Every employee of an employer that has 50 or more full-time employees who are eligible for insurance coverage should receive Form 1095-C, a statement of the Employer Provided Health Coverage. Eligible employees who decline to participate in their employer’s health plan will still receive a 1095-C which shows the coverage that they could have obtained. Form 1095-C identifies:
- The employee and the employer.
- Which months during the year the employee was eligible for coverage.
- The cost of the least expensive monthly premium the employee could have paid under the plan.
For tax years 2014 through 2018, the information contained on Form 1095-C allows the preparer to verify that the taxpayer and/or their dependents had minimum essential health care coverage for the purpose of calculating the shared responsibility payment on Form 8965.
The shared responsibility payment was suspended by the Tax Cuts and Jobs Act of 2017 starting with the tax year 2019. Employees will continue to receive Form 1095-C with information about their coverage, but after tax year 2018 there is nowhere to enter it, nor need to enter it, in the federal tax return.
If an employer with 50 or more full time employees does not offer its employees insurance, Form 1095-C will indicate that fact.
Note: Some states de-coupled from parts of the Tax Cut and Jobs Act, and elected to adopt a penalty for not having health insurance at the state level. Therefore, state returns may still include a requirement to include 1095-C information on the state return.
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