What is Form 1095?

During January, most of us will receive a Form 1095 that provides information about health insurance benefits that we received in 2015.  This is an IRS form that will be used to prepare your personal tax return. The form that you receive will vary based upon the type of health insurance you had.

1095-A is prepared by the Health Insurance Marketplace and provided to everyone that received a Premium Tax Credit (PTC) in 2015.  The PTC was based on estimated income and is recalculated based on final income reported on your return.  Taxpayers can receive an additional refund for PTC owing them or have to reimburse excess PTC that was used during the year.  (https://www.irs.gov/pub/irs-pdf/f1095a.pdf)

1095-B is used to report information about individuals who were enrolled in an individual health plan directly from an insurance company or a fully-insured employer group plan.  The health insurance company will prepare most 1095-B forms.  Some employers that provide self-insured group health plans will also use form 1095-B.  (https://www.irs.gov/pub/irs-prior/f1095b–2015.pdf)

Employers with 50 or more full-time employees use 1095-C to report offers of health coverage and enrollment for their employees. (https://www.irs.gov/pub/irs-prior/f1095c–2015.pdf)

All of the 1095s are to be delivered to the recipients by the end of January, similar to other year-end tax forms.

The annual fee for not having insurance in 2015 is $325 per adult and $162.50 per child (up to $975 for a family), or it’s 2% of your household income above the tax return filing threshold for your filing status – whichever is greater.  In 2016 the fee increases to $695 per adult / $347.50 per child ($2085 per family) and 2.5% of household income.

***Open Enrollment for individual health insurance continues through January 31, 2016***

by Chris McPike, Vice President
ComPro Insurance

402-488-5100 | www.comproins.com