Form 1095-C: Employer-provided health insurance coverage

While you may not naturally think taxes and healthcare are intertwined, believe it or not, they are. Whether it’s reporting health insurance coverage for your household and the potential amounts of healthcare deductions, healthcare and taxes, in some ways, go hand in hand.

A series of 1095 tax forms are specific to healthcare coverage — Form 1095-A, Form 1095-B, and Form 1095-C. They report healthcare coverage amounts for the year to the Internal Revenue Service (IRS). This post will outline details of the Form 1095-C. Specifically, we’ll cover “What is a Form 1095-C?” who gets one, “What is the 1095-C form used for?” and more.

What is a 1095-C form?

Large employers (of 50 or more full-time employees) provide Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, to full-time employees who have been working at their organization for one or more months during a calendar year.

As the name states, the form outlines what health insurance the company offers (whether you take it or not) and what your coverage is (if you do take it).  The form also includes all family members (spouse and any dependents) who are covered individuals due to that individual’s enrollment.

Why did I get a 1095-C if I don’t have insurance?

If you declined medical insurance coverage from your employer, you might be stumped as to why you’re getting an insurance-related tax form from them. As noted above, your company is required to provide the form even if you, the eligible employee, didn’t take the medical coverage. For example, you might have declined the offer for this employee benefit because you are on your spouse’s insurance. 

What is a Form 1095-C used for?

If you’re wondering what the form is used for, there are a few applications.

First, this form is required by law. An applicable large employer (ALE) must report the information to the IRS and each full-time employee who is eligible to receive healthcare benefits.

Secondly, you’ll use Form 1095-C to accurately complete your taxes. For example, if you pay premiums after-tax you are potentially eligible to deduct them if you itemize deductions.

Form 1095-C instructions

Form 1095-C has several parts. Let’s dig into what it shows:

• Part I of this IRS form provides information about the employer, including their contact information, in case the IRS has questions about the form or sees an error.
• Part II provides information about the employee’s health coverage. It states information about the plan and reports required employee contributions.
• Part III is filled out only if the employer provides a self-insured plan. This section lists the names of the covered employees, along with their corresponding Social Security numbers and dates of birth. Part III also validates uncovered months for the employees, if applicable.

You can view further Form 1095-C instructions on the IRS website.

Do you need to file Tax Form 1095-C?

No, Tax Form 1095-C is a reference tax form and doesn’t need to be completed by you, the taxpayer. Your employer will send a copy of Form 1095-C to the IRS.

Additionally, it isn’t filed or attached to your individual tax return that you file. Keep it in your tax records, as you could be audited for up to three tax years.

Note: This form used to have more significance when the healthcare tax penalty was in effect. It went away in 2019. Previously, taxpayers who didn’t have minimum essential health insurance coverage or qualify for an exemption were required to pay a penalty on their tax return.

How do I get my 1095-C?

If you work full-time for a qualifying large employer, they will send Form 1095-C to you each year at the end of January. Again, you don’t need to attach this form to your individual tax return – it’s simply used as a reference for tax filing.

Get help navigating Form 1095-C

If you need help filing your taxes and using Form 1095-C this year or other healthcare tax topics, we can help. Whether you choose to file with a tax pro or file with H&R Block Online, you can rest assured that we’ll get you the biggest refund possible.