What You Need To Know About 1095-C Tax Forms
What is 1095-C Tax Form?
A 1095-C Tax Form is an information form that employers are required to furnish to employees who are enrolled in an employer-sponsored health insurance plan. The form is used to report information to the Internal Revenue Service (IRS) about the health coverage offered to employees. This form is required to be filed by employers with 50 or more full-time equivalent employees, and is typically due to the IRS by the end of February. The form is also required for employers who are a part of the Affordable Care Act (ACA).
What is the Purpose of 1095-C Tax Form?
The purpose of the 1095-C Tax Form is to help the IRS verify that employees and their dependents have had access to health insurance that meets the minimum essential coverage requirements of the ACA. The information reported on the form is used by the IRS to determine if an individual or family is eligible for a premium tax credit or cost-sharing reductions. The form also helps the IRS determine if employers have complied with the employer mandate by offering affordable health insurance options to their employees.
Who Should Receive a 1095-C Tax Form?
Employers are required to provide 1095-C Tax Forms to any employee who was enrolled in a health insurance plan during the tax year. This includes employees who are enrolled in employer-sponsored health insurance, as well as those who are enrolled in an individual health insurance plan. Employees who are enrolled in a family health insurance plan will receive one form per family member.
What Information is Reported on 1095-C Tax Forms?
1095-C Tax Forms include information about the employee’s health coverage, such as the type of coverage offered and the months the employee was enrolled in the health plan. It also includes information about the employer, including their name, address, and employer identification number (EIN). Additionally, the form reports the cost of health coverage, which is used to determine if coverage is affordable according to the ACA.
When is 1095-C Tax Form Due?
Employers are required to furnish 1095-C Tax Forms to employees by the end of January each year. The forms must also be filed with the IRS by the end of February. Employers who fail to furnish or file the forms may be subject to penalties.
What Should an Employee Do With Their 1095-C Tax Form?
Employees should keep their 1095-C Tax Forms in a safe place, as they may need them to file their taxes. They should also review the form to make sure that all of the information is correct. If there are any errors, they should contact their employer to have them corrected.
Where Can an Employee Find More Information About 1095-C Tax Forms?
The IRS website provides detailed information on 1095-C Tax Forms, including information on how to file them and what to do if there are errors. Additionally, employers can contact a tax professional for more information about the form and how to properly file it.
Conclusion
1095-C Tax Forms are an important part of the Affordable Care Act, and employers are required to furnish and file them. Employees should keep their forms in a safe place, as they may need them when filing their taxes. Additionally, employers should contact a tax professional for assistance with filing the form correctly. Understanding 1095-C Tax Forms is essential for both employers and employees.