form 1095-C? | Form 1095-C includes information about the employee and employer, as well as details about the health coverage offered, such as the type of coverage, the employee’s required contribution, and any applicable safe harbor codes. |
| What should I do if I receive Form 1095-C? | Review the information on the form carefully and keep it for your records. If you received advance premium tax credits (APTC), you will need the information on the form to reconcile those credits when you file your taxes. |
| What should I do if I find an error on Form 1095-C? | Contact your employer’s HR department or benefits administrator immediately to request a corrected form. |
| What is the difference between Form 1095-C and Form 1095-A? | Form 1095-A reports information about health insurance coverage purchased through the Health Insurance Marketplace, while Form 1095-C reports information about health coverage offered by large employers. |
| What is the difference between Form 1095-C and Form 1095-B? | Form 1095-B reports information about minimum essential coverage (MEC) you had during the year, while Form 1095-C reports information about health coverage offered by large employers. |
| What is minimum essential coverage (MEC)? | Minimum essential coverage (MEC) refers to health coverage that meets the requirements of the Affordable Care Act (ACA). |
| What is minimum value? | A health plan provides minimum value if it covers at least 60% of the total allowed cost of benefits that are expected to be incurred under the plan. |
| Where can I find more information about Form 1095-C? | You can find more information about Form 1095-C on the IRS website (www.irs.gov), from your employer’s HR department, or from a tax professional. |
Navigating the world of tax forms and healthcare can be daunting. Remember, understanding Form 1095-C is a step towards making informed decisions about your health coverage and tax obligations. And if you have more questions, don’t hesitate to ask!
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