Glossary

Form 1095-B – Health Coverage

Form 1095-B reports health coverage information to the IRS, crucial under the ACA. It details coverage type, months covered, and provider. Insurance providers send it by January 31st. Individuals use it for tax return (Form 1040) to claim tax credits. Non-compliance leads to IRS penalties. Essential for tax compliance and accurate reporting of health coverage.

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Form 1095-B – Health Coverage: A Comprehensive Guide

Form 1095-B is a tax form used to report health coverage information to the IRS and individuals during tax season. It is an essential document required under the Affordable Care Act (ACA) to show proof of minimum essential coverage.

Key Features

Form 1095-B includes details of the type of coverage individuals have, the months they were covered, and information about the insurance provider. It helps ensure compliance with the ACA and assists in verifying eligibility for premium tax credits.

Filing Requirements

Insurance providers or employers with self-insured plans must send Form 1095-B to individuals by January 31 each year. Recipients use this information to complete their tax return, specifically Form 1040, to confirm their health coverage status.

Penalties for Non-Compliance

Failing to file or provide accurate Form 1095-B can result in penalties imposed by the IRS. These penalties vary based on the violation severity and can significantly impact both individuals and organizations.

Importance in Tax Resolution

Form 1095-B plays a crucial role in tax resolution by ensuring individuals maintain proper health coverage and claim any available tax credits. It helps the IRS validate the accuracy of reported health coverage information and promote overall financial compliance.

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