What is a 1095?

The most asked question this tax season is “What is a 1095”?  A 1095 is a form that outlines your health insurance coverage for you and your dependents.  It comes in 3 variations: 1095-A, 1095-B and 1095-C.

If you obtained your health insurance through the health care marketplace, you will receive a form 1095-A.  This form will list who was covered, for what period of time and the amounts paid.  This form will also be used to reconcile any advance credits received.  If you paid too much for your coverage, you will receive additional credit on your tax return.  If you paid too little for your coverage, you will have to repay it on your tax return.

If you obtained your health insurance through a private insurance agent, you will receive a form 1095-B.  This form is similar to the 1095-A except it will only be used to verify that you had health insurance.

If you obtained your health insurance through your employer and they employ at least 50 people, you will receive a form 1095-C.  This is similar to the 1095-B in that it will only be used to verify you had health insurance.

So what happens if you haven’t received a 1095 yet?  If you are expecting a 1095-A, you should already have it.  If not, you can access it online through your marketplace account or call the marketplace for a replacement copy.  Since the 1095-B and 1095-C are required for the first time, the deadline was extended to March 31^st so it may not have arrived.  The 1095 form is mandatory so you will get one.

If you did not have health insurance in 2015, you will need to report it on your tax return and you may be subject to a penalty.  The penalty applies when you can afford (based on your income) health insurance but you choose not to purchase coverage.

When you are ready to file your taxes, provide your tax professional with the appropriate form 1095.