A Quick Guide to ACA Health Insurance Tax Forms
As tax season begins, you should be prepared to receive documents related to ACA health insurance. There are three types of Form 1095 that you can receive. To clear up confusion and answer questions as you file for taxes, here’s a quick rundown of what these forms mean for you.
What is IRS Form 1095-A?
If you have ACA health insurance through Covered California, you will receive this Health Insurance Marketplace Statement. It includes details about the coverage including who was covered and for how long. Form 1095-A should not be included with your tax return, but it is needed to fill out Form 8962, which either claims your premium tax credit or reconciles advance payments of it.
What is IRS Form 1095-B?
If you bought insurance directly or work for a small company, you will likely receive this Health Coverage tax document. It reports the minimum essential coverage and all details of the plan. Keep this form for your records but do not send it alongside your tax return.
What is IRS Form 1095-C
You’ll get this form if you work for a company with 50 or more employees. It proves you received the minimum essential coverage of ACA health insurance. Employers who offer “self-insured coverage issue this to employees they cover. This Employer Provided Health Insurance Offer and Coverage Insurance document should not be sent with your tax return but should be kept for recordkeeping purposes.
You Can Receive More Than One Form
Don’t be surprised if you receive more than one of these forms–or even all of them. It is likely you will receive multiple if you were employed by several companies that provided coverage. If you are covered by a private policy for part of the year and a Covered California policy for another part of the year, you might receive multiple forms. Additionally, if you are employees by a company with 50 of more employee that gets coverage through an insurance company, you will get Form 1095-C from your company and Form 1095-B from the insurance company.
How They Relate to Your Tax Return
While none of these forms should be included with your tax return, you should wait to file if you are expecting to get Form 1095-A due to its relevance to the premium tax credit. It is not necessary to wait for the other two forms to file your tax return. For more information on these tax documents relating to your ACA health insurance, read more on our blog or contact us.