1095 C 2020-2025 Form

What is the Form 1095-C?

The Form 1095-C is an IRS 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) requirements and must be filed by employers with fifty or more full-time employees. It outlines the type of coverage offered and whether the employee was enrolled in that coverage during the tax year. The information on the form helps the IRS determine compliance with the ACA’s employer mandate.

How to Use the Form 1095-C

To effectively use the Form 1095-C, employees should review the information provided to ensure it accurately reflects their health coverage. This form is crucial for filing taxes, as it helps individuals determine their eligibility for premium tax credits and whether they owe any penalties for not having health coverage. Taxpayers should include the details from the 1095-C when completing their federal tax returns, particularly when filling out Form 8962 for premium tax credits.

Steps to Complete the Form 1095-C

Completing the Form 1095-C involves several key steps:

• Gather necessary information, including employee details and coverage offered.
• Fill out the employer information section, including the employer's name, address, and Employer Identification Number (EIN).
• Indicate the months during which coverage was available to the employee.
• Provide details about the type of coverage offered, including whether it met the minimum essential coverage standards.
• Submit the completed form to the IRS and provide a copy to the employee.

Legal Use of the Form 1095-C

The Form 1095-C is legally required for applicable large employers to report health coverage information to both the IRS and their employees. This form serves as proof of compliance with the ACA’s employer mandate and is essential for employees when filing their taxes. Failure to provide accurate information on the 1095-C can result in penalties for the employer and may affect the employee’s tax return.

Filing Deadlines / Important Dates

Employers must adhere to specific deadlines for filing the Form 1095-C. Generally, the forms must be submitted to the IRS by the end of February if filing by paper or by the end of March if filing electronically. Additionally, employers are required to provide a copy of the form to employees by January 31 of the following year. It is essential to stay informed about these deadlines to avoid penalties.

Who Issues the Form 1095-C?

The Form 1095-C is issued by applicable large employers, which are defined as those with fifty or more full-time employees or full-time equivalent employees. These employers must provide the form to their employees and file it with the IRS to report the health coverage they offered. It is important for employers to ensure that the information on the form is accurate and complete to comply with IRS regulations.