Form 1095-C: Discover the importance of Form 1095-C for employers and employees. Stay compliant with ACA reporting to avoid tax penalties.
What Is Form 1095-C?
Form 1095-C is a tax form used in the United States to report information about the health insurance coverage offered by employers to their employees.
It is specifically related to the Affordable Care Act (ACA) compliance.
Officially titled “Employer-Provided Health Insurance Offer and Coverage,” this form is required for large employers with 50 or more full-time employees.
It provides details about the health insurance coverage offered by the employer and helps the IRS determine if the employer is complying with the ACA requirements.
Compliance with ACA reporting requirements is crucial to avoid potential tax penalties.
Employer Responsibility for Form 1095-C
- Employers with 50 or more full-time employees are required to file Form 1095-C with the Internal Revenue Service (IRS) and provide a copy to each employee.
- The form includes details about the health insurance coverage offered by the employer, and it helps the IRS determine if the employer is complying with the ACA requirements.
Form 1095-C FAQ
For more information or specific questions related to Form 1095-C, please refer to the Frequently Asked Questions section below.
1. Do employees need Form 1095-C to file their taxes?
No, employees do not need Form 1095-C to file their taxes. Although, it provides information about the health coverage gives by the employer, it is not necessary for individual tax filing.
2. What should employees do if they have not received Form 1095-C from their employer?
If an employee has not received Form 1095-C from their employer, they should contact their employer for a copy. Employers are need to provide employees with a copy of Form 1095-C for ACA reporting compliance.
3. How does Form 1095-C affect an employee’s tax filing?
Form 1095-C does not directly impact an employee’s tax filing. It primarily serves as a tool for employers to report health insurance coverage provided to their employees. Ensure compliance with the Affordable Care Act (ACA) requirements.
For the 2023 tax filing season, employers are required to file Form 1095-C with the IRS by Feb. 28, 2024 if filing on paper, or by March 31, 2024 if filing electronically. Employers must also send their employees Form 1095-C by March 1, 2024 for the 2023 filing year.
Consequences of Not Reporting Form 1095-C
As an employee, if you do not include your 1095-C with your tax return, there are no repercussions, as it is not required for individual tax filing.
For employers, failure to provide accurate 1095-C forms to the IRS may result in penalties of $310 for each return, with a maximum penalty of $3,783,000. Additionally, if employers fail to provide their employees with their 1095-C statements, they could also owe $310 per return.
In summary, Form 1095-C serves as a tool for both employers and the IRS to ensure compliance with the Affordable Care Act. While employees don’t need the form to file their taxes, employers must fulfill their reporting obligations to avoid potential penalties.
For further questions or specific inquiries regarding Form 1095-C, employees are advise to consult with their employer or a qualified tax professional.
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