Form 1095-B: Your Guide to Health Coverage Reporting
Health coverage is an important aspect of your tax filing, and one of the key forms that helps report this coverage is Form 1095-B. This form is issued by health insurance providers to confirm that you were covered under a health plan that meets the requirements of the Affordable Care Act (ACA). Whether you get your health insurance through your employer, a government program, or directly from an insurer, Form 1095-B provides the necessary details for reporting your coverage when filing your taxes.
If you’re wondering what Form 1095-B is, when to expect it, and how to use it for your taxes, this guide will break it all down.
What is Form 1095-B?
Form 1095-B, Health Coverage, is used to report to the IRS information about individuals who have qualifying health coverage (also known as Minimum Essential Coverage). This form is typically issued by insurers, employers, or government programs like Medicaid or Medicare. It shows the months during which you and your family members were covered by health insurance that meets ACA standards.
Form 1095-B serves as proof of your health coverage for the year, which is important because the IRS requires you to report that you were covered to avoid penalties under the individual mandate (although the penalty for not having coverage was eliminated for most states starting in 2019, a few states still have their own mandates).
Who Needs Form 1095-B?
You’ll receive Form 1095-B if you had health insurance coverage for any part of the year through one of the following sources:
- Private Health Insurance: If you had insurance through a private insurer that is not your employer.
- Government Programs: If you received coverage through a government program such as Medicaid, Medicare, or the Children’s Health Insurance Program (CHIP).
- Employer-Sponsored Coverage: In certain cases, small employers that don’t have a self-insured health plan may send this form instead of Form 1095-C (employers with 50 or more employees usually provide Form 1095-C).
Essentially, if the entity that provided your coverage is responsible for reporting it to the IRS, they will send you Form 1095-B.
What Information is Included on Form 1095-B?
Form 1095-B provides key details about your health coverage for the year. Here’s a breakdown of the information typically included on the form:
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Part I – Responsible Individual Information:
- This part identifies you (the person responsible for the health coverage) by name, address, and taxpayer identification number (usually your Social Security Number).
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Part II – Information About Your Health Coverage:
- This section lists the insurance provider or the entity responsible for the coverage. It includes the name, address, and Employer Identification Number (EIN) of the insurer or program.
- The type of coverage is also listed here (e.g., private insurance, Medicaid, etc.).
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Part III – Covered Individuals:
- This section lists the names of all individuals covered by the plan, including you and your dependents. For each person, the months of coverage will be listed, showing which months they were covered under the plan.
- This ensures that your family members’ coverage is accurately reported for the year.
How Do You Use Form 1095-B for Your Taxes?
Form 1095-B is important for tax filing, as it serves as proof that you had health coverage and meets the ACA’s minimum essential coverage requirement. Here’s how to use it:
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Confirm Health Coverage:
The primary purpose of Form 1095-B is to confirm that you had the required health coverage for the entire year. The IRS requires you to report your coverage status on your tax return. The form serves as proof of that coverage. -
File Your Tax Return (Form 1040):
When filing your tax return, you’ll need to indicate that you had health coverage, which helps avoid the ACA penalty for not having insurance (though the penalty is no longer federally enforced as of 2019 for most states).If you had coverage for every month of the year, you’ll check the box on Form 1040 or 1040-SR indicating you were covered. Form 1095-B provides the details to support this claim, though you do not need to submit the form with your return unless the IRS requests it.
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Health Coverage for Dependents:
If you’re claiming dependents on your tax return, Form 1095-B will show the months your dependents were covered. Make sure to accurately report their coverage when filing your return. -
State Health Insurance Mandates:
While the federal government no longer imposes a penalty for not having health insurance, certain states (like California, Massachusetts, and New Jersey) have their own individual mandates. If you live in one of these states, you’ll need to provide the same proof of coverage to meet your state’s tax requirements. Form 1095-B will help you comply with these state mandates.
What to Do If You Don’t Receive Form 1095-B
If you believe you should have received Form 1095-B but didn’t, there are steps you can take:
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Check with Your Insurance Provider:
Contact your insurer or the program that provided your coverage (e.g., Medicaid or Medicare) to inquire about when and how they plan to send Form 1095-B. They may send it electronically or by mail. -
Verify Your Coverage:
If you didn’t receive Form 1095-B and had health coverage through your employer, check whether your employer will issue Form 1095-C instead, especially if you work for a large company. -
Get Proof of Coverage:
If the form is missing, make sure you keep other records proving your coverage, such as health insurance cards, statements from your insurer, or even emails confirming your enrollment. These records can help support your claim if the IRS asks for additional documentation.
Common Issues with Form 1095-B
- Missing or Incorrect Information: If the form contains incorrect information, such as incorrect dates of coverage, or the wrong name, you should contact the insurer or program administrator immediately to request a correction.
- Late or Missing Forms: If you don’t receive Form 1095-B by mid-February, contact the issuer. Be aware that the form could be delayed, but you should not delay filing your taxes due to a missing form. You can still file your tax return, but you might need to provide additional information if requested by the IRS.
Key Takeaways
- Form 1095-B is your proof of health coverage and confirms you meet the ACA’s minimum essential coverage requirement.
- You will receive the form from your insurance provider, government program, or employer if they provided health coverage.
- The form helps you report your health coverage status when filing your taxes, especially for state mandates or federal reporting.
- You do not need to submit Form 1095-B with your tax return unless requested by the IRS, but you must keep it for your records.
Understanding Form 1095-B and how it fits into your tax filing is essential to ensure you’re in compliance with health coverage requirements. If you have questions or need help, consult a tax professional who can guide you through the process.
