New IRS Form 1095 to be Distributed to Employees
In early 2017, employees will receive a new IRS form to assist with their income tax returns: the 1095-C, Employer Provided Insurance Offer and Coverage. Normally, this IRS information statement, which reports health coverage information from the preceding calendar year, will be furnished by Jan. 31. For the 2015 1095-C forms, however, the IRS announced that employers have until March 31 to furnish their employees with the forms.
- State of Florida health plan participants and GatorCare participants will receive their forms no later than March 31.
Importantly: Employees may file their income tax returns (IRS Form 1040, 1040A, or 1040EZ) prior to receiving the Form 1095-C. Unlike the Form W-2, the Form 1095-C is strictly informational and need not by attached to your income tax return. The Form 1095-C provides information about months that you (and spouse and dependents, if any) were enrolled in health care coverage. This information is important as it provides evidence that you maintained a minimum level of health care coverage and, therefore, are not subject to a potential penalty — referred to as the “individual mandate” penalty. Form 1095-C also provides you with information about the University of Florida’s offer of health care coverage to assist you in determining your eligibility for a premium tax credit if you purchased health care coverage on the Marketplace.
Generally, you will not need the Form 1095-C to prepare your 2015 individual income tax return. If you know that you (and your spouse/partner and dependents, if any) had coverage for the entire year, you can simply check the box showing 12 months of coverage on your 2015 individual income tax return. If you or your third-party tax return preparer need additional evidence to confirm your coverage, you may be able to obtain it by reviewing your health insurance card, your pay stubs, or your Form W-2. If you need additional information, please contact the UF Benefits office at (352) 392-2477 or firstname.lastname@example.org.
If you, your spouse, or your dependents had health coverage through the Marketplace and received a premium tax credit, or plan to claim the premium tax credit on your tax return, you may need information about UF’s offer of health care coverage in order to complete the IRS Form 8962, Premium Tax Credit (PTC), which is filed with your income tax return. For example, you may need to report whether you, your spouse, or any dependents were offered employer-sponsored health coverage that was affordable and provided minimum value in the months for which you, your spouse, or your dependents received or are claiming the premium tax credit. If this circumstance applies, you may be able to find this information in the health care open enrollment materials. If you need additional information, please contact the UF Benefits office at (352) 392-2477 or email@example.com.
The IRS guidance states that you have no obligation to amend your income tax return once your receive the Form 1095-C, even if the form indicates some discrepancies from what you reported on your income tax return. However, you should retain both the information your relied on to complete the return as well as the Form 1095-C itself in your tax records.