Ahh, what a lovely morning in the land of ExpressIRSForms. The sun is shining, the birds are chirping, and it’s finally above freezing.
But, wait! What’s that? A commotion in Town Square! Hopefully, our helpful e-filing superhero Ace is on the way!
“But you only help out our employers!” interjected another angry citizen.
“Yeah and our insurance providers!” added another.
“But we’ve got questions too,” continued the original citizen, clearly the ringleader of the gathering. “Confusion is affecting us just as much as she’s affecting the people who give us our insurance!”
So Ace sat down to answer the questions of the taxpayers who wouldn’t be giving out 1095-B and 1095-C forms, but who would be receiving them. In fact, it sounded a lot like our previous Q&A blog on individual ACA information forms:
“I have to send the ACA forms I get to the IRS with my W-2, don’t I?” asks the ringleader.
“No, not at all,” Ace replies. “Your employer or insurance provider sends a copy to the IRS when they send a copy to you, so the IRS doesn’t need your copy. You’ll just use it to confirm your health insurance compliance on your W-2 -- or 1099 for some of you -- then keep it for your records.”
“So I have to fill out even more information on my tax returns now?”
“Technically yes, but it won’t be as much as you’re probably thinking. All the IRS requires you do is check a new box that states you received health insurance coverage for the full year, so technically you don’t even need your 1095-B or 1095-C if you know you were covered for the full year. If you receive a 1095-A, or didn’t receive coverage for the full year, you can still go ahead and file your W-2 or 1099, but you can also use your ACA form to determine if you qualify for an exemption or have to make an individual shared responsibility payment.”
On and on they go, the ringleader of the angry mob asking questions and Ace patiently answering them. Until, finally, the crowd disperses and Confusion goes along with it.