Updated for tax year 2023.
At a glance:
You’ll receive Form 1095-A if you purchased insurance through the Health Insurance Marketplace.
Forms 1095-B and 1095-C are for informational purposes only and don’t need to be reported on personal income tax returns.
It’s possible to receive multiple forms (A, B, and C) in a year if you have different types of health insurance coverage.
You’re likely familiar with Form W-2 as the usual tax document that finds its way into your mailbox during tax season. However, you may also receive a version of a 1095 Tax Form, which is related to the Affordable Care Act.
While many of us already understand what these forms mean, others are still trying to decipher what to do with this extra document. To help clear up any confusion as you file your 2023 tax return, here are answers to a few of the most common Form 1095 questions.
What’s the difference between Form 1095-A, 1095-B, and 1095-C?
What is 1095-A?
The 1095-A form (Health Insurance Marketplace Statement) is for people who have health insurance through the Health Insurance Marketplace, often called an exchange. You should receive this form by mid-February, so make sure to wait to file your taxes until you have it.
You’ll use Form 1095-A to fill out another document, Form 8962, Premium Tax Credit. The premium tax credit (PTC) is a refundable credit that helps cover health insurance premiums purchased through the Health Insurance Marketplace. Form 1095-A will help you reconcile your PTC.
What is 1095-B?
The 1095-B form (Health Coverage) is mailed to individuals by the insurer to report minimum essential coverage. The form details the type of coverage, the months of the year the coverage was provided, and the names of those covered by the plan.
What is 1095-C?
The 1095-C form (Employer-Provided Health Insurance Offer and Coverage Insurance) is issued to employees by companies with 50 or more full-time employees. This form states the health insurance coverage the employer offered and whether the employee took advantage of it.
Why do I need Form 1095-B or Form 1095-C?
Forms 1095-B and 1095-C are for informational purposes only, and you don’t need to report them on your personal income tax return.
Can I receive IRS Form 1095-A, Form 1095-B, and 1095-C all in one year?
Yes — it’s possible. If you are covered by a marketplace policy part of the year, and a non-marketplace policy for another portion of the year, you may receive more than one type of form.
In addition, if you work for a company with 50 or more employees and the coverage provided by that employer is purchased through an insurance company, you will then receive 1095-B from the insurance company as well as 1095-C from your employer.
Where do I enter information from IRS Form 1095-A, 1095-B, or 1095-C on my tax return?
If you need to file Form 1095-A with TaxAct®, you can do so using our tax prep software. We ask you easy-to-follow Q&A interview questions and guide you through the steps you need to take. We can help you add a new Form 1095-A or edit an existing one if necessary.
Forms 1095-B and 1095-C are not required to be filed with your tax return — just keep them with your records.
Do I include Form 1095-B or Form 1095-C with my tax return?
Keep Form 1095-B and Form 1095-C with your records. Refrain from sending either form to the IRS with your tax return. The IRS receives a separate copy of any forms sent to you by your employer and/or the insurance provider.
You also don’t need to wait to receive the forms before filing your return if you’re sure of the health insurance coverage you received throughout the year. However, if you expect to receive Form 1095-A, wait until you get it before you file so you can report the correct information from the form on your return.
What if I have adult children on my insurance plan, but they file their own tax returns?
The insurance provider and your employer are only required to provide one Form 1095-B or Form 1095-C to the primary policyholder. If that’s you, give copies to your adult children and any other people who are covered under your plan but file their own tax returns.
This article is for informational purposes only and not legal or financial advice.
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