THERE HAS BEEN AN IMPORTANT CHANGE REGARDING THE 1095 FORM(S) AND YOUR TAX FILINGS
On December 22, 2017, the IRS released Notice 2018-06, which provides an automatic extension to all employers on furnishing these forms to you. The deadline for these forms to be furnished to you is now MARCH 2, 2018.
YOU WILL BE ABLE TO COMPLETE AND FILE YOUR TAXES WITHOUT YOUR 1095 FORM(S) OR PROOF OF MEDICAL qINSURANCE COVERAGE! YOU WILL NOT NEED TO AMEND YOUR FILINGS UPON RECEIPT OF YOUR 1095 FORM(S)!
Just like last year, your 1040 Tax Form for 2017 will ask if you had medical insurance coverage for all 12 months. Although the 1095 form(s) are not needed to complete your taxes for 2017; employers and insurance providers are required to furnish these forms to their employees..
ADDITIONAL INFORMATION AND SAMPLES:
You will be receiving these forms because in 2014, the Affordable Care Act began requiring all Americans, with few exceptions, to have health insurance or pay a penalty of the greater of 2% of your household income or $695 per person ($347.50 per child under 18). The maximum penalty per family is $2,085. The Affordable Care Act also requires that all employers who have more than 50 full time employees, offer coverage to their full-time employees.
In 2018, the IRS is requiring that each employer with over 50 full time employees report to the IRS the coverage they offered to their full time employees in 2017. This form is called a 1095-C form. As a self-insured health insurance plan, your employer is required to disclose the offer of coverage in Parts I, II, and III of the 1095-C form. The form will look like this:
If you accepted the health insurance offered by your employer, Part III of the 1095-C form will disclose the coverage you took and who was covered under your plan, month by month.
Q. Does this mean I can file my taxes without my 1095 form?
A. While information on these forms may assist in preparing a return, the forms are not required to file. You can prepare and file your returns using other information about your health coverage.
Q. Will I receive a 1095 form(s)?
A. If you are supposed to receive a form but do not receive your form by March 16, 2018, please contact your Human Resources department.
Q. Do I need to keep my 1095 form(s)?
A. Please keep these forms with your other tax records as these forms are important tax documents.
Q. What do the codes on Line 14 mean?
A. The codes listed on line 14 describe the coverage that your employer offered to you and if it was offered to your spouse and dependent(s), if any. These codes were provided to your employer by the IRS, and you will receive a copy of the codes with your form.
Q. Why is the amount on Line 15 of the 1095-C form different than the amount I pay for health insurance?
A. Although you may pay more than the amount listed on Line 15, the IRS requires that the employer put the premium an individual would pay for the lowest cost plan and for single coverage only. This is how the IRS determines if the plan was affordable.
Q. What do the codes on Line 16 mean?
A. The codes listed on line 16 describe your employment and health insurance enrollment status. These codes were also provided by the IRS, and you will receive a copy of the codes with your form.
Q. Will my dependents receive a 1095-B form if they were covered on my insurance?
A. No, since your employer is self-insured, Part III of the form will list each month you and your dependent(s) were enrolled in coverage for at least one day.
Q. What if I had coverage through somewhere other than my employer?
A. If you were full-time and benefit eligible then you will still receive a 1095-C form that will provide information on the offer of coverage made to you by your employer. However, you will still need to show that you were covered on a health insurance plan when you file your taxes. You will need to request a copy of the 1095-B or 1095-C form from the person covering you on their insurance. If you took coverage through the federal or state Healthcare Marketplace you will receive a 1095-A form.
Q. Will I get a form if I didn’t take any coverage?
A. If you were full-time and benefit eligible then you will still receive a 1095-C form that will provide the
information on the offer of coverage made to you by your employer. You will still need this form even if you
had coverage elsewhere or didn’t have any coverage at all. However, you will not receive a 1095-B form.
Q. What if I don’t receive a 1095-C form?
A. You will only receive a 1095-C form if you are a full time employee and completed your waiting period for
benefits. If you are a part time or variable hour employee, you will not receive a 1095-C form unless you had medical coverage with your employer. If you were on COBRA or Retiree continuation coverage in 2017, you will receive a form. If you should have received a 1095-C form and did not, then please contact your Human Resources department.
Q. What action do I need to take?
A. The IRS will be receiving a copy of your forms by March 31, 2018. It is imperative that you review the forms for any errors. If a Social Security Number or Tax Identification Number is missing or incorrect, please let your HR Department know immediately. This may affect the IRS’ ability to confirm you and your family had coverage.