As many employees begin receiving the IRS 1095 Form for the first time this year, we know there will be many questions that follow! Below is a handy Q&A to help explain what the form is and why it's needed. We welcome you to copy and paste the text below as a starter for your personalized employee communication.
SEVEN Things to Know About the IRS 1095 Form
1. What is the Form 1095*?
Form 1095 is a Patient Protection and Affordable Care Act (ACA) information reporting form, required by the Internal Revenue Service (IRS) for tax year 2015 and beyond.
2. Who provides the form?
Employees may receive these from an employer or insurance carrier, and sometimes may receive more than one.
3. What do I do with the form?
Employees should keep all forms with their other 2015 tax documents. 1095 Forms are not included with income tax return filings; instead, employees should simply keep them along with their other tax records as back up documentation, if requested in the future.
4. When will I get the form?
Forms must be mailed and postmarked by March 31, 2016, so allow a few extra mail days for arrival.
5. Do I put any of this information on my 2015 income tax return?
On their individual tax returns, employees must indicate whether or not they had medical coverage during 2015.
6. Does this mean I have to wait to file a return until I receive a form?
No - There is no requirement to wait. When completing their returns, employees may rely on information they have already received from their employer or insurer outlining whether they were enrolled in employer-sponsored coverage during the 2015 year. However, we understand some tax preparers are requiring the ACA forms before feeling comfortable with finalizing an individual's income tax return.
7. How can I learn more about this requirement?
Visit the IRS helpful Q&A site for individual taxpayers: https://www.irs.gov/Affordable-Care-Act/Questions-and-Answers-about-Health-Care-Information-Forms-for-Individuals.
*1095-C (sent by large employers of 50 or more full-time employees including full-time equivalents) or
1095-B (sent by small employers sponsoring self-funded coverage and insurer for fully-insured coverage.)