2016 marks the year where Americans are required to report health insurance coverage on their tax returns as a result of healthcare Reform and the Affordable Care Act (ACA). Beginning in 2016 for the 2015 tax year, some employers will be required to submit Form 1094-C to the IRS to show that they offered health insurance to their employees. These employers will also be required to provide Form 1095-C to their employees to show that the employee was offered and declined health coverage, or that the employee has health insurance coverage that meets the criteria for minimum essential coverage.
For employees, the information from this new Form 1095-C is needed for filing their personal tax return for 2015. If you had qualified healthcare coverage through your employer then all you will need to do is check a box on your 2015 tax return. Taxpayers who do not have health insurance coverage must pay a penalty when they file their tax return.
For the self-preparer, tax preparation software like Turbo Tax or H&R Block will walk you through the steps. For more complicated situations you should contact a tax accountant. The SBA (Small Business Administration) offers some good online tools and webinars. Here are a few online resources to help you learn more about ACA and the new Forms:
Written By: Christina Ide, CCP, SPHR. Christina is the Director of Human Resources at North Coast Electric and has her SPHR, Senior Professional in Human Resources Certification, through HRCI.