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It’s official: health insurance coverage must be proven on your tax returns this year. With the new change comes, of course, new forms. So you should have received a 1095 form by now, from either your employer, the Marketplace, or your health care provider. The difficulty may come from the fact that there are 3 types of 1095 form, the A, B, and C. So which one(s) did you get, is it correct, and why that form? Don’t worry, it’s not as complicated as it may seem as I will show you by breaking them down here.
The 1095-A will come to you from your health care provider. This form goes out to individuals who got their own insurance through the Marketplace Your insurance carrier sends basic coverage information to the Marketplace. A copy of your 1095-A is sent to the IRS by the Marketplace, so your copy is simply for your records. You use this form to reconcile any tax credits you may be eligible for by completing a form 8962. Even if you did not receive Advanced Premium Tax Credits, you may able to get a tax credit on your tax return. The Marketplace coverage is the only coverage eligible for tax credits.
The 1095-B will come to those who are covered, either by a small employer, or a private health insurance purchased outside the Marketplace. This form will come to you from your health care provider. The 1095-B is your proof that you and your family members had the minimum essential coverage (MEC), for 2015. You will only receive one 1095-B per household, so if your spouse or dependents need the form for their own taxes and records, it is okay to make copies. A copy of this form has already been sent to the IRS by your health insurance provider, so you do not need to include it with your return: simply keep it for your own records.
The 1095-C will come to those who are covered by certain large employers. This form will come to you from your employer. This form shows whether or not your employer offered health care coverage, and if so, the lowest monthly premium for self-only coverage that was offered to you in 2015. If you were a full-time employee, you will receive form whether or not you enrolled in health insurance benefits through your employer. If you purchased health insurance coverage through the Marketplace and wish to claim the premium tax credit, the information provided on the 1095-C will assist you in determining whether you are eligible. A copy of this form has already been sent to the IRS by your employer, so you do not need to include it with your return: simply keep it for your own records.
By now, you should have received your 1095 form, whether it is the A, B, or C. IF you have not, contact either your employer or health care provider accordingly. In all instances, copies of these forms have all been sent to the IRS already, so you do not need to include them with your return. They are simply there to prove that you had the minimum essential coverage (MEC), and to provide with other details that you may need for tax credits and other information on your return.
MHIB Group does not provide tax advice. We recommend that you work with your tax professional or the IRS to further understand how these forms are used.