New health care information reporting forms

Health coverage providers and certain employers will provide health coverage statements to covered individuals for the first time in 2016. The IRS issued two Health Care Tax Tips about new health care law information reporting forms: Form 1095-B, Health Coverage, and Form 1095-C, Employer-Provided Health Insurance Offer and Coverage.

While the IRS does not require taxpayers to submit documentation of health coverage with their tax returns, gathering documents in advance will help with return preparation at tax time. Beginning with records for tax years 2014, taxpayers should keep insurance cards, explanation of benefits statements from their insurer, Forms W-2 or payroll statements reflecting health insurance deductions, records of advance payments of the premium tax credit and other statements indicating that they or a family member had and maintained health care coverage.

Form 1095-B is used to report certain information to the IRS and taxpayers about individuals who are covered by minimum essential coverage and therefore aren’t liable for the individual shared responsibility payment. By Jan. 31, 2016, health coverage providers should furnish you a copy of Form 1095-B, if you are identified as the “responsible individual” on the form. Form 1095-C is used to report information to the IRS and employees about individuals who have minimum essential coverage under the employer plan and therefore are not liable for the individual shared responsibility payment for the months that they are covered under the plan. Employers with 50 or more full-time employees in the previous year use Form 1095-C to report the information required about offers of health coverage and enrollment in health coverage for their employees. An employer must furnish a Form 1095-C to each of its full-time employees by Jan. 31 of the year following the year to which the Form 1095-C relates.

Like last year, the Health Insurance Marketplace will issue Form 1095-A, Health Insurance Marketplace Statement, in January 2016 to individuals enrolled in Marketplace coverage during 2015. If claiming the premium tax credit, taxpayers will need information about any advance credit payments received through the Health Insurance Marketplace, the type of coverage obtained at the Marketplace, the premiums paid and the months covered.


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