Employers subject to the Affordable Care Act (ACA) must file Form 1095-C each year to report the type of health insurance coverage they offered to full-time employees. One of the most important sections is Line 14, where employers enter the correct 1095-C Line 14 Codes to show the IRS what kind of coverage was offered each month.
Using the right form 1095 c line 14 codes is essential for meeting ACA Employer Shared Responsibility Provisions and determining whether an employee may qualify for a Premium Tax Credit. Mistakes on Line 14 can lead to compliance issues and possible IRS penalties.
What Is Line 14 on Form 1095-C?
Line 14 of Form 1095-C asks: “What type of health coverage did you offer this employee for this month?” Employers must enter a two-digit code for each month of the year—or once if the offer was the same for all 12 months. These form 1095 c line 14 codes identify:
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The type of coverage offered
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Who the offer was made to (employee, spouse, dependents)
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Whether the offer met Minimum Essential Coverage (MEC) and affordability standards
1095-C Line 14 Offer of Coverage Codes
Below are the most common 1095-C Line 14 Codes used for ACA reporting. These apply to tax year 2023 and beyond unless the IRS updates the codes.
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1A – Qualifying Offer
MEC providing minimum value to employee, spouse, and dependents.
Employee contribution for self-only coverage ≤ 9.12% of the federal poverty line (2023).
→ Allows simplified reporting. -
1B – MEC with minimum value to employee only
Not offered to spouse or dependents. -
1C – MEC with minimum value to employee and dependents
Not offered to spouse. -
1D – MEC with minimum value to employee and spouse
Not offered to dependents. -
1E – MEC with minimum value to employee, spouse, and dependents
Most comprehensive “full coverage” code. -
1F – MEC that does not provide minimum value
Coverage offered but didn’t meet the minimum value standard. -
1G – Offer to individuals not full-time for any month
Used for part-time employees or COBRA recipients. -
1H – No offer of coverage
Use when no coverage was offered during the month. -
1L–1S – ICHRA-Related Codes
Apply when offering an Individual Coverage Health Reimbursement Arrangement (ICHRA).-
1L – ICHRA to employee only, affordability based on residence ZIP code.
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1M – ICHRA to employee + dependents (not spouse).
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1R – ICHRA offered but not affordable.
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1S – ICHRA to a non-full-time employee.
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Why Correct Codes Matter
Accurately completing Form 1095-C Line 14 Codes ensures the IRS understands your health coverage offers and confirms your compliance with ACA requirements. Using the wrong form 1095 c line 14 codes can trigger penalties, incorrect tax credit calculations for employees, and additional IRS inquiries.