Form 1095-C Line 14 Codes: Understanding Offer of Coverage Indicators

Employers subject to the Affordable Care Act (ACA) must file Form 1095-C each year to report the type of health insurance coverage they offered to full-time employees. One of the most important sections is Line 14, where employers enter the correct 1095-C Line 14 Codes to show the IRS what kind of coverage was offered each month.

Using the right form 1095 c line 14 codes is essential for meeting ACA Employer Shared Responsibility Provisions and determining whether an employee may qualify for a Premium Tax Credit. Mistakes on Line 14 can lead to compliance issues and possible IRS penalties.

What Is Line 14 on Form 1095-C?

Line 14 of Form 1095-C asks: “What type of health coverage did you offer this employee for this month?” Employers must enter a two-digit code for each month of the year—or once if the offer was the same for all 12 months. These form 1095 c line 14 codes identify:

• The type of coverage offered

• Who the offer was made to (employee, spouse, dependents)

• Whether the offer met Minimum Essential Coverage (MEC) and affordability standards

1095-C Line 14 Offer of Coverage Codes

Below are the most common 1095-C Line 14 Codes used for ACA reporting. These apply to tax year 2023 and beyond unless the IRS updates the codes.

• 1A – Qualifying Offer
  MEC providing minimum value to employee, spouse, and dependents.
  Employee contribution for self-only coverage ≤ 9.12% of the federal poverty line (2023).
  → Allows simplified reporting.

• 1B – MEC with minimum value to employee only
  Not offered to spouse or dependents.

• 1C – MEC with minimum value to employee and dependents
  Not offered to spouse.

• 1D – MEC with minimum value to employee and spouse
  Not offered to dependents.

• 1E – MEC with minimum value to employee, spouse, and dependents
  Most comprehensive “full coverage” code.

• 1F – MEC that does not provide minimum value
  Coverage offered but didn’t meet the minimum value standard.

• 1G – Offer to individuals not full-time for any month
  Used for part-time employees or COBRA recipients.

• 1H – No offer of coverage
  Use when no coverage was offered during the month.

• 1L–1S – ICHRA-Related Codes
  Apply when offering an Individual Coverage Health Reimbursement Arrangement (ICHRA).

  • 1L – ICHRA to employee only, affordability based on residence ZIP code.

  • 1M – ICHRA to employee + dependents (not spouse).

  • 1R – ICHRA offered but not affordable.

  • 1S – ICHRA to a non-full-time employee.

Why Correct Codes Matter

Accurately completing Form 1095-C Line 14 Codes ensures the IRS understands your health coverage offers and confirms your compliance with ACA requirements. Using the wrong form 1095 c line 14 codes can trigger penalties, incorrect tax credit calculations for employees, and additional IRS inquiries.