What are line 14 ACA codes?

Line 14 codes on IRS Form 1095-C are two-character Series 1 codes that employers use to report the type of health insurance coverage offered to an employee, their spouse, and their dependents.

📋 Common Line 14 Series 1 Codes

• 1A: Qualifying offer providing Minimum Essential Coverage (MEC) and Minimum Value (MV) to the employee, with affordable spousal and dependent coverage.
• 1B: MEC offered to the employee only (no spouse or dependents).
• 1C: MEC providing MV offered to the employee and dependents (no spouse).
• 1D: MEC providing MV offered to the employee and spouse (no dependents).
• 1E: MEC providing MV offered to the employee, spouse, and dependents.
• 1F: MEC not providing MV offered to the employee, spouse, or dependents.
• 1G: Self-insured coverage offered to a non-employee or former employee (like a retiree) for the entire year.
• 1H: No offer of coverage or offer that does not qualify as MEC.
• 1J: MEC providing MV offered to employee and conditional offer to spouse.
• 1K: MEC providing MV offered to employee and dependents, plus conditional offer to spouse.
• 1L–1U: Specific codes used for Individual Coverage Health Reimbursement Arrangements (ICHRA).

Affordable Care Act (ACA) 1095-C Codes Guide are alphanumeric codes used by large employers on IRS Form 1095-C to report health insurance coverage details and compliance with the Affordable Care Act (ACA).

These codes appear in Part II of Form 1095-C and are split into two main series to inform the IRS about insurance offers, enrollment status, and penalty exemptions.

Series 1 Codes (Line 14)

Series 1 codes describe the type of health insurance coverage offered to an employee, their spouse, and their dependents.

• 1A: A qualifying offer providing Minimum Essential Coverage (MEC) and Minimum Value (MV) to the employee, spouse, and dependents at an affordable rate.
• 1B – 1E: Offers specifying different combinations of coverage given to the employee, spouse, or dependents.
• 1F: Coverage offered met MEC only and did not provide Minimum Value.
• 1H: No offer of coverage was made, or the offer did not qualify as MEC.
• 1T – 1U: Specialized codes used for Individual Coverage Health Reimbursement Arrangements (ICHRA) reporting.

Series 2 Codes (Line 16)

Series 2 codes explain an employee's enrollment status and detail the employer's "safe harbor" protections against penalties.

• 2A: The employee was not employed during the month.
• 2B: The employee was not full-time during the month.
• 2C: The employee enrolled in the coverage offered.
• 2D: The employee was in a limited non-assessment period (such as a new hire waiting/measurement period).
• 2F – 2H: Affordability safe harbor codes used when an employee was offered coverage but did not enroll, based on metrics like W-2 wages, the Federal Poverty Line, or the employee's rate of pay.

ACA reporting codes required for Form 1095-C are categorized into Series 1 (Line 14) to describe the offer of coverage and Series 2 (Line 16) to explain safe harbors and enrollment status.

Line 14 Codes (Offer of Coverage)

Line 14 codes tell the IRS what type of health coverage, if any, was offered to an employee, their spouse, and their dependents.

• 1A: Qualifying Offer (Minimum Essential Coverage and Minimum Value offered to the employee, plus affordable coverage for spouse and dependents).
• 1B - 1E: Various combinations of coverage offers to the employee, spouse, or dependents only.
• 1F: Minimum Essential Coverage offered that was not Minimum Value.
• 1G: Offer of coverage to a non-employee (such as a former employee on COBRA) for some or all of the year.
• 1H - 1J / 1K: No offer of coverage, or specialized ICHRA (Individual Coverage Health Reimbursement Arrangement) offers.

Line 2 Series Codes (Safe Harbors & Exceptions)

Line 16 codes explain why an employee was not enrolled or indicate an affordability safe harbor.

• 2A: Employee not employed during the month.
• 2B: Employee not a full-time employee.
• 2C: Employee enrolled in the coverage offered.
• 2F, 2G, 2H: Section 4980H affordability safe harbors (W-2, Federal Poverty Line, and Rate of Pay methods).
• 2I: Non-assessment period for multiemployer plan interim rule relief.

For a full reference list and guidance, check out the ACA 1095-C Codes Cheat Sheet and the detailed breakdown on the ACAwise Services Guide.

Box 14 on a W-2 is a general "catch-all" memo field where employers report miscellaneous information that does not fit into any other box.

Unlike Box 12, the IRS does not provide a standard, official list of codes for Box 14. This means employers and payroll providers make up their own shorthand labels.

Common Box 14 Entries

While codes vary by company and state, you will frequently see labels representing:

• State Insurance: State Disability Insurance (SDI, CASDI), State Unemployment Insurance (SUI), or Paid Family Leave (FLI, PFL).
• Deductions: Union dues (UNION or UD) or after-tax contributions.
• Benefits: Vehicle lease values, educational assistance, or health insurance details.
• Special Items: Clergy housing allowances or railroad retirement taxes (RRTA).

Do They Affect Your Tax Return?

• Most are informational only: The tax impact of these items (such as pre-tax deductions) has usually already been calculated and applied in Boxes 1 through 6.
• Some require action: State disability taxes paid out-of-pocket can sometimes be claimed on state returns or as an itemized deduction on federal returns. Specialized items like S-corporation health insurance or specific stock options may also need to be entered into your tax software carefully.
• Check your software guidance: If you are using tax software like TurboTax Support or TaxSlayer, you can usually type in the exact text shown on your form or select "Other" if it does not match a provided drop-down menu. You can learn more about employer reporting requirements through guides like Tax1099's W-2 Box 14 Guide.

Line 16 of Form 1095-C uses Series 2 codes (codes 2A through 2I) to report employee enrollment status, employment status, and Section 4980H affordability safe harbors.

Common Line 16 Codes (Series 2)

• 2A: Employee not employed during the month (do not use for the month an employee terminates).
• 2B: Employee not a full-time employee (not full-time and did not enroll in coverage, or terminated during the month).
• 2C: Employee enrolled in health coverage offered.
• 2D: Employee in a Section 4980H limited non-assessment period (such as a new hire waiting period).
• 2E: Multiemployer interim rule relief (applies to certain union plans).
• 2F: Section 4980H W-2 safe harbor (coverage was affordable based on the employee's W-2 wages).
• 2G: Section 4980H Federal Poverty Line (FPL) safe harbor (coverage was affordable based on the federal poverty line).
• 2H: Section 4980H Rate of Pay safe harbor (coverage was affordable based on the employee's rate of pay).
• 2I: Qualifying offer transition relief (used by specific qualifying employers).

You can review the official definitions and instructions directly at the IRS Instructions for Forms 1094-C and 1095-C.