Tax season 2016 is well under way. This tax season is the second year that the Affordable Care Act has an effect. Last year was the first year the Form 1095-A was distributed to taxpayers who purchased health insurance from the exchange. This form was used to (1) prove that individuals had qualifying health insurance coverage to avoid the Shared Responsibility Penalty and (2) calculate the Premium Subsidy available to qualifying individuals to help them afford their health insurance premiums.
This year, two more forms will be issued to taxpayers so they can prove that they had qualifying health insurance throughout 2015. Form 1095-C will be issued to employees who work for Applicable Large Employers (ALEs). ALEs are employers that employ 50 or more full time equivalents and are required to provide their employees with health insurance under the Affordable Care Act.
Form 1095-B will be issued by all other providers of health insurance (e.g., small employers, Medicaid, etc.)
The deadline for the Marketplace to provide Form 1095-A is February 1, 2016. The deadline for coverage providers to provide Forms 1095-B and employers to provide Form 1095-C has recently been extended to March 31, 2016.
Yes, Forms 1095-B and 1095-C don’t have to be issued until March 31, 2016 while the deadline to file tax returns this year is April 18 (Emancipation Day is being recognized on April 15 so the filing deadline is April 18). Many taxpayers therefore won’t receive Forms 1095-B or 1095-C by the time they file their tax returns. It is not necessary to wait to receive these two forms in order to file. Taxpayers may instead rely on other information about their health coverage and employer coverage to prepare their returns. Taxpayers should retain health insurance statements and other proof that they had coverage during 2015.
Taxpayers who will receive Form 1095-A must wait until they receive this form to file their tax returns. The form has important information required to calculate the Premium Subsidy.
To see how this applies to you, give us a call at 248-538-5331.
Buzzkill Disclaimer: This post contains general tax information that may or may not apply in your specific tax situation. Please consult a tax professional before relying on any information contained in this post.