Do I File 1095-C with my Tax Return?
As a taxpayer, you may be wondering whether you need to file Form 1095-C, also known as the Employer-Provided Health Insurance Offer and Coverage (EPC), with your tax return. The answer is not a simple yes or no, as it depends on several factors. In this article, we’ll guide you through the process and help you determine if you need to file Form 1095-C with your tax return.
What is Form 1095-C?
Form 1095-C is a form issued by employers or other businesses to provide information about the health insurance offered to their employees. The form is used to report the employer-based coverage and offer of health insurance coverage under Section 6056 of the Patient Protection and Affordable Care Act (ACA). The form is usually sent to employees by January 31st of each year and is required to be filed by employers with the IRS by February 28th (March 31st if filed electronically).
Who Must File Form 1095-C?
Not all employers are required to file Form 1095-C. To determine if you need to file, consider the following:
- Applicability: Form 1095-C is required for employers with the following conditions:
- 50 or more full-time equivalent employees during the preceding calendar year
- Offered health coverage to at least one person (except for certain small employers with fewer than 100 full-time employees)
- Are subject to the Employer Shared Responsibility (ESR) rules
- Assessment of Fair Market Value: The employer must assess whether the coverage offered is at least equal to the Fair Market Value (FMV) of the minimum essential coverage.
Who Does Not Need to File Form 1095-C?
The following employers are exempt from filing Form 1095-C:
- Small employers: Employers with 99 or fewer full-time equivalent employees are generally exempt from filing Form 1095-C
- Certain religious employers: Certain religious employers with 50 or more full-time equivalent employees are exempt from filing Form 1095-C
- Agricultural employers: Agricultural employers are exempt from filing Form 1095-C if they are considered "small employers"
What Should Employers Report on Form 1095-C?
When filing Form 1095-C, employers must report the following information for each full-time employee:
- Employer identification number (EIN): The employer’s EIN, which is the 9-digit number assigned by the IRS
- Employee Social Security number or individual taxpayer identification number (ITIN): The employee’s Social Security number or ITIN
- Health coverage offered: Whether the employer offered health coverage to the employee and, if so, the months of coverage provided
- Employer-sponsored coverage: Whether the employer-sponsored coverage was considered "minimum essential coverage" or not
- Offer of employer-sponsored coverage: Whether the employer offered coverage that met the minimum value standard (MVS) of the Affordable Care Act
What Are the Consequences of Not Filing Form 1095-C?
The IRS may assess a $100 penalty for failure to file Form 1095-C or furnishing incorrect information. Additionally, the IRS may also impose penalties on employers that do not:
- Offer coverage to at least 95% of full-time employees and dependents
- Offer coverage that meets the minimum value standard (MVS) and the minimum essential coverage standard
Conclusion
In conclusion, not all employers are required to file Form 1095-C, and it is essential to determine whether you fall under the reporting requirements. If you are an employer subject to the filing requirements, you must file the form by February 28th (March 31st if filed electronically) and report the required information for each full-time employee.
Additional Resources
- IRS Resource Page: 1095-C
- ACA Compliance Guide: Form 1095-C
- PCORI Reporting Requirements for Employers
Disclaimer
This article is for general information purposes only and is not intended to serve as legal or professional advice. It is recommended to consult with a qualified tax professional or legal advisor to ensure compliance with all relevant laws and regulations.