An apple a day keeps the doctor away…just not from your paychecks.
There are new tax forms that you should keep your eyes peeled for this year. These are the 1095-A, 1095-B and 1095-C. No need to panic. These forms are mainly for your reference and can be stowed away with the rest of your tax documents until you’re ready to file a tax return for the year. So why are they making a debut in a mailbox near you? Let’s take a look at what they are and how to handle them.
What is each form?
A 1095-A is your Health Insurance Marketplace statement. This provides you with the annual information about your health coverage if you or someone in your family was enrolled in coverage through the Health Insurance Marketplace.
A 1095-B is your Health Coverage statement. This shows you the yearly information about your health care coverage if you, your spouse or your dependents were enrolled in coverage through an insurance provider or self-insured employer.
A 1095-C is your Employer-Provided Health Insurance Offer & Coverage statement. This form will provide you with the yearly coverage offered to you through your employer.
Which form will I get?
You’ll receive a 1095-A if you, your spouse or your dependent(s) were enrolled in health coverage for the year through the Marketplace.
A 1095-B will be coming your way if you and/or your family members received insurance through a health insurance provider. Health insurance providers consist of insurance companies, certain self-insured employers and government agencies that run Medicaid, Medicare or the Children’s Health Insurance Program (CHIP).
Check your mailbox for a 1095-C if you were a full-time employee and work(ed) for an applicable large employer for the year. An applicable ‘large employer’ is an employer with more than fifty full-time employees.
Will I receive multiple forms?
You may receive multiple 1095-A forms if any of the following applied to your situation throughout the year:
- Members of your household were not enrolled in the same health plan.
- You switched insurance coverage plans.
- You had family members enrolled in different states.
- Your family information was updated sometime.
You’ll receive more than one 1095-B form if any of the following was true for you during the year:
- You received coverage from multiple providers.
- Different family members received insurance coverage from different providers.
- You switched coverage plans or employers.
You’re likely to receive multiple 1095-C forms if you ended up working for multiple large employers last year. Once again, an applicable ‘large employer’ means that the employer has a staff of over fifty full-time employees throughout the year.
What should I do with each form?
Each of these forms contains important information about your health insurance coverage. You should keep these 1095 forms for your own records and not attach them to your tax return when you file your taxes. Now let’s take a look at how each 1095 will help you prepare your tax return.
If you receive a 1095-A:
- Refer back to it when you complete Form 8962 for your Premium Tax Credit.
- Reconcile advance payments of the premium tax credit. You’ll see these on lines 21-33. If so, then you must file a tax return and report these payments, even if you wouldn’t have filed otherwise.
- If coverage is shown for you and your family for the entire year, check the full-year coverage box on your tax return.
- If there are months when you or any family members were not covered, you can figure out if you qualify for an exemption or must make an individual shared responsibility payment.
If you receive a 1095-B:
- If coverage is shown for you and your family for the entire year, check the full-year coverage box on your tax return.
- If there are months when you or any family members were not covered, you can figure out if you qualify for an exemption or must make an individual shared responsibility payment.
If you receive a 1095-C:
- If coverage is shown for you and your family for the entire year, check the full-year coverage box on your tax return.
- If there are months when you or any family members were not covered, you can figure out if you qualify for an exemption or must make an individual shared responsibility payment.
What if I did not receive a form but should have?
If you are waiting on a 1095-A, B, or C, don’t worry about waiting on hold with the IRS. They can’t get you a copy . Your insurance provider issues these forms and will be able to help you obtain any copies that you need.
It is important to wait on filing your tax return if you are expecting a 1095-A. If you file before receiving this form, your refund could be delayed. On the other hand, if you are expecting a 1095-B or 1095-C, then you don’t necessarily need to wait to receive either of these in the mail before filing your tax return. These forms do contain important information, but it is primarily for your own records.
File your tax return using your 1095-A, B or C with RapidTax.
These health coverage forms are new to the tax world and can cause unnecessary panic when you receive them in the mail. Though you may be initially confused by them, the majority of us will be able to store these in our filing cabinets and never think about them again. When you do receive yours, the RapidTax team is here to help you with any other questions you may have. Create an account today and get that tax return out of the way!
