IRS Form 1095-C: Understanding Boxes 14, 15, and 16 for ACA Reporting
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- ACA Reporting, IRS Form 1095-C
RS Form 1095-C is used by Applicable Large Employers (ALEs) to report health insurance coverage offered to employees under the Affordable Care Act (ACA). Boxes 14, 15, and 16 are critical because they show coverage details, costs, and eligibility.
Box 14: Offer of Coverage
What to Report:
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Whether the employer offered coverage.
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The type of coverage and its affordability.
Common Codes:
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1A: MEC for employee and dependents.
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1E: MEC for employee and at least one dependent, but not spouse.
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1H: No offer of coverage.
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1G: MEC for employee, spouse, and dependents.
Box 15: Employee Required Contribution
What to Report:
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The lowest-cost monthly premium for self-only minimum essential coverage that meets ACA minimum value.
Reporting Tip:
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Report the monthly amount. If coverage was not offered for a month, leave the box blank.
Box 16: Applicable Indicator
What to Report:
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Whether the employee was enrolled and met ACA shared responsibility provisions.
Common Codes:
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2A: Employee not employed during the month.
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2B: Employee not eligible for coverage.
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2C: Employee enrolled in coverage.
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2D: Limited non-assessment period (e.g., new hire).
Summary
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Form 1095-C demonstrates ACA compliance.
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Boxes 14, 15, and 16 show coverage type, cost, and employee eligibility.
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Accurate reporting avoids penalties and ensures employees have the correct tax information.
Conclusion
When completing Form 1095-C, review each box carefully. Accurate entries help meet ACA rules and provide employees with clear coverage records for their taxes.