Form 1095-C is a tax form sent from employers to employees that describes the health insurance that is available to them. This annual statement is required by law under the Affordable Care Act. Companies must send 1095-Cs to their workers if they have 50 or more full-time employees.
What should I do with a 1095-C?
Employees who receive a 1095-C from their employer do not need to use it to file their taxes. The IRS recommends that individuals not wait to receive 1095-Cs to file their return.
Form 1095-C is an informational document that the IRS recommends you to keep it along with your other tax documents in case you need to verify that you were offered health insurance for that year.
Only employers with 50 or more full-time workers, or full-time equivalents must file Form 1095-C with the IRS.
When do you have to file Form 1095-C?
For the 2024 tax filing season, employers must send their employees Form 1095-C by March 1, 2025.
What happens if I don’t report my Form 1095-C?
If you are an employee and you don’t include your 1095-C with your tax return, that’s fine. You do not need to file or report your Form 1095-C. If you are an employer and do not provide an accurate 1095-C to the IRS you could face a penalty of $310 for each return, though the penalty cannot exceed $3,783,000. If you are an employer and fail to provide your employees with their 1095-C statements, you could also owe $310 per return.
Is Form 1095-C tax deductible?
For employees, Form 1095-C itself is not deductible, since it is just a statement about your health insurance. However, suppose you paid health insurance premiums on an employer-offered health insurance plan after your taxes were taken out, or you paid premiums on a policy you bought on your own. In that case, you may be eligible to deduct your insurance premiums. Your 1095-C may help determine if you can deduct your premiums.
Is there an extension to file Form 1095-C?
If you’re an employer and need more time to file your 1095-C with the IRS, you can get an automatic 30-day extension by completing Form 8809 on or before your tax return deadline. You can submit that form on paper or electronically.
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