Form 1095-C

March 29, 2021 : H&R Block

While you don’t naturally think taxes and healthcare are intertwined, believe it or not, they are. Whether it’s reporting health insurance coverage for your household and the amounts, or healthcare tax credits or deductions, healthcare and taxes go hand in hand.

In this post, we’ll outline the first point—reporting health insurance coverage amounts on Form 1095-C. In fact, there is a series of 1095 tax forms specific to healthcare coverage—Form 1095-A, Form 1095-B, and Form 1095-C—that are used to report your healthcare coverage amounts for the year.

Ready to cover what is a Form 1095-C—including who gets one, and what purpose the form serves. Read on for insight.

What is Form 1095-C?

Large employers (of 50 or more full-time employees) provide Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, to full-time employees who have been working at their organization for one or more months during a calendar year.

What is a Form 1095-C used for?

Now, you may wonder “what is Form 1095-C used for?” The large employers must report the information to the IRS and each full-time employee who is eligible to receive healthcare benefits, even if the employee doesn’t take the coverage. Form 1095-C is used to determine if you as an employee are eligible for the premium tax credit.

Form 1095-C instructions

Form 1095-C has several parts. Let’s dig into what it shows:

  • Part I of the form provides information about the employer, including their contact information, in case the IRS has any questions about form or sees an error.
  • Part II provides information about the employee’s healthcare coverage. It states information about the plan and reports required employee contributions.
  • Part III is filled out only if the employer provides a self-insured plan. This section lists the names of the covered employees, along with their corresponding Social Security numbers and dates of birth. Part III also validates uncovered months for the employees, if applicable. 

You can view further Form 1095-C instructions on the IRS website.

Do you need to file Tax Form 1095-C?

No, Tax Form 1095-C is a reference tax form and doesn’t need to be completed by you, the taxpayer. Your employer will send a copy of Form 1095-C to the IRS.

Additionally, it isn’t filed or attached to your individual tax return. Keep it in your tax records, however.

Side note: This form used to have more significance when the healthcare tax penalty was in effect. It went away in 2019. Previously, taxpayers who didn’t have minimum essential health insurance coverage or qualify for an exemption were required to pay a penalty on their tax return.

How do I get my 1095-C?

If you work full-time for a qualifying large employer, they will send Form 1095-C to you around January each year. Again, you don’t need to attach this form to your individual tax return.

More help with Form 1095-C

If you need more guidance on Form 1095-C or other healthcare tax topics, we can help.

For guidance on understanding the tax impact of health insurance coverage, call 1-800-HRBLOCK or visit a local H&R Block office.

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