What If I Have Form 1095-B or 1095-C?

Forms 1095-B and 1095-C are documents that relate to your health insurance coverage for the prior year. Understanding their purpose is the first step in determining what action you need to take. This article will clarify what these forms are and how they relate to your tax filing obligations.

Understanding Form 1095-B Health Coverage

Form 1095-B, Health Coverage, is a document sent by your health insurance provider. This includes private insurance companies, government-sponsored programs such as Medicare Part A and Medicaid, and smaller employers who self-insure. The form serves as proof that you and any listed dependents had “minimum essential coverage” during the tax year.

The form identifies the health insurance provider and the employer, if applicable. It lists each individual covered by the policy and indicates with a checkmark which months of the year they had coverage. This provides a clear record of your health insurance status.

Understanding Form 1095-C Employer-Provided Health Insurance

Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, is distributed by Applicable Large Employers (ALEs). An ALE is a company with 50 or more full-time employees. If you work for a large company, you will likely receive this form regardless of whether you accepted the health insurance offered. Its purpose is for the employer to report information to the Internal Revenue Service (IRS) about the health coverage it made available.

The form is divided into three parts. Part I identifies you as the employee and provides your employer’s contact information. Part II contains codes the employer uses to report details to the IRS about the coverage offered, such as its affordability and value. Part III is completed only if the employer offers a self-insured plan and will list you and any covered dependents, similar to Form 1095-B.

Action Steps for Your Tax Filing

For federal tax filing, Forms 1095-B and 1095-C are now largely informational. The federal penalty for not having health insurance was reduced to zero starting in 2019. You do not need to wait to receive these forms to file your federal income tax return, nor do you need to attach them or enter their information onto your Form 1040.

While the federal mandate no longer has a penalty, several states have their own individual health insurance mandates. Residents of California, Massachusetts, New Jersey, Rhode Island, and the District of Columbia must have qualifying health coverage or face a state-level penalty. If you reside in one of these jurisdictions, the information on your Form 1095-B or 1095-C may be necessary to complete your state tax return.

You should keep these forms with your personal tax records as they serve as official proof of your health coverage. It is also a good practice to review the information on the form for accuracy. If you find any errors, such as incorrect names or months of coverage, you should contact the issuer—the insurance provider for Form 1095-B or your employer for Form 1095-C—to request a corrected form.