Form 1095-C – Employer-Provided Health Insurance Offer and Coverage

Form 1095-C is a crucial tax document that outlines the health insurance coverage offered by an employer to an individual. Its main purpose is to provide information to both the IRS and employees regarding the health coverage provided by the employer.

Key Features or Components:

The form includes details such as the months the individual was covered by employer-provided health insurance, the type of coverage offered, and the affordability of the coverage based on the employee’s income.

Relevant Filing or Compliance Requirements:

Employers subject to the Affordable Care Act (ACA) must provide Form 1095-C to employees. Individuals then use this information to complete their tax returns accurately, especially when claiming premium tax credits or indicating compliance with the individual mandate.

Penalties or Consequences for Non-Compliance:

Failure to provide Form 1095-C to employees can lead to penalties imposed by the IRS. Individuals who do not report their health coverage accurately may face challenges when filing their taxes or risk potential audit triggers.

Importance in Tax Resolution and Financial Compliance:

Form 1095-C plays a crucial role in ensuring compliance with the ACA and accurate reporting of health insurance coverage. It helps individuals verify their eligibility for tax credits and assists in maintaining financial records for tax purposes.