Key Takeaways
- Reports minimum essential health coverage to IRS.
- Issued by insurers and small employers under 50.
- Verifies coverage months and covered individuals.
- Keep for records; not required with tax return.
What is Form 1095-B?
Form 1095-B is a tax document used to report information about individuals covered by minimum essential health coverage under the Affordable Care Act (ACA). It verifies your compliance with health insurance requirements by detailing coverage types, coverage months, and covered individuals to the IRS and taxpayers. This form helps ensure the IRS has accurate data to match with your tax filings, supporting the enforcement of health coverage rules.
Although the individual mandate penalty was reduced to zero starting in 2019, insurers and providers still issue Form 1095-B annually for record-keeping and verification.
Key Characteristics
Form 1095-B includes essential data to confirm your qualifying health coverage during the tax year. Key features include:
- Issuer: Health insurance carriers, small employers (under 50 employees), and government programs provide this form.
- Coverage Details: Lists covered individuals, coverage start and end months, and type of minimum essential coverage.
- Purpose: Confirms compliance with ACA requirements and supports IRS data-analytics processes.
- Distribution: Sent to individuals by January 31 and filed with the IRS by March 31 annually.
- Not for Large Employers: Employers with 50+ full-time employees use Form 1095-C instead.
How It Works
Your health insurance provider or issuer collects information on your coverage, including your name, Social Security number or birthdate, and coverage months. They then submit this data to the IRS using Form 1094-B as a transmittal along with individual 1095-B forms.
You will receive the form by mail or electronically, which you should keep for your records when filing taxes. While you don’t need to attach it to your return, the IRS uses it to verify your coverage and check for any discrepancies. If errors appear, contact the issuer for a corrected form to maintain accurate documentation.
Examples and Use Cases
Form 1095-B applies to various insurance scenarios beyond employer plans, including government and individual market coverage.
- Government Programs: Medicaid, CHIP, Medicare Part A, and TRICARE plans issue Form 1095-B to beneficiaries.
- Small Employers: Companies with fewer than 50 employees provide this form to covered workers instead of Form 1095-C.
- Individual Market: If you purchase insurance directly from an insurer outside the Marketplace, you receive Form 1095-B rather than 1095-A.
- Airlines: Employees of companies like Delta may receive Form 1095-C, but retirees or others with government benefits could get 1095-B.
Important Considerations
Keep Form 1095-B with your tax documents even if you no longer face penalties for lacking coverage, as it provides proof of insurance for the IRS. If you have multiple coverage sources, you might receive more than one form, so review all documents carefully.
Request replacements from Medicare or your insurer if you lose the form. Understanding your coverage documentation is helpful when managing your overall financial health, similar to how monitoring your healthcare stocks or evaluating low-cost index funds can guide your investment decisions.
Final Words
Form 1095-B verifies your minimum essential health coverage for the year and is mainly for your records, not filing. Keep the form to confirm coverage details and consult with a tax professional if you have questions about how it impacts your tax return.
Frequently Asked Questions
Form 1095-B is a tax form that reports information about individuals covered by minimum essential health coverage under the Affordable Care Act. It verifies to the IRS and taxpayers that they had qualifying health insurance during the tax year.
Form 1095-B is issued by health insurance providers, small employers with fewer than 50 full-time employees, and government programs like Medicaid, CHIP, and Medicare Part A. If you had coverage through these sources, you should receive this form.
You are not required to submit Form 1095-B with your tax return. However, you should keep it for your records, as the IRS uses it to verify your health coverage information when processing your taxes.
The form details the type of health coverage you had, the months you were covered during the year, and information about covered individuals such as names, addresses, and partial Social Security numbers or birthdates.
Individuals covered by small employer plans (under 50 employees), government programs, or individual market plans receive Form 1095-B. Large employers with 50 or more employees typically provide Form 1095-C instead.
If you find errors on your Form 1095-B, contact your health coverage provider to request a corrected form. Accurate information is important for IRS records and your tax filing.
Although the penalty for not having insurance was reduced to zero starting in 2019, insurers and providers continue to issue Form 1095-B. The IRS uses it to match coverage data with tax returns and for record-keeping purposes.
