Form 1095-B

Form 1095-B Information

Your insurance provider or employer will likely send you a copy of Form 1095-B for your records. They also send a copy to the IRS, so you don’t need to attach it to your tax return. Form 1095-B is divided into four parts, which issue information about your coverage within the last year. Refer to this document for your personal finances or when the IRS sends you a notice with a discrepancy or bill charging missing taxes. Below, we’ll go over Form 1095-B instructions in detail.

Part I: Responsible Individual

The first portion of Form 1095-B includes basic information, such as your name, address, Social Security number or TIN, and date of birth. It will also have the letter identifying Origin of the Health Coverage. The letter-code is listed in the instructional portion of the form.

Part II: Information About Certain Employer-Sponsored Coverage

Part II identifies the name of your employer, their address, and their employer identification number (EIN). This verifies the insurance with you, the employer, and the IRS. Sometimes this portion is left blank. If you receive Form 1095-B without this section filled, you don’t need to fill in the information or return it to your reporter or coverage provider.

Part III: Issuer or Other Coverage Provider

If you get insurance through an insurance company, an employer providing self-insured coverage, or a federal agency sponsoring coverage like Medicaid or Medicare, their information will be provided here.

Part IV: Covered Individuals

The final portion of Form 1095-B reports the name, Social Security number or TIN, and other coverage information for each individual under the plan. It also identifies the months of coverage. There are 18 lines available for you to list each member on your insurance plan.

Do I Need to File Form 1095-B?

You do not need Form 1095-B to file your return. Your employer or provider gives you a copy of Form 1095-B for your records, so you can refer to it if there’s an issue with your coverage. The IRS also receives a copy of Form 1095-B, and you’ll only receive a letter if they notice inconsistencies.

Like all tax documents, you should keep a copy of Form 1095-B for your records for at least three years. The IRS may send you a notice or a bill if their information doesn’t match what you reported on your tax return. When this happens, you can refer to your copy and determine whether they’re correct. You can avoid mistakes and maximize your tax refund

Do I Get a Tax Credit with Form 1095-B?

You only receive a premium tax credit if you have Form 1095-A, Health Insurance Marketplace Statement. This form provides proof that you bought your health insurance through an online provider. If you switched providers during the previous year to or from a Marketplace plan, you may receive Form 1095-A and become eligible for a premium tax credit.

Will I Be Subject to a Penalty if I Don’t Have Coverage?

Before 2019, the Affordable Care Act required that all taxpayers have health insurance. If you didn’t have health insurance, the government could issue a hefty penalty. Additionally, if you didn’t have health coverage for over three consecutive months during the tax year, or you didn’t meet other exemption requirements, the federal government could issue a penalty called the “individual shared responsibility payment.” The cost of the penalty was the greater of the following two figures: either 2.5% of your household income or $695 per adult and $347.50 per child under the age of 18. Families are penalized no more than $2,085.

However, as of January 2019, you are no longer subject to a tax penalty at the federal level if you didn’t have health insurance coverage during the tax year. Keep in mind, though, that you could still face a penalty at the state level. If you live in Massachusetts, New Jersey, Vermont, California, Rhode Island, or Washington D.C., you could encounter a tax penalty if you didn’t have health coverage during the last tax year.

Am I Exempt From Health Insurance Coverage?

Under the Affordable Care Act, if you weren’t insured under a plan that provided minimum essential coverage, you would be penalized. However, there were some exceptions, including:

• You went without health insurance coverage for no more than three months.
• Your provider is specifically exempt from the Affordable Care Act.
• Your minimum required payment for annual premiums is more than 8% of your total household income.
• Your financial situation doesn’t allow you to obtain health insurance, due to some kind of financial hardship.

Depending on where you live, and if your state requires you to secure health coverage, these exemptions may still come into play. Check the relevant laws and regulations of the state you reside in to find out more.

Can Community Tax Help Me with Form 1095-B?

Our team of licensed tax professionals have helped tens of thousands of clients resolve over $960 million in tax liabilities. Whether you just switched insurance providers in the last year, or you need help paying a bill from the IRS, let our team create a strategy . Reach out to Community Tax today by visiting our website or calling us at (844) 328-5857 to get a free consultation and learn about our helpful.