When you receive Form 1095-C from your employer, it provides information about the health insurance coverage offered to you and helps you complete your tax return. Here’s what you should do:
1. Review Form 1095-C for Accuracy
- Check that your name, Social Security Number (SSN), employer’s information, and coverage details are correct. Any inaccuracies should be reported to your employer’s HR or benefits department for correction.
2. Understand What the Form Tells You
- Form 1095-C includes key information:
- Part I: Lists your personal and employer information.
- Part II: Details the type of health coverage offered to you, the months coverage was available, and whether it meets minimum standards under the Affordable Care Act (ACA).
- Part III: (If applicable) Shows whether you and any covered dependents were enrolled in employer-provided coverage for each month.
3. Keep the Form for Your Records
- You don’t need to attach Form 1095-C to your tax return, but keep it in your files. It serves as proof that you were offered and/or enrolled in coverage, which can be useful if the IRS has questions about your healthcare coverage.
4. Use Form 1095-C for Filing Taxes if Necessary
- While you don’t file Form 1095-C with your return, you may use the information from it if you received an advance premium tax credit through the Marketplace. The form helps verify whether you qualified for that credit or if you need to make any adjustments on Form 8962 (Premium Tax Credit).
5. Confirm Coverage Compliance (if required)
- Some states, such as California, Massachusetts, New Jersey, Rhode Island, and Washington, D.C., have their own health insurance mandates. You may need to report coverage information on your state tax return.
6. If You Have Multiple Forms 1095-C
- If you worked for more than one large employer, you may receive multiple Forms 1095-C. Each form should be reviewed separately, but you only need to keep them for your records.
Summary
In summary, Form 1095-C is a record of health coverage offered by your employer. While it’s not filed with your tax return, it can be useful if you need to verify health coverage or qualify for a premium tax credit. Be sure to keep it in a safe place with your other tax records.
