What You Need to Know About Form 1095

Obamacare saw the healthcare system change forever. It also came with three new tax forms. The 1095 family of tax forms is there to determine if you need to make any shared responsibility payments. This is the fee you have to pay if you don’t have a valid health insurance policy.Form1095Pic

If you already have insurance, these forms will help you to determine if you are entitled to receive a tax credit.

What Do the Forms Mean?

  • Form 1095-A is issued by insurance companies participating in healthcare exchanges.
  • Form 1095-B is for companies with fewer than 50 employees who also offer health insurance policies.
  • Form 1095-C is for companies with more than 50 employees offering health insurance policies.

What Information Should You Provide?

The information you need to provide is pretty simple. Enter all the usual information on your tax form, such as name and social security number. You also need to mention how much coverage you have and how much you have paid for said coverage.

For companies, it’s vital that you enter the number of dependents and the level of coverage. It’s that simple.

How Much Am I Entitled to?

You can find out whether you are entitled to a premium tax credit from the IRS website, assuming you already have health insurance. If you don’t have enough health insurance, you can also discover how much you will have to pay to the Federal government.

These forms will be automatically issued to you, so don’t request them directly. This will stop you from having a situation where you have more forms than you need.

Image credit: Muffet

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