What Is Form 1095-C? Definition, What to Do With It
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Employees do not need Form 1095-C to file their taxes.
Employers with 50 or more full-time employees must file Form 1095-C and send a copy to their employees.
Employers who don’t file Form 1095-C could face tax penalties.
What is a 1095-C?
Form 1095-C is a tax form sent from employers to employees that describes the health insurance that is available to them. This annual statement is required by law under the Affordable Care Act. Companies must send 1095-Cs to their workers if they have 50 or more full-time employees.
» Learn more: 2024 tax filing guide
What should I do with a 1095-C?
Employees who receive a 1095-C from their employer do not need to use it to file their taxes. In fact, the IRS recommends that individuals not wait to receive 1095-Cs to file their return.
Form 1095-C is an informational document, however, so the IRS recommends that you keep it with your other tax documents in case you need to verify that you were offered health insurance for that year.
Only employers that have 50 or more full-time workers, or full-time equivalents (multiple part-time employees whose total workload adds up to a full-time workload), must file Form 1095-C with the IRS. These employers are considered “applicable large employers” (ALEs).
When do you have to file Form 1095-C?
For the 2023 tax filing season, employers must send their employees Form 1095-C by March 1, 2024. Additionally, employers need to file Form 1095-C with the IRS by:
Feb. 28, 2024 (if filing on paper).
March 31, 2024 (if filing electronically).
» Check out the best tax filing software
What happens if I don’t report my Form 1095-C?
If you are an employee and you don’t include your 1095-C with your tax return, that’s fine. You do not need to file or report your Form 1095-C.
If you are an employer and do not provide an accurate 1095-C to the IRS you could face a penalty of $310 for each return, though the penalty cannot exceed $3,783,000. If you are an employer and fail to provide your employees with their 1095-C statements, you could also owe $310 per return.
Is Form 1095-C tax deductible?
For employees, Form 1095-C itself is not deductible, since it is just a statement about your health insurance. However, if you paid health insurance premiums on an employer-offered health insurance plan after your taxes were taken out, or you paid premiums on a policy you bought on your own, you may be eligible to deduct your insurance premiums. Your 1095-C may be helpful in determining if you can deduct your premiums.
» Check out the tax guide for small businesses
Is there an extension to file Form 1095-C?
If you’re an employer and you need more time to file your 1095-C with the IRS you can get an automatic 30-day extension by filling out Form 8809 on or before your tax return deadline. You can submit that form on paper or electronically.
Need help?
If you need assistance completing your taxes, it may be worth working with a tax professional. You can work with online tax preparers or find a tax professional near you.
