UPDATED: OCTOBER 12, 2023 | 2 MIN READ
If you’re somewhat familiar with the Health Insurance Marketplace, you’ve more than likely become accustomed to the term form 1095. But what exactly Is this form, and how does It pertain to you and your health insurance coverage?
Below we’ll jump right into what this form is used for, who needs to file it, and some pertinent differences between the 1095 A, 1095 B, and 1095 C.
Form 1095
Every individual who purchases a health insurance policy through the Health Insurance Marketplace will receive a form 1095 that must be filed with the IRS when your annual file taxes. Form 1095 is an important document that offers critical information regarding your health insurance policy.
This form also indicates any payments of premium tax credits, who are covered under the insurance policy, and what your insurance premium costs are.
Who needs to file form 1095?
Any individual who gets health insurance coverage through the Marketplace must file a 1095 A with the IRS.
Furthermore, anyone offering even minimal insurance coverage to an individual will be required to send a copy of Form 1095 B or 1095 C to the individual employee and the IRS.
The forms provide the IRS with critical information, such as who in the household had health insurance coverage throughout the year.
How do I get the form 1095
1095 forms are sent via US mail, and most policyholders have no Issues obtaining them through the mail. However, alternative ways may exist if you haven’t received your form through the mail.
If you bought your health insurance through the federal Insurance Marketplace, you could obtain a copy of the 1095 A form through HealthCare.gov.
You can also get a copy of your Marketplace statement online through your Marketplace account.
If you bought your health plan through a state Marketplace, you could likely obtain an electronic copy of the form directly through your state Marketplace account.
Types of 1095 tax forms
There are three types of 1095 tax forms available. These include a 1095 A form, 1095 B form, and 1095 C form. Let’s learn more about these forms and what they mean for you below.
1095 A
The 1095A form is a statement for the Health Insurance Marketplace. It’s a form submitted to the IRS for tax purposes, and policyholders who have health insurance through the Marketplace receive a copy each year.
The forms typically contain information such as all family members enrolled in a health plan, how much insurance costs the policyholders for the year, coverage amounts, and any applicable tax credits available.
1095 B
Form 1095 B Is sent to employees, and the IRS, from the employer. But, these forms are for employers with 50 or fewer full-time employees.
Private health insurance companies whose policyholders purchase directly through the insurance company rather than the Marketplace also send these forms.
And in some cases, those with Medicare Part A coverage may also receive a 1095 B.
1095 C
A 1095 C is also sent out to employees and the IRS but done so by employers of much larger companies.
Any large employer with more than 50 full-time employees will be responsible for sending a copy of this document to the IRS and the insurance policyholder (employee).
The 1095 B and C forms indicate the type of insurance coverage the employee had throughout the year, coverage periods, and any dependents that were covered.
Differences between the 1095A, 1095 B, and 1095C – Should contain one keyword if possible
While they are all similar, the forms 1095A, 1095B, and 1095C are somewhat different. The 1095A form is sent directly to policyholders and the IRS through the Health Insurance Marketplace.
The information in this document could be used for claiming a premium tax credit or for potential credit on your tax return if you had any advanced credit payments throughout the year.
Form 1095B indicates whether or not you carried the minimum essential health insurance coverage during the past year.
In most cases, taxpayers receiving this form are employed with smaller companies with 50 or fewer full-time employees. Or, they may have Medicare Part A coverage.
The 1095C form details health insurance coverage within employer-sponsored health coverage. These are designed for larger companies and contain more than 50 full-time employees.
The forms indicate types of coverage and who in the household is covered through the insurance policy.
Check Form 1095 for accuracy
You’ll want to ensure your 1095A form is accurate when you receive it. To do this, you’ll want to take the following steps:
- First, you’ll always want to be sure and verify all pertinent, basic information. These details include the full names and addresses of all household members listed. You’ll doublecheck Parts A and 2 of your form.
- Next, you’ll want to ensure your premium amounts are listed correctly.
If there are inconsistencies on your 1095, you’ll want to make sure and have it corrected.
How to correct a 1095 form if it’s incorrect
If you suspect that your Form 1095 isn’t correct, you must take the necessary steps to have it corrected.
You can contact the federal or state insurance Marketplace through which you have insurance coverage. At that point, the Marketplace can send you an updated form.
Corrections for 1095B and 1095C forms can be as quick and easy to fix as simply obtaining a new and correct 1095 form from your employer. Once the form is correct, it can be submitted to the IRS.
FAQs
What is a 1095 tax form used for?
The 1095 form reports specific information to the IRS about those enrolled in a health insurance plan through the Marketplace.
1095 B and C are used for the same purposes but are geared towards employees and sent from employers.
How can I get my 1095 form?
The 1095s are generally received through the mail. However, you can access your form online if you don’t receive it via mail.
Why do I need Form 1095 to file my taxes?
When filing your taxes each year, it’s crucial that you also file your 1095.
This is because the form is used to help resolve any premium tax credits you may have gotten throughout the year with the correct amount of credits you would’ve been eligible for.
Does Form 1095 affect my tax refund?
1095s can affect your tax return by indicating advance payments of paid premium tax credits towards your coverage, you, and your household members on your health plan.
You’ll need to submit your 1095 form to reconcile the advance payments.
What is the penalty for not filing a 1095 form?
Unfortunately, you may find that you don’t want to avoid filing your 1095 form.
If you don’t file it, you could experience a delay in receiving your tax refund, and it could even impact any future advance premium tax credit payments.
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