ACA Form 1095 C Codes

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ACA Form 1095 C CodeSheet for Line 14 and Line 16

Updated on January 20, 2021 - 10:30am by, TaxBandits

Choosing codes to report on lines 14, 15, and 16 of 1095 C might be a tedious process for anyone. But, when you look closely, it is pretty much simple. To give a clear vision on 1095 C codes, TaxBandits has provided descriptions of each code and how to choose the codes.

Continue to read on and get clarified on which 1095 C codes you should enter on Lines 14, 15, and 16.

The following are the topics covered under this article:

1. How to choose Codes on Line 14 and Line 16?

Basically, Form 1095 C is used by employers to report the health benefits that they provide their employees. A copy of the form should be furnished to the employees as well.

If you are an employer filing 1095 C, you should be aware of codes to enter on lines 14, 15, and 16. These three lines are a crucial part of the form.

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

  • Line 14

    Mention the health coverage plan offered to your employee. You have to choose the codes based on health coverage.

  • Line 15

    Mention the amount contributed by the employee for the provided health coverage plan.

  • Line 16

    Mention how you offer the health coverage plan to the employee.

2. Form 1095 C Line 14 - Offer of Coverage

Line 14 describes the health coverage plan that you offer to your employer, spouse, and other dependents. The IRS states 17 codes to enter on line 14 based on the plan offered. They are 1A, 1B, 1C, 1D, 1E, 1F, 1G, 1H, 1J, 1K, 1L, 1M, 1N, 1O, 1P, 1Q, and 1S. Until the tax year 2019, codes from 1A to 1K were in use. For the tax year 2020, new seven codes from 1L to 1S were added to mention Individual coverage HRA.

Here is the list of codes:

New ICHRA codes are explained in the below section.

3. Form 1095-C New ICHRA codes to enter on Line 14

From the tax year 2020, employers need to report the Individual coverage health reimbursement arrangement (ICHRA) offered to employees and their dependents. In addition to the existing codes, below are the new codes for line 14. Use the new ICHRA codes if you have offered Individual Coverage Health Reimbursement Arrangement. Which code you need to use in line 14 depends on who you have provided coverage along with the employee and how you calculated affordability.

New ICHRA Codes - 2020

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

Here you need to mention the type of coverage you offered to the employee in the previous year and how you meet your shared provisions of Section 4980H. The code you enter provides the IRS information to administer your shared provisions.

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 also sign in to TaxBandits to e-file your IRS Form 1095 C.

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