Top Show Updated for Tax Year 2022 • October 20, 2022 12:24 PM OVERVIEW Form 1095-B is a tax form that reports the type of health insurance coverage you have, any dependents covered by your insurance policy, and the period of coverage for the prior year. This form is used to verify on your tax return that you and your dependents have at least minimum qualifying health insurance coverage. Key Takeaways • Since tax year 2015, health insurance providers and employers with fewer than 50 full time employees have been required to send out 1095-B forms to
individuals with health insurance coverage. • Form 1095-B identifies the person whose name is on the health insurance policy, the employer (if the coverage is employer-sponsored), the insurance company, and the people in the household who are covered by the insurance. • Taxpayers can use Form 1095-B as proof that they have the minimum health insurance benefits that are required by the
Affordable Care Act, also known as Obamacare. • If you receive health insurance through an employer with more than 50 full time employees, you may receive Form 1095-C, rather than Form 1095-B. Affordable Care Act Form 1095-BUnder the Affordable Care Act, also known as Obamacare, taxpayers are required to have health insurance coverage. For tax year prior to 2019, those who didn't have coverage, or a waiver, had to pay a penalty when they filed their tax returns. Those who have health insurance that meets the standards of the law may receive Form 1095-B directly from their health care insurer and from employers who have fewer than 50 full-time employees (small businesses). Minimum essential coverageYou may receive a copy of Form 1095-B if your insurance provides what the Affordable Care Act calls "minimum essential coverage." This is the minimum level of benefits your insurance must provide for you under the Act. The following types of insurance provide minimum essential coverage:
Your insurer can also tell you whether your plan provides minimum coverage. TurboTax Tip: Prior to tax year 2019, those who didn't have minimum essential coverage (or a waiver) had to pay a penalty when they filed their tax returns. This is no longer the case. Information on the 1095-BForm 1095-B provides information about your health coverage. The form has four parts:
Purpose of the formHaving a 1095-B in hand is proof that you had the type of coverage required by the Affordable Care Act. For tax years prior to 2019, the tax penalty for not having coverage -- which is referred to as the "individual shared responsibility payment"—is based in part on how long you or members of your household were uninsured. Gaps in coverage of three months or less are exempt from the penalty. If you were uninsured for part of the year, the check boxes in Part IV will help you calculate the penalty that applies, if any. Beginning in 2019, there is no longer a penalty for not having minimum essential coverage. Receiving the formsInsurance providers have been required to send out 1095-B forms since the 2015 tax year. Some people covered by employer-sponsored insurance might receive a copy of a similar form, the 1095-C, rather than the 1095-B. This form provides substantially the same information to taxpayers as the 1095-B but it is generated by large employers who have 50 or more full time employees. Depending on how their employers' coverage is set up, some taxpayers may even receive both tax forms. Remember, with TurboTax, we'll ask you simple questions about your life and help you fill out all the right tax forms. With TurboTax you can be confident your taxes are done right, from simple to complex tax returns, no matter what your situation. All you need to know is yourselfAnswer simple questions about your life and TurboTax Free Edition will take care of the rest. For simple tax
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The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business. |