This is the first year that the new health care law, also called the Affordable Care Act or Obamacare, requires employers to send Form 1095-Cs to certain employees. Did you receive a Form 1095-C from your employer and you’re not sure what to do next? No problem, we have you covered with answers to the most frequently asked questions about the new tax form.
What is a Form 1095-C?
The Affordable Care Act, or Obamacare, includes both the individual mandate and the employer mandate. The individual mandate requires that most Americans have qualifying healthcare coverage or potentially face a fine. The employer mandate requires employers with 50 or more full-time equivalent employees to offer healthcare coverage to their full-time employees or potentially face a fine. Much like the Form W-2 is used to determine whether or not you owe taxes, the IRS will use the information reported from your Form 1095-C to determine whether you (or your employer) may have to pay a fine for failing to comply with the Affordable Care Act.
The Form 1095-C contains important information about the healthcare coverage offered or provided to you by your employer. Information from the form may be referenced when filing your tax return and/or to help determine your eligibility for a premium tax credit. Think of the form as your “proof of insurance” for the IRS.
If you or a family member enrolled in healthcare coverage at any time in 2015, you will receive a Form 1095 from the entity that provided the coverage. For example, if you were determined to be a full-time employee or were enrolled in coverage through your employer, you will receive a 1095-C from your employer.
Did you receive a 1095-C and are wondering what the codes mean? Check out our Form 1095-C Decoder.