Understandably, Line 14 on Form 1095-C is causing hesitation for many filers. Just look at it:
What, so now you’ve got to come up with a code for each month the recipient was covered? Close: the IRS has already come up with the code (1A through 1I), you just need to enter the appropriate one for the recipient listed either in the “All 12 Months” box (if the code’s the same all year) or in each applicable month.
Offer of Coverage
So just what are you reporting with these codes? Well, Form 1095-C Line 14 indicates to the IRS what coverage was offered to the person for whom you’re filing the Form 1095-C. The code you use will tell the IRS if the coverage you offered met the ACA-required minimum essential coverage (MEC) and minimum value (MV) regulations, as well as if coverage was offered to the spouse and dependent(s) of the employee. Additionally, there’s a code to use in the event coverage wasn’t offered or if the employee only worked part-time.
ACA Line 14 Code Series 1
- 1A. Qualifying Offer: MEC providing MV offered to FTE; employee premium less than or equal to the 9.5% mainland single federal poverty line; MEC offered to spouse and dependent(s)
- 1B: MEC providing MV offered to FTE only
- 1C: MEC providing MV offered to FTE; MEC offered to dependent(s)
- 1D: MEC providing MV offered to FTE; MEC offered to spouse
- 1E: MEC providing MV offered to FTE; MEC offered to dependent(s) and spouse
- 1F: MEC not providing MV offered to FTE, dependent(s), or spouse
- 1G: Offer of coverage made to non-FTE who enrolled in self-insured coverage
- 1H: No offer of coverage made
- 1I: Offer made (or lack thereof) falls under Qualifying Offer Transition Relief for 2015
Looking for something a little less hands on? Check out our full-service e-filing program for Forms 1094 and 1095, ExpressACAForms!