It’s Tax Time! If you have questions about the new 1095 tax forms for health insurance, here is some helpful information, and be sure to download the sample employee letters to accompany form 1095-C (Fully Insured and Self Insured) as well as Form 1095 B (Small Self-Insured).
1095 Tax Forms
The Affordable Health Care Act/Obamacare, introduced three new tax forms that individuals, employers and healthcare insurance providers need to comply with for the 2015 tax year and beyond.
The 1095 tax forms are the forms the IRS will use to make sure everyone had the health insurance they were required to. Basically they will use the forms to catch and penalize anyone who did not comply with the Affordable Health Care Act/Obamacare mandate
Form 1095-A is for people who purchased their health insurance through the marketplace. The deadline to receive this form is February 1, 2016.
Form 1095-B is for employees who purchased health insurance through an employer with less than 50 full-time equivalent employees. The deadline to receive this form has been extended to March 31, 2016.
Form 1095-C is for employees who purchased their health insurance through employers with more than 50 full-time equivalent employees. The deadline to receive this form has been extended to March 31, 2016.
If you are wondering if you can file your tax return without the form here is what the IRS website states:
If you enrolled in coverage through the Marketplace you will need the information on Form 1095-A to complete Form 8962 to reconcile any advance payments of the premium tax credit or claim the premium tax credit, and to file a complete and accurate tax return. (Question 14 in link above)
If you enrolled through your employer you do not have to wait for either Form 1095-B or 1095-C from your coverage provider or employer to file your individual income tax return. You can use other forms of documentation, in lieu of the Form 1095 information returns to prepare your tax return. (Question 14 in link above)
The fee/penalties for not having the required health insurance go up fot the 2016 tax year. Open enrollment for 2016 closes January 31, 2016
Be sure to stay in compliance to avoid penalties. To help you facilitate these forms we have sample employee letters for you to download now!