The Affordable Care Act (ACA) requires most individuals to maintain a minimum level of health insurance coverage. To enforce this, the IRS issues several forms that document the type of coverage you have and whether it meets ACA requirements. These forms—1095-A, 1095-B, and 1095-C—are now mandatory for tax reporting.
Form 1095-A: Verification of Health Coverage
Form 1095-A is issued by the ACA Healthcare Marketplace. It confirms that you purchased a health plan through the exchange and that it meets ACA requirements. The form is also used to calculate any premium tax credits you may claim.
Form 1095-B: Minimum Essential Coverage
Form 1095-B verifies that your health plan (outside of the ACA Marketplace) provides minimum essential coverage. If your plan does not meet these standards, the IRS may assess a penalty, known as the Shared Responsibility Payment.
Form 1095-C: Large Employer Coverage
Large employers (50 or more full-time employees) must issue Form 1095-C to their employees. This form documents whether the employer offered affordable health coverage that meets ACA requirements. If adequate coverage is not offered, the employer may face penalties, and employees may have to seek coverage through the Marketplace.
How to Use These Forms
-
Verifying Coverage: Use the form you receive to confirm your coverage for the tax year.
-
Claiming Credits: If you qualify for premium tax credits, use Form 1095-A with Form 8962 when filing your return.
-
Penalty Assessment: If you do not have coverage, the IRS may apply a penalty. For tax year 2015, the penalty was $325 per adult or 2% of household income, whichever was greater.
Why These Forms Matter
These ACA forms help the IRS determine whether you had coverage, whether you qualify for tax credits, and whether penalties apply. They also help employers and insurers stay compliant with federal reporting requirements.
How 1099FIRE Can Help
At 1099FIRE, we specialize in IRS compliance and electronic filing. Our ACA services include:
-
Preparing and e-filing 1095-A, 1095-B, and 1095-C forms.
-
Helping employers and insurers remain compliant with ACA reporting rules.
-
Offering expert support to reduce rejections and IRS penalties.
Contact us at support@1099fire.com or call (480) 706-6474 for assistance with ACA compliance and reporting.