What is Form 1095-C: Employer-Provided Health Insurance Offer and Coverage?

An Applicable Large Employer (ALE) reports employee health coverage to the Internal Revenue Service (IRS) using the IRS Form 1095-C. Most ALEs employ 50 or more full-time workers.

This form helps taxpayers qualify for premium tax credits.

Who Can File Form 1095-C: Employer-Provided Health Insurance Offer and Coverage?

Applicable Large employers provide this form to full-time workers who have worked for one or more months. ALE members must submit such information for each employee for the whole year.

The IRS provides a refundable premium tax credit to qualified individuals and families to help them pay for Health Insurance Marketplace premiums.

How to File Form 1095-C: Employer-Provided Health Insurance Offer and Coverage

Taxpayers do not complete this form without a tax return. Instead, keep it alongside taxpayer records.

• The ALE member’s name, address, and phone number are listed in Part I of the form for verification purposes or error reporting.
• If offered, Part II details employee health care coverage. Employee-required contributions are included with plan details.
• To satisfy Part III, the company must offer a self-insured plan. It provides the covered people’s names, Social Security numbers, and birthdates. This section validates participants’ uncovered months.

Access this Form on the IRS website.

Other Relevant Forms

If just Parts I and II are completed, employees may get Form 1095-B: Health Coverage, proving coverage from the employer-selected insurance.

Employers report minimum essential coverage and non-individual shared responsibility payment payers on Form 1095-B to the IRS and taxpayers.

Individuals receiving health insurance through the Health Insurance Marketplace will get Form 1095-A: Health Insurance Marketplace Statement. There is no need to return Form 1095-A to the government. It just records healthcare coverage. The policy details include the coverage start date, monthly premium payments, and tax credit or subsidy advance payments.

Uses of the 1095-C Form

Form 1095-C details your employer’s health coverage and enrollment. Form 1095-C can help evaluate premium tax credit eligibility.

Is 1095-C required for 2021 taxes?

You don’t need to send your 1095-C to the IRS or include it with your 2021 tax return, but you can use its information.

How do I get a 1095-C tax form?

Your firm provides Form 1095-C if it has 50 or more full-time workers. It is also accessible on the IRS website.

How do I fill out 1095-C 2021?

The IRS website has 2021-1095-C filing instructions. Your employer will fill in the essential details.

Conclusion

• Tax Form 1095-C: Employer-Provided Health Insurance Offer and Coverage reports an applicable large employer’s health insurance coverage for employees.
• ALEs often employ 50 or more full-time workers.
• A taxpayer does not fill out or file the form with a tax return, but employers should maintain it for their records.
• This form helps taxpayers qualify for premium tax credits.
• The IRS issues a refundable premium tax credit to qualifying individuals and families that purchased healthcare via the Health Insurance Marketplace in the tax year.