Form 1095-C : Employer-Provided Health Insurance Offer and Coverage

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Form 1095-C -What is Form 1095-C?

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

For the calendar year 2020, the IRS has updated Form 1095-C with few changes. It includes the introduction of new codes and lines for reporting Individual Coverage HRAs. Keep in mind that this new form should be used only for 2020. If you want to report for the last 2 years, use the existing form. In this article, we have explained the recent changes to IRS Form 1095-C.

Table of Content:

1. What is Form 1095-C?

1095-C, Employer-Provided Health Insurance Offer and Coverage, is an IRS form used by Applicable Large Employers (ALEs) to report information about employee’s health coverage. Businesses with 50 or more full-time employees are termed as ALEs. Form 1095 C should be filed with the IRS, and copies should be furnished to employees.

The information stated in the 1095 C copies would be helpful for employees to determine their
credit eligibility.

2. Who needs to file Form 1095-C?

Employers who are operating businesses with 50 or more full-time employees must file IRS Form 1095 C. ALE members should report health coverage information provided to employees who have been working for one or more months in the calendar year. For each employee, they should report health coverage information for 12 months of the calendar year.

Note: ALE members should file Form 1095 C even if the employee worked for a few months. They should furnish health coverage information in IRS form 1095 C for the months they have worked.

Learn more on ACA Reporting Requirements.

3. What information must be reported on Form 1095-C?

To file Form 1095 C, the following information is required:

  • Employees’ name, SSN, and address
  • Employer’s name, EIN, and address
  • Information about the health care coverage provided to the employee
  • Employee Required Contribution, if any
  • Information about covered individuals if the employer has offered self-insured coverage

Click here to learn more about IRS Form 1095 C line by line instructions

4. What are the other forms needed to be filed with 1095-C?

The IRS does not require any forms to be filed with the 1095 C form. However, if you are filing more than one 1095-C, you are expected to file Form 1094 C. To understand better, we have explained the
scenarios below.

Assume that you want to file Form 1095 C for 500 employees. But, you are filing for 100 employees first and then filing for the remaining employees. As you are filing forms separately, you are required to attach 1094 C forms for each portion.

Let us consider an ALE member filing form 1095 C for employees from two different operating divisions. The first division operates with 200 employees and the second one with 250 employees. As per the IRS, you should file two 1094 C forms for each operating division.

While filing multiple 1094 C forms, any one of them should be mentioned as the Authoritative Transmittal on line 19, Part I. On the Authoritative Transmittal, you must report aggregate data of all full-time employees for whom you have filed 1095 C.

5. What is the deadline for Form 1095-C?

As an Applicable Large Employer, you must file Form 1095 C on or before February 28 if you are paper filing. In the case of e-filing, 1095 C should be filed with the IRS by March 31. For the calendar year 2020, the due date is extended for providing form copies to employees. The Form 1095-C due date for furnishing recipient copy is changed from January 31, 2021 to March 2, 2021.

Due Date For Form 1095 C

Type of Tax Filing Due Date
Paper filing Form 1095 C for 2020 March 01, 2021
E-filing Form 1095 C for 2020 March 31, 2021
If the due date falls on any federal holiday, then the next business day will be the filing due date.

*If you need an extra 30-day extended time to file your 1095 C, you can file Form 8809, Application for Extension of Time To File Information Returns. To know more about time extension, click here.

6. What are the recent IRS updates on Form 1095-C for 2020?

The IRS has released a revised Form 1095 C introducing new codes for reporting Individual Coverage HRAs and new lines for entering the related information. The changes to IRS Form 1095 C are explained below:

New codes to be entered on Line 14

Seven new codes are introduced by the IRS to enter on Line 14 of Form 1095 C. These codes range from 1L through 1S. It refers to the coverage that the employer offered to employees and his/her dependents.

Let's see the description of each code below

  • 1L - Individual coverage health reimbursement arrangement (HRA) offered to you only with affordability determined by using the employee's primary residence location ZIP code.
  • 1M - Individual coverage HRA offered to you and dependent(s) (not spouse) with affordability determined by using the employee's primary residence location ZIP code.
  • 1N - Individual coverage HRA offered to you, spouse, and dependent(s) with affordability determined by using the employee's primary residence location ZIP code.
  • 1O - Individual coverage HRA offered to you only using the employee's primary employment site ZIP code affordability safe harbor.
  • 1P - Individual coverage HRA offered to you and dependent(s) (not spouse) using the employee's primary employment site ZIP code affordability safe harbor.
  • 1Q - Individual coverage HRA offered to you, spouse, and dependent(s) using the employee's primary employment site ZIP code affordability safe harbor.
  • 1R - Individual coverage HRA that is NOT affordable offered to you; employee and spouse or dependent(s); or employee, spouse, and dependents.
  • 1S - Individual coverage HRA offered to an individual who was not a full-time employee.

Introduction of Line 17 of 1095 C

Line 17 is introduced for the tax year 2020 to report the ZIP code used by the employer to calculate affordability if the employee is provided with an individual coverage HRA. If code 1L, 1M, or 1N was used on line 14, it denotes the employee's primary residence location. If code 1O, 1P, or 1Q was used on line 14, it denotes the employee's primary work location.

7. Form 1095-C filing methods

The IRS supports both paper filing and e-filing of Form 1095-C. However, if you are filing more than 250 forms, you must file electronically.

Paper filing of Form 1095 C

If you wish to paper file your 1095 C, you must mail your copies to the following postal address:

If your principal business, office or agency, or legal residence, in the case of an individual, is located in: Postal Address
Alabama, Arizona, Arkansas, Connecticut, Delaware, Florida, Georgia, Kentucky, Louisiana, Maine, Massachusetts, Mississippi, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, Texas, Vermont, Virginia, West Virginia Department of the Treasury,
Internal Revenue Service Center,
Austin, TX 73301.
Alaska, California, Colorado, District of Columbia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Maryland, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, North Dakota, Oklahoma, Oregon, South Carolina, South Dakota, Tennessee, Utah, Washington, Wisconsin, Wyoming Department of the Treasury,
Internal Revenue Service Center,
P.O. Box 219256,
Kansas City,
MO 64121-9256.

Note: If your legal residence or principal place of business or principal office or agency is outside the United States, send your 1095 C copies to the address below:

Map Icon
Department of the Treasury,
Internal Revenue Service Center,
Austin, TX 73301.

E-filing of Form 1095 C

In comparison with paper filing, 1095 C e-filing is the easiest way to get it done accurately and securely. It saves time and money, and you can also track the status of your return after you transmit to the IRS.

List of advantages of e-filing Form 1095.

  • Easy and straightforward
  • Accurate & error-free
  • Better tracking of the return status

Advantages of E-filing 1095 C with TaxBandits

TaxBandits is an IRS-certified e-file provider that simplifies your 1095 C e-filing. Just enter your information and amounts to be reported and e-file with the IRS in a few minutes. Explore the benefits of e-filing 1095 C with TaxBandits below.

  • Cost-effective e-filing
  • Support for both single filing and bulk filings
  • Inbuilt error checks
  • Provides Instant return status via email
  • API integration available
  • Ability to view and download submitted forms at anytime
  • Data Security and Multi-Factor Authentication measures

Get started with TaxBandits today and e-file IRS Form 1095 C!

Form 1095 C should be furnished to employees on or before March 2, 2021.

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