Form 1095-B relates to employers with fewer than 50 full-time employees and provides details about an employee’s insurance coverage, including who in their family was covered. This form is sent out by the Insurance Company rather than the employer. In cases where the employer is self-insured, the employer rather than the insurance company will send out the 1095-B and it may appear in a combined form with Form 1095-C.
Although the Shared Responsibility Payment (or penalty) has been eliminated by the Tax Cuts and Jobs Act starting with the tax year 2019, employees will continue to receive Form 1095-B with information about their coverage in 2020.
For the tax years when the Shared Responsibility was in in effect (2014-2018), Form 1095-B was primarily used to verify minimum essential coverage or to make the entries for Coverage Exemptions on Form 8965.
A Taxpayer is not required to have a 1095-B to complete the tax return.
1095-B provides information about the taxpayer's health coverage. The form has four parts:
- Part I identifies the person whose name is on the insurance policy. For an employer-sponsored plan, for example, this would be the name of the employee.
- Part II identifies the employer, if the coverage is employer-sponsored.
- Part III identifies the insurance company providing the coverage.
- Part IV lists each individual in the taxpayer's household who is covered by the insurance.
For each name, there is a box that is marked if the individual was covered by insurance for all 12 months of the year.
If the individual wasn't covered for the full year, the months the person was covered will be marked.
Note: This is a guide to Form 1099-B - Insurance Coverage. This is not intended as tax advice.