2017-2025 Form

What is the 1095 C Form

The 1095 C Form is a tax document that provides information about health insurance coverage offered by applicable large employers (ALEs) to their employees. This form is part of the Affordable Care Act (ACA) reporting requirements and is used to report whether an employer offered health coverage to its full-time employees, as well as the type of coverage provided. Employers must furnish this form to employees and file it with the IRS to demonstrate compliance with the ACA mandates.

How to use the 1095 C Form

The 1095 C Form serves multiple purposes for both employers and employees. For employees, it is essential for preparing their tax returns, as it helps determine eligibility for premium tax credits and verifies health coverage. Employers use the form to report their compliance with the ACA's employer mandate. To use the form effectively, employees should keep it with their tax documents and refer to it when filing their annual tax returns. Employers must ensure accurate completion and timely submission to avoid penalties.

Steps to complete the 1095 C Form

Completing the 1095 C Form involves several key steps:

• Gather necessary information, including employee details, coverage offered, and months of coverage.
• Fill out Part I with the employer's information and employee's personal details.
• Complete Part II to indicate the type of health coverage provided to the employee.
• Fill out Part III if the employer offers self-insured coverage, detailing the individuals covered.
• Review the form for accuracy and ensure all required fields are completed.

Legal use of the 1095 C Form

The legal use of the 1095 C Form is crucial for compliance with federal regulations. Employers are required to provide this form to their employees by January 31 of each year, and they must file it with the IRS by the deadline, which is typically February 28 if filing by paper or March 31 if filing electronically. Failure to comply with these requirements can result in penalties, making it essential for employers to understand their obligations regarding this form.

Filing Deadlines / Important Dates

Timely filing of the 1095 C Form is essential to avoid penalties. Employers must provide the form to employees by January 31 each year. The deadline for filing with the IRS is February 28 for paper submissions and March 31 for electronic submissions. It is important for employers to mark these dates on their calendars to ensure compliance and avoid unnecessary fines.

Who Issues the Form

The 1095 C Form is issued by applicable large employers, defined as those with fifty or more full-time employees or full-time equivalent employees. These employers are responsible for completing and distributing the form to their employees and filing it with the IRS. The form must accurately reflect the health coverage offered to employees to ensure compliance with the Affordable Care Act.