Why am I receiving IRS Form 1095-C?

Receiving IRS Form 1095-C indicates that you were employed by an applicable large employer (ALE) at some point during the tax year, and your employer is subject to the Affordable Care Act (ACA) employer mandate. Form 1095-C is used by ALEs to report information about the health coverage they offered to their full-time employees.

A breakdown of the information typically included in Form 1095-C:

1. Employee and Employer Information:
The form includes your name, address, and Social Security Number (SSN) or Taxpayer Identification Number (TIN), as well as details about your employer.

2. Health Coverage Information:
Details about the health coverage offered to you by your employer, including the months when coverage was available.

3. Affordability and Adequacy of Coverage:
Information about the affordability and adequacy of the health coverage provided by your employer, as required by the ACA.

Form 1095-C serves as documentation of the health coverage options provided by your employer. This information is important for verifying your compliance with the ACA's individual mandate, even though the associated penalty for not having minimum essential coverage was reduced to zero starting in 2019.

When you file your income tax return, you may use the information from Form 1095-C to confirm your eligibility for premium tax credits or to report any exemptions you may qualify for. It's crucial to keep this form for your records and to use the information accurately when completing your tax return.