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Don’t Understand IRS Tax Form 1095-C? You’re Not Alone

The Affordable Care Act (ACA or “Obamacare”) comes with new forms and rules that can be challenging – especially concerning IRS Form 1095 (Employer-Provided Health Insurance Offer and Coverage Insurance).  In fact, so many people complained about it that the IRS extended deadlines by two months.  So, if you don’t understand the form, you’re not alone – and Surgent can help.

IRS Form 1095-C – Explained

The ACA requires employers with at least 50 full-time workers to offer health insurance to employees.  Employers must provide each employee (regardless of whether they participate or not) with a 1095-C statement which provides details on:

  • coverage offered to the employee
  • lowest-cost premium available to the employee
  • months of the year when the coverage was available

This form became mandatory with the 2015 tax year.  Unfortunately, so did many others – which resulted in so much confusion that the IRS gave employers a two-month extension of their deadlines related to the forms. They now have until March 31 to distribute the 1095-C forms to workers.

One of more confusing areas is that many employers don’t realize that they must also complete IRS Form 1094-C along with Form 1095-C.  One of the most frequently asked questions employers have is – what’s the difference between to two?

1095-C & 1094-C: What’s the Difference?

Form 1094-C acts as a “cover sheet” for the 1095-C.  It provides the IRS with information about the employer, including:

  • Address, phone number, employer identification number
  • Number of employees
  • Name of a contact person
  • Number of 1095-C forms are being sent

Here’s where many employers go astray: Form 1095-C is sent to both the IRS and employees; Form 1094-C is only sent to the IRS.  The IRS has also extended the filing deadline of the 1094-C until May 31 or June 30 if filed electronically.

Need More Information? Surgent Can Help

Surgent’s webinar, Nuts and Bolts of Form 1095-C Preparation: Who, When, and How (FRMC), is designed to specifically identify which employers are required to file Form 1095-C and to assist preparers in completing this form correctly, with special attention to the codes required to complete Part II of the form.  The webinar covers these important topics: 

  • When Form 1095-C is required to be filed
  • Which businesses are required to file Form 1095-C
  • How to determine which codes apply to applicable lines on Form 1095-C

At Surgent, we design all of our educational programs with specific learning objectives.  For this webinar, those include:   

  • Determining when a client must prepare Form 1095-C
  • Preparing tax professionals to complete Form 1095-C
  • Understanding and applying the codes required to complete Form 1095-C

Surgent provides thousands of CPE webinars, self-study courses, CPE packages, and live seminars every year for accounting, tax, and financial professionals all across the country – and has for over 30 years.  Experience matters.  Let us prove it.  Sign up for a Surgent course today.

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