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Even though slowly stripping off the “hot news” tag, the Affordable Care Act still manages to offer something new each year.
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This year marks the first time that certain taxpayers will receive new health-care related information forms that they can use to complete their tax return and then keep with their tax records.
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What you should know first of all, is that, depending upon your specific circumstances, the Health Insurance Marketplace, health coverage providers, and certain employers may provide information forms to you early in 2016. These forms can help you accurately report health coverage information for you, your spouse and any dependents when you file your 2015 individual income tax return in 2016. The Marketplace, health coverage providers, and employers will also file these forms with the IRS.
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| Since you’re here, keeping up with our newsletters, there’s no reason for you to worry, you can find all you need to know about these information forms, which, by the way, contain info that is only necessary for you to complete your tax return. |
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1. Form 1095-A, Health Insurance
Marketplace Statement
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| Form 1095-A is used to report certain information to the IRS about individuals who enroll in a qualified health plan through the Health Insurance Marketplace. Form 1095-A is also furnished to individuals to allow them to take the premium tax credit, to reconcile the credit on their returns with advance payments of the premium tax credit (advance credit payments), and to file an accurate tax return. |
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| The Marketplace must file the annual report with the IRS and furnish the statements to individuals on or before January 31, 2016, for coverage in calendar year 2015. |
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A separate Form 1095-A must be furnished for each policy and the information on the Form 1095-A should relate only to that policy. If two or more tax filers are enrolled in one policy, each tax filer receives a statement reporting coverage of only the members of that tax filer's tax household. Don't file a Form 1095-A for a catastrophic health plan or a separate dental policy.
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Statements must be furnished to recipients on paper by mail, unless a recipient affirmatively consents to receive the statement in an electronic format. If mailed, the statement must be sent to the recipient’s last known permanent address, or if no permanent address is known, to the recipient’s temporary address.
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If you are expecting to receive a Form 1095-A, you should wait to file your 2015 income tax return until you receive that form.
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2. Form 1095-B, Health Coverage
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| Form 1095-B is used to report certain 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. |
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| Minimum essential coverage includes government-sponsored programs, eligible employer-sponsored plans, individual market plans, and other coverage the Department of Health and Human Services designates as minimum essential coverage. Minimum essential coverage doesn't include coverage consisting solely of excepted benefits. Excepted benefits include vision and dental coverage not part of a comprehensive health insurance plan, workers’ compensation coverage, and coverage limited to a specified disease or illness. |
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| Every person that provides minimum essential coverage to an individual during a calendar year must file an information return reporting the coverage. Filers will use Form 1094-B to submit Forms 1095-B. However, employers (including government employers) subject to the employer shared responsibility provisions sponsoring self-insured group health plans generally will report information about the coverage in Part III of Form 1095-C instead of on Form 1095-B. Health insurance issuers and carriers must file Form 1095-B for most health insurance coverage, including individual market coverage and insured coverage sponsored by employers. However, insurance issuers and carriers don't report coverage under the Children’s Health Insurance Program (CHIP), Medicaid, Medicare (including Medicare Advantage), or the Basic Health Program provided through health insurance companies. These types of coverage are reported by the government sponsors of those programs. |
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| Eligible employer-sponsored plans include: |
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- Group health insurance coverage for employees under:
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A governmental plan, such as the Federal Employees Health Benefits program.
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An insured plan or coverage offered in the small or large group market within a state.
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A grandfathered health plan offered in a group market.
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- A self-insured group health plan for employees.
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3. Form 1095-C, Employer-Provided Health Insurance Offer and Coverage
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| Employers with 50 or more full-time employees (including full-time equivalent employees) in the previous year use Forms 1094-C and 1095-C to report the information about offers of health coverage and enrollment in health coverage for their employees. Form 1094-C must be used to report to the IRS summary information for each employer and to transmit Forms 1095-C to the IRS. In addition, Forms 1094-C and 1095-C are used in determining whether an employer owes a payment under the employer shared responsibility provisions. Form 1095-C is also used in determining the eligibility of employees for the premium tax credit. |
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| Employers that offer employer-sponsored self-insured coverage also use Form 1095-C to report information to the IRS and to employees 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. |
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| The deadline for coverage providers to provide Forms 1095-B and employers to provide Form 1095-C is March 31, 2016. |
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| You may not receive a Form 1095-B or Form 1095-C by the time you are ready to file your 2015 tax return. It is not necessary to wait for Forms 1095-B or 1095-C in order to file. You may instead rely on other information about your health coverage and employer offer to prepare your returns. |
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| These new forms should not be attached to your income tax return. If you have any doubts and uncertainties, just call your dedicated tax professional who will certainly know what to do with this info, and much more. |
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