You’re bound to run across this number for your 2015 tax returns. For the first time, the Internal Revenue Service is requiring health insurance companies and employers to verify health coverages for their clients or employees. The report comes on Form 1095, and, basically, every insured person in the United States should be listed on one. (There are exceptions, of course, but I’m not going to attempt them here.)
The IRS enforces the federal Affordable Care Act, which enables universal health insurance. Last tax season for the first time, taxpayers verified on their federal returns that they were covered for all or part of 2014. For many, that amounted just to a check mark on their returns (although it could get much more complicated).
The 2015 return works much the same, but taxpayers this year also are receiving proof of insurance at tax time. The proof is IRS Form 1095. It has three versions that follow the alphabet.
- 1095-A It comes to people who were insured through one of the federal or state-created marketplaces for health insurance, such as MNsure in Minnesota. Those clients received the form in 2014, as well, so many will be familiar with it. Form 1095-A (called “Health Insurance Marketplace Statement”) should have arrived by Feb. 1. But, if it hasn’t, don’t ignore it. The IRS suggests that affected taxpayers wait to file their 2015 returns until they have it in hand because it may contain details important for filing.
- 1095-B This will come from private health insurance companies or from some small employers, particularly those who are self-insured. Don’t panic if this has not landed yet in your mailbox. The IRS extended the deadline for insurers to give out 1095-Bs until March 31.
- 1095-C Millions of taxpayers will receive the C version from their employers. People working for companies or organizations with more than 50 employees can expect to see the 1095-C. But maybe not yet. The IRS also extended the deadline for employers to provide this form until March 31.
Here’s something to note. All the 1095s are information statements, so taxpayers do not submit them to IRS when they file their returns. Also, the IRS says people getting 1095-B and 1095-C forms can file returns before they arrive, using their own records.
In an upcoming post, we’ll provide you with some quick-hit sources for health insurance reporting. As always, EricJohn Ltd. can lead you through the complexities of ACA reporting. See our Website!