IRS Form 1095 FAQ
- What is a Form 1095-C?
- What is a Form 1095-B?
- Why did I get a Form 1095?
- Why did I get more than one Form 1095?
- When will I get my Form 1095?
- What information is reported on the Form 1095-C?
- Will the Form 1095 impact my taxes?
- Can I file my taxes before I receive my Form 1095-B and/or 1095-C?
- Will my dependents receive separate documents to report their coverage under my plan?
- What is the difference between a 1095-A, 1095-B, and 1095-C?
- I received health coverage through my State of Alaska employment. Is this qualifying healthcare coverage?
- What if I have questions?
By no later than March 2, 2017, State of Alaska employees eligible for health benefits will receive a Form 1095-C and in some cases a Form 1095-B. These forms contain information about your healthcare coverage and whether your dependents were covered. It is important to keep these forms for your records.
The Affordable Care Act (ACA) includes both an individual mandate and an employer mandate. Under the individual shared responsibility provision of the ACA, individuals must indicate their enrolled dependents, as well as themselves, have had a full year of qualifying healthcare coverage (called minimum essential coverage), qualify for an exemption, or pay a penalty when filing their income taxes. The employer mandate requires that large employers like the State of Alaska, offer affordable healthcare coverage that provides minimum value to most of their full-time equivalent employees or pay a penalty.
Form(s) 1095 are the mechanism that the Internal Revenue System (IRS) will use to determine if these mandates have been met. Below are some frequently asked questions regarding the new tax forms.
What is a Form 1095-C?
The State of Alaska is required to send IRS Form 1095-C to any employee who was offered coverage or enrolled in AlaskaCare or a union trust health insurance plan in 2016. If you were eligible for health benefits at any point in 2016 then you should receive a 1095-C which contains detailed information about the health care coverage you were provided or offered by the State of Alaska. It is important to keep the form for your records.
What is a Form 1095-B?
Form 1095-B is an IRS form that reports dependents covered by your union health trust. It also contains similar information to the 1095-C issued by the State of Alaska, including the type of coverage you and your dependents had and the dates you and your dependents were covered in 2016.
Why did I get a Form 1095?
You received the 1095 form(s) because you were eligible for or were offered health benefits in 2016. The IRS will use the information reported on the forms to determine whether a penalty tax is to be assessed. The forms will also be used to determine whether you are eligible for premium tax credits if you purchase coverage on the public insurance marketplace.
Why did I get more than one Form 1095?
A full-time employee who works for more than one employer must receive a separate Form 1095-C from each employer. If you had outside employment in 2016 you may receive a 1095-C from the State of Alaska and your other employer.
If you are covered under a union health trust, you will receive a Form 1095-C from the State of Alaska, and a Form 1095-B from your union health trust that reflects your covered dependents.
When will I get my Form 1095?
Your 1095 for the 2016 tax year will be mailed on or before March 2, 2017. If you believe you should have received a 1095-C but did not, please contact the Employee Call Center at (907) 465-3009 or EmployeeCallCenter@alaska.gov. If you are covered by a union health trust and believe you should have received a 1095-B but did not, please contact your health trust.
What information is reported on the Form 1095-C?
There are three parts to the form:
- Part 1 reports information about you and the State of Alaska.
- Part 2 reports information about the health benefit coverage offered, or provided each month, the affordability of the coverage offered, and the reason why you were or were not offered coverage.
- Part 3 identifies each covered individual, including spouses and dependents, and identifies the months of coverage. Part 3 may not include dependent information if you are covered by a union health trust. You should receive a separate 1095-B to report dependents covered under the trust.
Will the Form 1095 impact my taxes?
If you do not have health care coverage and do not qualify for an exemption, you may be subject to a fine when you file for your 2016 tax return. For more information on whether you may qualify for an exemption visit www.irs.gov.
Can I file my taxes before I receive my Form 1095-B and/or 1095-C?
It is not necessary to wait for forms 1095-B or 1095-C in order to file your taxes. For more questions and answers about health care information forms for individuals from the IRS click here.
Will my dependents receive separate documents to report their coverage under my plan?
The 1095 forms are only received by the employee, or the “responsible individual” as referred to by the IRS. A copy of the form is not provided to the dependents.
What is the difference between a 1095-A, 1095-B, and 1095-C?
These forms report very similar information and which form you receive will be dependent on who is responsible for issuing the 1095 form.
- You will receive a 1095-C if you received health care coverage through your employer
- You will receive a 1095-B if you were covered by other insurers such as a union health trust, self-funded retiree plan, or other small self- funded groups or employers
- You will receive a 1095-A if you were covered by a federal or state marketplace (also called an exchange)
I received health coverage through my State of Alaska employment. Is this qualifying healthcare coverage?
Yes, self-insured group health plans for employees, COBRA coverage and Retiree coverage qualify as Minimum Essential Coverage.