2021 Form 1095-C Codes CheatSheet
for Line 14 and 16

Understanding Form 1095-C Codes for Line 14 and Line 16

Updated on November 23, 2021 - 10:30 am by, TaxBandits

Employers might feel overwhelmed in terms of understanding and completing lines 14-16 of Form 1095-C codes. If you report the incorrect codes on Form 1095-C, it leads employers to pay huge penalties.

To help employers avoid these complications, we created a helpful guide to understanding Line 14 & 16 Codes.

The following are the topics covered under this article:

1. Form 1095-C - An Overview

Form 1095-C is used by ALEs to report information on the health coverage offered to their employees during that calendar year.

If you are an employer, you must include the employees personal details and health coverage details on Line 14, 15, & 16 by using various codes.

Here’s what you need to report in these lines:

  • Line 14

    Report the type of health coverage plan offered to your employee

  • Line 15

    Report the amount of the employee required monthly contribution

  • Line 16

    Report the employees’ eligibility for health coverage and the coverage status for each month of the calendar year

2. Form 1095-C Line 14 - Offer of Coverage

On Line 14, employers should use the 1-Series code (1A-1U) that describes the type of health insurance coverage offered to an employee, spouse and dependents.

Form 1095-C

The code may vary for each employee based on the following scenarios:

  • Whether an individual was offered coverage
  • What type of coverage was offered
  • Which months that coverage was offered

If an employee is eligible for the health benefits in any month during the year, then line 14 should include a value for each month, even during months where an employee is not/no longer employed.

Here is the list of 1 Series Line 14 codes for Form 1095-C

a. 1095-C Codes to enter on Line 14 for meeting the Mandated ICHRA Reporting

Last year, the IRS mandated reporting of ICHRA Coverage and introduced new codes on line 14 for meeting the mandated ICHRA Reporting. They also added new lines (for entering employees age and ZIP Code) on Form 1095-C for indicating the method used to determine their ICHRA plan’s affordability.

An individual coverage health reimbursement arrangement (ICHRA) is a fairly new type of health reimbursement arrangement introduced in 2020, in which employers of any size can reimburse employees for some or all of the premiums that the employees pay for health insurance that they purchase on their own.

ICHRA health coverage details should be reported through Codes (1L - 1U) on Line 14.

b. IRS Adds New Codes on Line 14 of Form 1095-C for 2021 Tax Year

The IRS introduced new codes 1T and 1U to enhance the reporting of ICHRA Coverage.

Get Started with TaxBandits to file your Form 1095-C with the required Line 14 & 16 Codes.

TaxBandits, an IRS Authorized E-file Provider, enables you to file your 1095 Forms securely and accurately.

3. Form 1095-C Line 15: Employee Required Contribution

Form 1095-C

Employers must report the amount of the employee’s required monthly contribution on Line 15.

The amount listed on line 15 may not be reflective of the medical plan cost that the employee actually enrolled in. This amount should represent the cost of the lowest-cost, self-only coverage offered to that employee.

4. Form 1095-C Line 16 Codes - Section 4980H Safe Harbor Codes and Other Relief for ALE Members

Form 1095-C

Line 16 Codes are used to report information about the following information on Form 1095-C

  • Whether an individual was offered coverage
  • What type of coverage was offered
  • Which months that coverage was offered

Contact our sister product ACAwise now.

ACAwise, a full service solution provider, taking care of your ACA reporting. We will take care of generating codes and e-filing forms with the IRS and states and also employee copy distribution on your behalf.

Get started Now

5. Line 17 - ZIP Code (Location of Employer Determined Eligibility)

Form 1095-C

Last year, the IRS introduced Line 17 for meeting the ICHRA Coverage. Employers must enter the ZIP code of the employee offered ICHRA coverage on Line 17.

The Zip code entered depends on whether the affordability for the coverage was based on the primary residence of the employee, or the employee’s primary work location.

For more information on instructions, click here.

If you have any queries regarding filing your Form 1095-C, you can contact our support team at support@taxbandits.com. We can help you in choosing the right codes to be entered on your 1095 C.

You can get started with TaxBandits to e-file your IRS Form 1095-C.

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

Success Starts with TaxBandits

The Smart Business Owners Choice