How do I report COBRA on 1095 C?
Asked by: Rigoberto Dach | Last update: October 4, 2025Score: 4.6/5 (52 votes)
How do I show COBRA coverage on 1095-C?
Form 1095-C, Part II, line 14 enter applicable Series 1 Code the offer of coverage made based upon COBRA eligibility (e.g., employee only – 1B if only the employee had been enrolled prior to the reduction in hours; employee, spouse, and dependent children –1E if the employee, spouses, and dependents had been enrolled ...
Do I get a 1095 if I am on COBRA?
If you had job-based health coverage. Depending on the kind of job-based coverage you had (including COBRA or retiree coverage), you may get one of these from your employer or insurance company: Form 1095-B, Health Coverage. Form 1095-C, Employer-Provided Health Insurance Offer and Coverage.
How do I claim COBRA on my taxes?
Are my COBRA premiums deductible? Yes they are tax deductible as a medical expense. There isn't necessarily a “COBRA Tax Deduction”. You can only deduct the amount of COBRA medical expenses on your federal income tax in excess of 7.5% of your Adjusted Gross Income and then only if you itemize deductions.
Do I need to report 1095-C on my tax return?
Should I attach Form 1095-A, 1095-B or 1095-C to my tax return? No. Although you may use the information on the forms to help complete your tax return, these forms should not be attached to your return or sent to the IRS. The issuers of the forms are required to send the information to the IRS separately.
ACA 1095 Reporting Basics
Does a 1095-C affect my refund?
No, the 1095-C form just proves that you had health coverage. It would not affect your refund as long as you answered the Health Insurance questions accurately. You don't need your form 1095-C to file your tax return. TurboTax will ask you questions about your health coverage but your form 1095-C isn't needed.
Do I report 1095-C on my taxes TurboTax?
No. Forms 1095-B and 1095-C are for your records only, as the IRS doesn't need any details from them. We'll ask a few questions about your health care coverage after you finish entering your deductions and credits in TurboTax.
Are COBRA payments considered income?
If the employee receives the funds and can provide supporting documentation of the payment to the insurer, the funds are also nontaxable. If there is no verification that the employee used the funds to pay for the premiums, the amounts are included in wages and are taxable.
What is the tax credit for COBRA?
If your coverage is from a former employer, such as COBRA or retiree coverage, you can decline the employer coverage, even if it is affordable and provides minimum value, and may be eligible for the Premium Tax Credit for your Marketplace coverage.
Where do I enter COBRA payments in TurboTax?
Enter your COBRA premiums under Medical insurance premiums.
Is COBRA reported on w2?
In general, each employer providing coverage will have to report the prorated cost on the employee's W-2. If the employee is terminated, the employer can also include the COBRA payment amounts paid by the employee after termination.
What is box 15 on 1095-C?
Line 15. This line reports the employee required contribution, which is the monthly cost to you for the lowest cost self-only minimum essential coverage providing minimum value that your employer offered you.
Do I keep my deductible with COBRA?
If you choose a new plan through the Marketplace, your payments toward your deductible or out-of-pocket maximums will reset and go back to zero. However, if you choose COBRA, whatever you have contributed for the plan year will carry over.
Where does 1095-C get reported?
Every employee of a large employer who was eligible for health coverage the previous year should receive a Form 1095-C by mail or electronically by mid-March, even if you declined to sign up for your health plan at work. Information on this form will also be reported to the IRS.
What is the penalty for a 1095-C?
The state may be assessed IRPs for any corrected 1095-Cs beginning when SCO submits the 2021 corrected 1095-Cs to the IRS. 2021 IRP Amounts for each corrected 1095-C: $280: Failure to file a correct 1095-C with the IRS. $280: Failure to provide a correct 1095-C to the employee.
What is the code 1A on the 1095-C?
When reporting offers of coverage in Part II, Line 14 of the Form 1095-C, both codes 1A and 1E indicate an offer of minimum value coverage that is made available to the employee, spouse, and children. The difference is tied to whether the employee contribution meets the FPL safe harbor.
How do I report COBRA payments on my taxes?
According to the Federal tax laws, your unreimbursed COBRA payments are, in fact, deductible as medical expenses on your 1040 tax return in the same way that you can deduct unreimbursed payments for legal medical services provided by physicians, surgeons, dentists, and other medical practitioners, as well as any ...
Who pays for COBRA after termination?
COBRA and Cal-COBRA
COBRA allows former employees, retirees, and their dependents to temporarily keep their health coverage. If you get COBRA, you must pay for the entire premium, including any portion that your employer may have paid in the past.
What is the tax penalty for COBRA?
The minimum tax levied by the IRS for non-compliance discovered after a notice of examination is generally $2,500. The maximum tax for “unintentional failures” is the lesser of 10% of the amount paid during the preceding tax year by the employer for group health plans, or $500,000.
What is d and dd in box 12?
Code DD is only information to you to tell you how much your employer spend for health coverage - you do nothing with it. Code D is the amount of salary deferrals to a 401(k) plan. You do nothing with than either other than enter it on the W-2 screen in box 12 just like it is on the paper W-2.
Is COBRA considered an HRA?
Does COBRA Apply to HRAs? An HRA is just like any other group health plan. Therefore, it is subject to COBRA. Of course, if the employer is otherwise excepted from COBRA (for example, as an employer with fewer than 20 employees), then COBRA will not apply to the HRA.
Is COBRA pre or post tax?
Taxes. Typically, premium payments deducted from your paycheck are pre-tax payments—what you pay toward your premiums doesn't count as income when you file your taxes. With COBRA, you need to pay the premiums with after-tax funds.
Where do I enter 1095-C on my tax return?
In addition to filing your W-2, the IRS requires reporting of health insurance coverage information for the 2023 federal income tax reporting year. While it is not necessary to include the Form 1095-C with your tax return, you'll need to include your insurance information on your tax return.
What happens if I don't report my 1095-C?
Employers who fail to meet filing or furnishing deadlines or report incorrect information on an informational return may be subject to IRS penalties. For forms due in 2025, failure to file an informational return such as the 1095-C can result in a penalty of $330 per form, capped at $3,987,000.
What do I report on 1095-C?
Form 1095-C identifies the employee and employer, months the employee was eligible for coverage, and the cost of the cheapest monthly premium under the plan.