What is a 1095-C form for?
Asked by: Mr. Omer Goyette | Last update: July 30, 2025Score: 4.4/5 (29 votes)
What is a 1095-C form and what do I do with it?
Applicable large employers – generally those with 50 or more full-time employees, including full-time equivalent employees. Form 1095-C provides information about the health coverage offered by your employer and, in some cases, about whether you enrolled in this coverage.
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.
Does a 1095-C make me get a 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.
How does Form 1095-A affect my taxes?
You will use the information from the Form 1095-A to calculate the amount of your premium tax credit. You will also use this form to reconcile advance payments of the premium tax credit made on your behalf with the premium tax credit you are claiming on your tax return.
What is the Form 1095-C?
Does a 1095-C increase tax return?
For most people, the 1095-C doesn't affect how they file taxes. It only comes into play if an employee enrolls on a health insurance marketplace with a tax credit. It's used to determine if coverage offered met the minimum requirements. If not, the employer might have to pay a penalty.
What happens if you don't report 1095-A?
You can use Form 1095-A to reconcile any advance premium tax credits you received during the year with the amount of credits you were eligible to receive. If you fail to file a tax return reconciling those payments, you will not be eligible for premium tax subsidies in the next year.
Does a 1095-C mean I owe money?
Much like the Form W-2 is used to determine whether or not you owe taxes, the IRS will use the information reported from your Form 1095-C to determine whether you (or your employer) may have to pay a fine for failing to comply with the Affordable Care Act.
How can I avoid paying back my premium tax credit?
Report any changes in your income during the year to the Marketplace, so your credit can be adjusted and you can avoid any significant repayments at the end of the year.
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.
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.
Why do I owe taxes for health insurance?
Owe taxes if you used more of the premium tax credit than you qualified for in 2024. You'll have to report the excess amount on your 2024 tax return by filing Form 8962, Premium Tax Credit (PDF, 115 KB). Find instructions for Form 8962 (PDF, 348 KB).
Do I need my 1095-C to file taxes in 2024?
For calendar year 2024, Forms 1094-C and 1095-C are required to be filed by February 28, 2025, or March 31, 2025, if filing electronically.
Is a 1095-C tax deductible?
Any health insurance policy you yourself paid premiums for can be a deductible medical expense if you itemize. If your employer paid those premiums you cannot deduct them.
Does the IRS still require proof of health insurance?
Health care coverage documents
You are not required to send the IRS information forms or other proof of health care coverage when filing your tax return. However, it's a good idea to keep these records on hand. This documentation includes: Form 1095 information forms.
How does the marketplace tax credit affect my taxes?
If you use more advance payments of the tax credit than you qualify for based on your final yearly income, you must repay the difference when you file your federal income tax return. If you use less premium tax credit than you qualify for, you'll get the difference as a refundable credit when you file your taxes.
What disqualifies you from the premium tax credit?
For tax years other than 2021 and 2022, if your household income on your tax return is more than 400 percent of the federal poverty line for your family size, you are not allowed a premium tax credit and will have to repay all of the advance credit payments made on behalf of you and your tax family members.
Do I need to 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.
Why did I receive a 1095-C?
Why did I get a Form 1095-C? If you worked an average of 30 or more hours per week in the tax year (or maintained ACA qualifying status for any portion of the tax year) for an employer with 50 or more full-time equivalent employees, you should receive a 1095-C.
What happens if 1095-C is wrong?
If correcting information on a Form 1095-C that was previously filed with the IRS, file a fully completed Form 1095-C including the correct information and enter an “X” in the “CORRECTED” checkbox. File a Form 1094-C (do not mark the “CORRECTED” checkbox on Form 1094-C) with corrected Form(s) 1095-C.
Is there a penalty for not filing 1095-C?
Failure to File Penalty
In 2024, the IRS may assess a penalty of $310 per return to organizations that submit 1095-C forms late, and after Aug. 1, 2024. If the employer neglects their filing obligations altogether, the penalty increases to $630, per return.
Where do I enter 1095-C in TurboTax?
You do not have to enter a 1095-C in TurboTax. You will answer the question in the Health Insurance section that you had health insurance all year and keep a copy of the 1095-C with your tax records. The insurance company will provide the IRS with the needed information.
How to calculate premium tax credit?
The amount of the Premium Tax Credit is generally equal to the premium for the second lowest cost silver plan available through the Marketplace that applies to the members of your coverage family, minus a certain percentage of your household income.