Form 1095-B details essential health coverage information as outlined by the Affordable Care Act (ACA). Discover how this vital document simplifies verification of minimum essential coverage for taxpayers.
Key Takeaways
- Health Insurance Records: Form 1095-B holds coverage details for taxpayers, spouses, and dependents.
- ACA Mandate Compliance: The form ensures compliance with the ACA’s individual health insurance mandate.
- Simple Tax Filing: Use information from Form 1095-B to indicate health insurance coverage on your tax return. No need to send the form to the IRS.
Mastering Form 1095-B: Health Coverage
Form 1095-B includes coverage information for taxpayers, spouses, and dependents tied to an insurance provider or a self-insured employer.
Most employer-provided health insurance plans meet the ACA’s minimum essential coverage requirements, as do government plans like Medicare and Medicaid.
Understanding Shared Responsibility Payment
Before the 2020 plan year, lacking minimum essential health insurance could result in a penalty, termed shared responsibility payment. Post-2021, the Tax Cuts and Jobs Act removed this penalty. Providers, however, still need to notify participants about form availability on their website and furnish it upon request.
State-Specific Penalties
Some states penalize residents without health insurance. Massachusetts, for instance, charges 50% of the lowest-cost plan’s price. State-specific penalties and exemptions vary, so consult local regulations.
Differentiating Form 1095-B, Form 1095-A, and Form 1095-C
Healthcare providers issue Form 1095-B. Marketplace insurance participants get Form 1095-A. Employees of companies with 50+ employees may receive Form 1095-C as well or instead of Form 1095-B.
Filing Instructions for Form 1095-B
Menages health insurance details: Verify and report insurance coverage on your tax return using Forms 1095-A, 1095-B, and/or 1095-C without having to submit the actual forms.
IRS Form 1095-B
All Form 1095-B pages are accessible via the IRS website.
Importance of IRS Form 1095-B
Sent to those with ACA-specified minimum essential coverage, Form 1095-B reflects health coverage durations and insurers for the tax year.
Using IRS Form 1095-B
Use Form 1095-B specifics on your tax return—no need to submit the form itself.
Forms 1095-B vs. 1095-C: What’s the Difference?
- Form 1095-B: Sent by health insurance providers indicating coverage status.
- Form 1095-C: Issued by large employers (50+ employees) for employer-provided health insurance.
Related Terms: ACA, IRS forms, Form 1095-A, Form 1095-C, health insurance coverage
References
- Internal Revenue Service. “About Form 1095-B, Health Coverage”.
- Internal Revenue Service. “Instructions for Forms 1094-B and 1095-B (2020), General Instructions for Forms 1094-B and 1095-B”.
- Internal Revenue Service. “Individual Shared Responsibility Provision”.
- Internal Revenue Service. “Instructions for Forms 1094-B and 1095-B (2020)”.
- U.S. Congress. “H.R.3590 - Patient Protection and Affordable Care Act”.
- U.S. Centers for Medicare & Medicaid Services. “Exemptions From the Requirement to Have Health Insurance”.
- Commonwealth of Massachusetts. “TIR 21-1: Individual Mandate Penalties for Tax Year 2021”.
- Internal Revenue Service. “About Form 1095-A, Health Insurance Marketplace Statement”.
- Internal Revenue Service. “About Form 1095-C, Employer-Provided Health Insurance Offer and Coverage”.
- Internal Revenue Service. “Form 1095-B: What You Need to Do With This Form”.
- Internal Revenue Service. “Prior Year Products”.
- Internal Revenue Service. “Form 1095-B: Health Coverage”, Pages 1-3.
