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What to Do With Tax Form 1095-C

Alicia Adamczyk Feb 09, 2019. 7 comments

The Affordable Care Act requires applicable large employers—or an organization that employs at least 50 workers full time—to send Form 1095-C, “Employer-Provided Health Insurance Offer and Coverage,” to employees. If you’ve worked full time for a company for at least one month of the year, you’ll receive the form in addition to your W2 come tax time (you likely already have it).

Though the ACA’s tax penalty for not having health insurance is, essentially, no longer in effect, you still need to report proof that you had insurance, at least for tax year 2018.

That’s because the 2017 Tax Cuts and Jobs Act reduced the penalty for not having insurance to $0 starting in 2019. You’re still on the hook this year, according to Consumer Reports.

Employers have until March 4 to send you the form. If you had employer health insurance coverage for the entirety of 2018, you don’t really need to worry about it; it’s more for reference.

You might need the reference code on the form if you didn’t participate in insurance offered by your employer and didn’t have other essential coverage, in which case you might owe the tax penalty for 2018 (the “2017 amount” is $695 per adult plus $347.50 per child under 18):

But if you purchased insurance through the marketplace, you need to wait to Form 1095-A to file your taxes.

And after you file taxes this year, you won’t have to worry about the form again.

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