Eight Tips About The New ACA Information Statements (1095-B and 1095-C)

This information comes from IRS Issue Number HCTT 2015-84.  It pertains to the Affordable Care Act (ACA), also known as Obamacare.  

Many individuals will receive new ACA information statements for the first time in 2016:

Here are eight tips about these new statements that can help you file your taxes.  

  1. While the forms may help you complete your tax return, they are not required to file. You can file your federal tax return even if you have not received one of these statements.
  2. Form 1095-B, Health Coverage, is used by providers to report information to the IRS and to taxpayers about individuals who are covered by minimum essential coverage and therefore aren't liable for the individual shared responsibility payment.
  3. Form 1095-C, Employer-Provided Health Insurance Offer and Coverage is used by companies with 50 or more full-time employees to report the information required about offers of health coverage and enrollment in health coverage for their employees. 
  4. Form 1095-C is also used by employers that offer employer-sponsored self-insured coverage to report information about individuals who have minimum essential coverage under the employer plan and therefore are not liable for the individual shared responsibility payment for the months that they are covered under the plan.
  5. Individuals who worked for multiple employers that are required to file Form 1095-C may receive a Form 1095-C from each employer.
  6. For your protection, form 1095-B and 1095-C may only include only the last four digits of your social security number or taxpayer identification number. 
  7. These forms will be mailed to you, unless you consent to  paperless (electronic) statements with your health insurance company. 
  8. Health insurance providers should furnish a copy of Form 1095-B, to you if you are identified as the “responsible individual.”

This sounds complicated, but it's not that bad.  That's the best thing about using software to do your taxes - we ask you simple questions, crunch the numbers, and put everything in it's place, just the way Uncle Sam likes it.