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New Affordable Care Act (ACA) Information Forms for 2016 Filing Season

February 04, 2016

John P. Thomas, CPA, MST
Manager

As the 2016 filing season gets underway, many individuals will be receiving new information returns from their employers and/or health insurance providers. The information returns reflect new ACA reporting requirements. Some taxpayers will need to wait to file their returns until they receive their information returns, but most taxpayers will not.

The ACA generally requires certain employers, insurance providers and the Health Insurance Marketplaces to provide statements to covered individuals about their health insurance coverage. Under the ACA, all individuals must carry minimum essential health insurance coverage or make a shared responsibility payment, unless exempt. Individuals who obtain coverage through the Health Insurance Marketplace may qualify for the premium tax credit to help offset the cost of coverage.

Forms

The IRS has developed new forms for ACA reporting:

  • Form 1095-A, Health Insurance Marketplace Statement, the Health Insurance Marketplaces provide Form 1095-A to individuals enrolled in coverage, with information about the coverage, who was covered and when.
  • Form 1095-B, Health Coverage, health insurance providers (for example, health insurance companies) send this form to individuals they cover, with information about who was covered and when.
  • Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, certain employers send this form to certain employees, with information about what coverage the employer offered.                                   

This is the second year that the Health Insurance Marketplaces have provided Forms 1095-A to enrollees. However, this is the first year that health insurance providers and certain employers have furnished Forms 1095-B and 1095-C to covered individuals.

Deadlines

Health Insurance Marketplaces must provide enrollees with Form 1095-A by February 1, 2016. This year, the IRS has given health insurance providers and certain employers more time to furnish Forms 1095-B and 1095-C to covered individuals. The deadline to provide Forms 1095-B and 1095-C is March 31, 2016. Forms 1095-A, 1095-B and 1095-C will be mailed to recipients or provided electronically.

Returns

The IRS has instructed taxpayers who have coverage through the Health Insurance Marketplaces to wait to file their 2015 tax return until they receive Form 1095-A. Many enrollees in Marketplace coverage have received advance payments of the premium tax credit and will need to reconcile the advance payments when they file their 2015 tax returns. These individuals will use the information on Form 1095-A to complete a separate form (Form 8962, Premium Tax Credit).

Individuals with employer-provided health insurance and other qualifying minimum essential health care coverage do not need to wait to file their 2015 tax return until they receive Forms 1095-B or 1095-C, the IRS has instructed. While the information on Forms 1095-B and 1095-C may assist in preparation of a tax return, they are not required, the IRS explained. Individuals may use other forms of documentation, in lieu of the information on Forms 1095-B and 1095-C, to show insurance coverage, such as insurance cards or payroll statements reflecting health insurance deductions. Forms 1095-A, 1095-B and 1095-C are not attached to the taxpayer’s return but are retained for his or her records.

For more information please contact John Thomas at jthomas@blumshapiro.com or 401.330.2771.

Disclaimer: Any written tax content, comments, or advice contained in this article is limited to the matters specifically set forth herein. Such content, comments, or advice may be based on tax statues, regulations, and administrative and judicial interpretations thereof and we have no obligation to update any content, comments or advice for retroactive or prospective changes to such authorities. This communication is not intended to address the potential application of penalties and interest, for which the taxpayer is responsible, that may be imposed for non-compliance with tax law.

 

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