Form 1095-C: Definition, Uses, Tax Filing Requirements

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What Is Form 1095-C: Employer-Provided Health Insurance Offer and Coverage?

Form 1095-C: Employer-Provided Health Insurance Offer and Coverage is an Internal Revenue Service (IRS) tax form reporting information about an employee's health coverage offered by an Applicable Large Employer (ALE). ALEs typically have 50 or more full-time employees.

Information from this form also helps determine a taxpayer's eligibility for credits, such as the premium tax credit.

Key Takeaways

• Form 1095-C: Employer-Provided Health Insurance Offer and Coverage is a tax form reporting information about an employee's health coverage offered by an Applicable Large Employer (ALE).
• Applicable Large Employers (ALEs) typically have 50 or more full-time employees.
• The taxpayer does not fill out the form and does not file it with a tax return; employees should keep the form with their records.
• Information from this form also helps determine a taxpayer's eligibility for credits, such as the premium tax credit.
• The premium tax credit is a refundable tax credit payable by the IRS to eligible individuals and families that have obtained health care insurance through the Health Insurance Marketplace in the tax year.

Who Can File Form 1095-C: Employer-Provided Health Insurance Offer and Coverage?

This form is provided by Applicable Large Employers to full-time employees who have been working for one or more months of the calendar year. ALE members must report that information for all 12 months or the entire calendar year for each employee.

Premium Tax Credit

The premium tax credit is a refundable tax credit payable by the IRS to eligible individuals and families and helps them cover the premiums for their health insurance purchased through the Health Insurance Marketplace.

How To File Form 1095-C: Employer-Provided Health Insurance Offer and Coverage

Form 1095-C is a reference document that is not completed by the taxpayer. It is not filed with a tax return. Instead, it should be kept with the taxpayer's records.

• Part I of the form provides information about the ALE member, including their name, address, and phone number, for questions about the validity of the form or to report errors.
• Part II provides information about the health care coverage, if any, provided to the employee. In addition to information about the plan, it also reports employee-required contributions.
• Part III is completed only if the employer offers a self-insured plan. It lists the names of the covered individuals along with their Social Security numbers and dates of birth. This section also confirms uncovered months for the participants.

Form 1095-C is available on the IRS website.

Other Relevant Forms

If Parts I and II are the only sections filled, the employee may also receive a Form 1095-B: Health Coverage, which provides proof of coverage from the insurer chosen by the employer.

Form 1095-B is used by employers to report information to the IRS and to taxpayers about individuals covered by minimum essential coverage and who are not liable for the individual shared responsibility payment.

An individual who obtains health insurance through a Health Insurance Marketplace carrier will receive Form 1095-A: Health Insurance Marketplace Statement. Form 1095-A does not have to be returned to the government. It simply serves as a record of the individual's health care coverage. It includes information such as the effective date of the coverage, the premium amounts paid monthly, and any advance payments of the premium tax credit or subsidy.

What Is 1095-C Form Used For?

Form 1095-C provides information about the health coverage offered by your employer and about whether you enrolled in this coverage. You can use Form 1095-C to help determine your eligibility for the premium tax credit.

Is 1095-C Required for Filing Taxes?

You don't need to include your 1095-C with your tax return or send it to the IRS, but you may use information from the form to help complete your tax return.

How Do I Get My 1095-C Tax Form?

Form 1095-C is provided by your employer (if it has 50 or more full-time employees.) It is also available on the IRS website.

How Do I Fill Out 1095-C?

You can find the specific instructions for 1095-C on the IRS website. Note, though, that the information required will be filled in by your employer.

1. Internal Revenue Service. “ACA Information Center for Applicable Large Employers (ALEs).”
2. Internal Revenue Service. “Form 1095-C, Employer-Provided Health Insurance Offer and Coverage.” Page 2.
3. Internal Revenue Service. "About Form 1095-C, Employer-Provided Health Insurance Offer and Coverage."
4. Internal Revenue Service. "The Premium Tax Credit - The Basics."
5. Internal Revenue Service. “Form 1095-C, Employer-Provided Health Insurance Offer and Coverage.”
6. Internal Revenue Service. "About Form 1095-B, Health Coverage."
7. HealthCare.gov. "How To Use Form 1095-A."
8. Internal Revenue Service. "Health Insurance Marketplace Statements."
9. Internal Revenue Service. "Instructions for Forms 1094-C and 1095-C.” Page 10.

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