What Are Tax Form 1095-A and 1095-B?

The new year brings resolutions, the Super Bowl and tax documents. From 1099s to W-2s, you may have a stack of different tax information. If you had health insurance in 2017, you’ll most likely be getting tax forms called 1095’s. Let’s look at the different forms and what they mean. ​

Tax Form 1095-A 

This form is sent to you if you have ACA health insurance through Covered California. It should include information on who in your family was covered and for how long. It has important information that you will need to fill out Form 8962, which calculates and reports your premium tax credit. In the past, the IRS would not accept your taxes without this form. That has changed this year, but you may still get a letter from the IRS asking for that information if you are audited. 

Tax Form 1095-B 

If you had insurance under your employer who has less than 50 employees or bought insurance directly from a health care insurer, you should receive 1095-B. This form proves that you had minimal essential coverage in the tax year. Thus, you will not have to pay a penalty. However, you don’t have any tax credits to resolve. This tax form should also include the people in your household who were covered by insurance and for how long. 

Tax Form 1095-C 

Form 1095-C is from companies with 50 or more employees. Again, the form is proof that you had minimum essential coverage of health insurance. As with the A and B forms, you should get information on the 1095-C form about your household and participation in health insurance. But as it falls under employee benefits, you won’t have to resolve the premium tax credit. 

How many forms can you receive? 

You may get multiple forms, depending on your employment history. You may even get a 1095-B from the insurance company and a 1095-C from the employer. Take the forms to your tax preparer or use them in preparing your taxes yourself. 

What do I do with them?
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Starting with the 2017 tax year, You don’t have to include these forms with your tax return, but you should save them in your own tax file. If you expect a 1095-A form, you should wait to file your taxes until you receive it, because it is relevant to your tax credits.
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For more information on health insurance and how it relates to your taxes, follow Sackett & Associates Insurance Services on Facebook. We want to make sure you and your family have coverage to protect your health, your finances and your future.