IRS Form 1095-C Instructions for 2022

Form 1095-C Line by Line Instructions - Explained

Updated on October 27, 2022 - 10:30 am by, TaxBandits

IRS Form 1095-C is used by Applicable Large Employers (ALEs) to report the health insurance coverage information provided to their full-time employees and employee’s dependents. For the tax year 2022, form 1095-C has been updated. And, employers should use the updated 1095-C form to file with the IRS this year.

To make 1095-C filing easy for you, we have given detailed instructions in this article.

Table of Content:

1. Part I (Employee) - Details about Employee

Part I of 1095-C comprises two columns to report employee and employer information. First, let’s see how to fill the employee details in Form 1095-C, Part I.

Form 1095-C Part 1
  • Line 1

    Enter the name of your employee (first name, initial, last name).

  • Line 2

    Enter the employee’s Social Security Number (SSN).

  • Line 3

    Enter the employee’s street address, including apartment number.

  • Line 4

    Enter the employee’s city or town.

  • Line 5

    Enter the employee’s state or province

  • Line 6

    Enter the employee’s country and ZIP or foreign postal code.

2. Part I (Employer) - Details about Applicable Large Employer (ALE)

In Part I of 1095-C, you need to enter Applicable Large Employer details from Line 7 to 13.

Form 1095-C Part 1
  • Line 7

    Enter the name of the employer.

  • Line 8

    Enter the Employer Identification Number (EIN).

  • Line 9

    Enter the employer’s street address, including room or suite number.

  • Line 10

    Enter the employer’s contact telephone number.

  • Line 11

    Enter the city or town.

  • Line 12

    Enter the employer’s state or province.

  • Line 13

    Enter the employer’s country and ZIP or foreign postal code.

3. Part II - Employer Offer of Coverage

In Part II, the employer should enter the health insurance coverage details offered to the employee.

Form 1095-C Part 2
  • Line 14 (Offer of Coverage)

    ACA Codes 1A-1U are used to describe the health insurance coverage offered to your employee.

  • Line 15 (Employee Required Contribution)

    Enter the Employee Required Contribution. This amount is a monthly cost to the employee for the lowest-cost self-only minimum essential coverage providing the minimum value that you offered your employee. This line should be filled only when the code on line 14 is 1B, 1C, 1D, 1E, 1J, 1K, 1L, 1M, 1N, 1O, 1P, or 1Q.

  • Line 16 (Section 4980H Safe Harbor and Other Relief)

    Enter the code related to Section 4980H Safe Harbor and Other Relief. There are 11 different codes to be entered on this line. Each code defines the type of coverage provided to the employee in the previous year and how the employer meets the employer shared provisions of Section 4980H. The code you enter provides the IRS information to administer the employer shared provisions.

    Learn more about Form 1095-C Codes

  • Line 17

    Enter the ZIP code that you used to calculate the employee’s affordability. Fill this line only when you have provided individual coverage HRA to the employee.

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4. Part III - Covered Individuals

This section should be completed by the employer if the employee is provided with self-insurance. The details of individuals, including any full-time employee and non-full-time employee, and any employee’s family members enrolled under employer’s health plan should be listed in this section. The details include name, SSN, and DOB. If they are covered for all 12 months, check the box “Covered all 12 months”. If the plan has covered only a few months, check the applicable boxes under Month of coverage.

Note: DOB should be entered only if SSN or other TIN is not available.

Form 1095-C Part 3
  • Line 18 - 30

    Based on the number of individuals covered under the health plan, fill these lines.

    • (a) Name of covered individual(s) - Enter the name of the individuals covered under the employer’s health plan.
    • (b) SSN or other TIN - Enter the SSN or other TIN of the individuals
    • (c) DOB - Enter the individual’s DOB if SSN or other TIN is not available.
    • (d) Covered all 12 months - If the health plan is provided for all 12 months, check this box.
    • (e) Months of coverage - If the health plan is provided only for a few months in a year, check the applicable boxes.

We hope the given 1095-C instructions will help to complete your tax return easily. If you would like to e-file Form 1095-C for the tax year 2022, you can sign up for TaxBandits at no cost. We are an IRS-certified e-file provider supporting the filing of various tax returns.

Get started with TaxBandits today and stay compliant with the IRS!

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