This year many people have been receiving one or more additional tax forms related to health care coverage. There are three forms that you may receive – the 1095-A, 1095-B and 1095-C. With the impact of the Affordable Care Act on your tax return, it is critical that you know what each of these forms mean so you can avoid having to pay a penalty.
You may be exempt from this payment if:
- Affordable coverage options are not offered by your employer.
• The gap in insurance coverage is no more than 2 consecutive months.
• You belong to a group that is explicitly exempt from participating in the Affordable Care Act.
Don’t forget to check to see if you qualify for the penalty exemption.
If you have had health insurance with a company that participated in the health care Marketplace, you should receive a health insurance marketplace statement (Form 1095-A). This information is necessary to file your income tax return, adjust any tax credit payments and claim any premium tax credits.
Employers with fewer than 50 full-time employees that offer health coverage will send Form 1095-B, Health Coverage form to members of their health insurance plans. This form verifies that you and your dependents have at least Minimum Essential Coverage (MEC). Those who had a break in health care coverage for the tax year may have to pay an individual shared responsibility payment.
The Employer-Provided Health Insurance Offer and Coverage Form (Form 1095-C) reflects the coverage that you received from your employer for the 2015 tax year. It is used by applicable large companies with 50 or more full-time employees. This form provides information of the coverage your employer offered and whether or not you chose to participate.
Make sure you understand how the Affordable Care Act affects you and your family. Visit the Liberty Tax ACA homepage. Did you receive a 1095 this year? Be sure to stay updated on all things ACA and taxes by following us on Facebook and Twitter.