From this January, in addition to your regular W-2 form from your employer you can receive a new form related to the affordable care Act; Form 1095-C.
If you bought or received health insurance outside of Medicare exchanges in 2015, and you have worked for a major employer, to find 1095-C form health insurance provided by the employer and offer coverage , to arrive in your mailbox. A copy of this form will also be sent to the IRS.
This is the first year the Internal Revenue Service (IRS) has required most companies to provide the 1095-C form. Employers have until 31 March 2016 to distribute the form.
What 1095-C form?
Form 1095-C reports to the IRS that you have a minimum essential coverage under the Affordable Care Act (ACA) and months of the year you had coverage.
Why is it so important to prove that I had a minimum essential coverage?
under the ACA, you must have coverage for yourself, your spouse and your dependents for ten months of the year in 2015, or you may have to pay a penalty.
This penalty is called "shared Individual payment of liability."
penalty for 2015 yields (due April 18, 2016) is the highest of:
- 2 percent of your household income, or
- $ 325 per adult and $ 162.50 per child under 18 (up to $ 975 for a family)
While penalties for 2015 are stiff, they spike even higher in 2016If you do not meet the minimum essential coverage requirements in 2016, the trouble you might face is the greater of 2 5 percent of your household income or $ 695 per adult and $ 347.50 per child under 18 (up to $ 2,085 for a family).
There are many exceptions, however, it may mean that you will not be liable for the penalty.
What is the difference between form 1095-A, 1095 B and 1095 C?
Form 1095-A, Statement of the insurance market disease is for people who have health insurance the insurance market disease, often called an exchange.
When preparing your federal return in 2015, you will need to use this information to complete your income tax return, claim input tax credits on premiums and settle tax credit payments.
Form 1095-B, health coverage, should come in the mail if you purchased or received insurance outside of an exchange.
Form 1095-C, provided by the employer illness insurance provides coverage and is required by companies that meet the conditions to qualify as applicable large employers.
This usually includes employers with more than 50 full-time employees in the previous calendar year.
How can I enter information 1095-C form in TaxAct?
TaxAct easy Q & A interview will ask you questions about your coverage, including how many months you have had insurance coverage and has been covered by the plan.
you should be able to find answers to your 1095-C form. If everyone included in your tax return had coverage for all 12 months of 2015, you just check a box and you're done!
If you or someone else was missing a blanket, TaxAct will then guide you to enter the appropriate information.
Should I attach the 1095-C form on my tax return?
No. 1095-C form is only for your records. Do not attach it to your return. Your employer has already sent a copy of this form to the IRS, which will be used to match the information you enter.
I want to file my tax return, but my 1095-C form is not yet come. What should I do?
You do not have to wait to receive the 1095-C form to your return. Just enter the information you know about your coverage by answering questions throughout TaxAct Q & A interview.
Once you receive the form, keep it in a safe place in case you need to reference later.
Can I get a copy of the 1095-C form for my adult children who are on my insurance plan?
Your employer is only required to provide a 1095-C form as the holder of the primary font. If you have other people on your plan, such as adult children, you need to make copies for them so they can prepare their tax returns.
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