There are several new forms that have been issued by the IRS related to reporting requirements under the Affordable Care Act.
This includes Form 1095-A Health Insurance Marketplace Statement, Form 1095-B Health Coverage, Form 1095-C Employer-Provided Health Insurance Offer and Coverage, Form 8962 Premium Tax Credit (PTC) and Form 8965 Health Coverage Exemptions.
All reporting requirements were initially effective for coverage provided in 2014, but the IRS postponed the reporting requirements for Form 1095-B and Form 1095-C. Although the IRS has encouraged earlier compliance, Forms 1095-B and 1095-C are required to be filed beginning for coverage provided in 2015.
Form 1095-A will be issued by the State Marketplace where you have enrolled for insurance. Form 1095-B will be issued by insurance companies for plans with 49 or fewer full-time equivalent employees and will disclose who is covered by a policy and the dates of coverage. Form 1095-C is issued by employers with 50 or more full-time equivalent employees that are subject to the large employer mandate. Form 8965 will be issued by the State Marketplace for individuals who meet coverage exemptions.
Individual taxpayers who have enrolled in a State Marketplace will receive either a Form 1095-A or Form 8965 for coverage provided in 2014. The Form 1095-A provided by your State Marketplace will provide information regarding who was covered in your household, when coverage was provided to those individuals covered under the State Marketplace policy, the amount of premiums paid and any advanced premium tax credit you received (PTC).
Form 8965 will be issued by the State Marketplace for any individual who has met one of the market place granted exemptions for required coverage for any month during the coverage year. For any month that an individual is exempt from coverage they are not subject to a penalty for that month.
The forms you receive related to health care coverage you had in 2014 should be provided to your tax preparer so that they may complete and file Form 8962, to reconcile the Premium Tax Credit you received with the amount that you are entitled to, based on your completed tax return. If an individual did not have qualified coverage they will need to complete and file Form 8965 and potentially be subject to the individual shared responsibility payment.
Please contact our office to meet with a professional if you have questions regarding reporting and filing requirements for 2014 and beyond.
Request a complimentary accounting consultation or contact us at (616) 642-9467.