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The ABCs of the New Healthcare-Related 1095 Tax Forms

Posted on February 5th, 2016

2016 will be the first year that most Americans will receive a Form 1095. As you would suspect, several people are wondering which forms will be provided and when. Here is some basic information to help answer those questions.  
A. Form 1095-A is to be provided by January 31st to anyone who enrolled in a health insurance plan through a Federal or State Marketplace. The purpose of the form is to help people reconcile the health insurance subsidies they received when they file their 2015 federal tax return. Generally speaking, if you received too much of a subsidy you need to pay some of it back. If you received too little of a subsidy, you will receive the balance owed to you on your federal tax return. 
B. Form 1095-B is most commonly provided to anyone who was enrolled in a fully insured health plan obtained outside of the Federal or State Marketplace. This applies to both individual and group health plans. It will usually be sent to you from your insurance company by March 31st.  It will indicate the months you were enrolled in coverage last year. If you recall, there are now penalties that apply to most people who are without health insurance. This form helps both you and the IRS understand if you had a health insurance plan in 2015.  
C. Form 1095-C is typically provided to any full-time employees who work for a company with 50 or more employees. This form will include information about the health insurance coverage that was offered to you by your employer even if you didn’t enroll in the plan.  If you recall, one of the eligibility requirements to receive a subsidy through a Federal or State Marketplace is that a person lacks access to affordable coverage with minimum value from their employer. This form helps the IRS understand if a person was indeed eligible for a subsidy in 2015. It is also used to determine if an employer is subject to any penalties under the Employer Mandate for not offering coverage that is affordable and has minimum value to its full-time employees.  
Be aware that you may receive more than one Form 1095. For example, if you were covered by more than one plan last year, you should receive a form for each plan. In addition, if you worked for an employer with 50 or more employees and you were enrolled in a fully insured plan offered by that employer, you will receive two forms.  Other circumstances may also warrant multiple forms.      
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The materials contained within this communication are provided for informational purposes only and do not constitute legal or tax advice. 

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