IRS Form 1095-C: Employer Health Coverage Reporting Guide

ACA Compliance: Form 1095-C documents your employer's health insurance offerings and your enrollment status under the Affordable Care Act (ACA) requirements.

Understanding Your 1095-C

This form provides detailed information about your employer-sponsored health coverage options.

Key Sections Explained:

  • Part I: Employer and employee identification information
  • Part II:
    • Line 14: Offer of coverage code
    • Line 15: Employee premium amount
    • Line 16: Safe harbor code
  • Part III: Covered individuals and months of coverage
Who Receives This Form?

You should receive Form 1095-C if you:

  • Were a full-time employee (or part-time eligible for coverage) at an Applicable Large Employer (ALE)
  • Worked for a company with 50+ full-time equivalent employees
  • Were offered employer-sponsored health coverage
  • Enrolled in or declined employer health plans

Note: Even if you declined coverage, you'll still receive this form.

Tax Implications of 1095-C

For Most Employees

  • Simply retain for records (no filing required)
  • Verifies you had qualifying coverage
  • Helps avoid individual mandate penalties in some states

For Marketplace Enrollees

  • Needed to reconcile Premium Tax Credit (Form 8962)
  • Proves you weren't offered affordable employer coverage
  • Affects eligibility for marketplace subsidies

For Employers

  • Demonstrates ACA compliance
  • Shows offers of Minimum Essential Coverage
  • Documents affordability standards
How to Use Your 1095-C
  1. Verify accuracy: Check your name, SSN, and coverage months
  2. Review offer codes: Understand what coverage was offered
    • 1A = Minimum Essential Coverage offered to employee only
    • 1E = Offer to spouse (if applicable)
    • 1H = No offer of coverage
  3. Keep with tax records: Don't file with return but retain for 3+ years
  4. Marketplace enrollees: Use information when completing Form 8962
Common Issues & Solutions

Missing Form

Employers must provide by March 2 - follow up if not received

Incorrect Information

Request corrected form from HR if errors exist

Multiple Forms

Common if you changed jobs - keep all versions

Key Terms Explained
  • ALE: Applicable Large Employer (50+ FT employees)
  • MEC: Minimum Essential Coverage
  • Affordable Coverage: Employee premium ≤ 9.12% of household income (2023)
  • Minimum Value: Plan covers at least 60% of costs

Need Help Understanding Your 1095-C?

Our tax professionals specialize in ACA compliance and health coverage reporting.

We Can Assist With:

  • Interpreting employer health coverage codes
  • Reconciling Premium Tax Credits
  • Correcting form errors with employers
  • Navigating state individual mandates
  • ACA penalty avoidance strategies

Call 972-519-0041 today for ACA tax guidance

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