ACA 1095 Reporting Requirements for 2024 & 2023
ACA Reporting Requirements for 2024 TaxYear
Updated on November 13, 2024 - 03:00 pm by, TaxBandits
The Affordable Care Act(ACA) mandates that every U.S citizen gets healthcare coverage if they are employed within the country. To ensure that, the IRS defines two different sections under ACA - Section 6055 and Section 6056.
Read on to learn about what Sections 6055 and 6056 mean.
Table of Contents:
- ACA Reporting Requirements under Section 6055
- ACA Reporting Requirements under Section 6056
- State ACA Reporting Requirements for the 2024 Tax Year
- What are the changes in 2024 ACA Reporting?
- Information Required to Complete ACA Forms
- Penalties for Failing to meet ACA Reporting for the 2023 Tax Year
- How to Determine ACA Affordability?
- 2023 Deadlines for Reporting Form 1095-B and Form 1095-C
- Choose TaxBandits to Complete 2024 ACA Reporting?
1. ACA Reporting Requirements under Section 6055
The Affordable Care Act included Section 6055 under the Internal Revenue Code to ensure certain things regarding health plans provided to the individuals. This ensures that every provider of Minimum Essential Coverage (MEC) to individuals reports the coverage information to the IRS using Form 1095-B and Form 1094-B. The IRS will have this information to administer the individual shared responsibility provisions.
The provider may include the following:
- Health insurance issuers or carriers
- Plan sponsors of self-insured group health plan coverage, and
- The executive department or agency of a governmental unit that provides coverage under a government-sponsored program.
The provider should complete the IRS Form 1095-B for every individual offered with the MEC and submit it to the IRS. And a copy of this form should be furnished to the individual.
Form 1095 B - Information return to be filed with the IRS reporting health coverage information of the individuals. Also, it includes the information of the covered individuals.
Form 1094 B - Transmittal form for 1095 B.
2. ACA Reporting Requirements under Section 6056
The Affordable Care Act included Section 6056 under the Internal Revenue Code. This section ensures that ALEs under the employer shared responsibility to file 1095-C and 1094-C forms with the IRS.The ALE member should report healthcare coverage information provided to the employees and their dependents to the IRS using Form 1095-C and Form 1094-C. The IRS will use them to administer the employer shared responsibility provisions.
Form 1095 C - Information return to be filed with the IRS reporting health coverage information of the employees. It also included the information of dependents, if any.
Form 1094 C - Transmittal form for 1095 C.
3. State ACA Reporting Requirements for the 2024 Tax Year
Besides the federal ACA Reporting requirements, employers and healthcare providers must also comply with the state-level ACA reporting requirements as well.
Currently, there are 5 states that mandate state-level ACA reporting:
All these states, except Massachusetts, accept the federal ACA Forms. For Massachusetts, employers and healthcare providers must file an MA 1099-HC Form. Also, the deadlines for these states may vary from
each other.
4. What are the changes in 2024 ACA Reporting?
For the tax year 2024, there are no changes implemented in ACA codes & ACA Forms. Basically, ACA reporting can be done using two forms. The providers who offer health coverage to individuals and employers with less than 50 employees should use 1095-B and 1094-B. ALEs who provide healthcare coverage to their employees and dependents should use 1095-C and 1094-C.
Notably, there are a few other updates to the ICHRA affordability and ACA penalty rates for the 2024 tax year.
Click here, to know more about IRS Form 1095-C Changes.
5. Information Required to Complete ACA Forms
To complete ACA forms, you should have the following information.
Information required for completing 1095-B
The form has 4 parts to be completed.
-
Part I - Responsible Individual
- Name of responsible individual–First name, middle name, last name
- Social security number (SSN) or other TIN
- Date of birth (if SSN or other TIN is not available)
- Street address (including apartment no.)
- City or town
- State or province
- Country and ZIP or foreign postal code
- Code for identifying Origin of the Health Coverage
-
Part II - Information About Certain Employer-Sponsored Coverage
- Employer name
- Employer identification number (EIN)
- Street address (including room or suite no.)
- City or town
- State or province
- Country and ZIP or foreign postal code
-
Part III - Issuer or Other Coverage Provider
- Name
- Employer identification number (EIN)
- Contact telephone number
- Street address (including room or suite no.)
- City or town
- State or province
- Country and ZIP or foreign postal code
-
Part IV - Covered Individuals (Enter the information for each covered individual)
- Name of covered individual(s) First name, middle initial, last name
- SSN or other TIN
- DOB (if SSN or other TIN is not available)
- Covered all 12 months
- Months of coverage
Information required for completing 1095-C
The form has 3 parts to be completed.
-
Part I - Employee
- Name of responsible individual–First name, middle name, last name
- Social security number (SSN)
- Street address (including apartment no.)
- City or town
- State or province
- Country and ZIP or foreign postal code Applicable Large Employer Member (Employer)
- Name of employer 8 Employer identification number (EIN)
- Street address (including room or suite no.)
- Contact telephone number
- City or town
- State or province
- Country and ZIP or foreign postal code
-
Part II - Employee Offer of Coverage
- Employee’s Age on January 1
- Plan Start Month (enter 2-digit number)
- Offer of Coverage (enter required code)
- Employee Required Contribution
- Section 4980H Safe Harbor and Other Relief (enter code, if applicable)
- ZIP Code
-
Part III - Covered Individuals
(If Employer provided self-insured coverage, check the box and enter the information for each individual enrolled in coverage, including the employee.)
- Name of covered individual(s) First name, middle initial, last name
- SSN or other TIN
- DOB (if SSN or other TIN is not available)
- Covered all 12 months
- Months of coverage
6. Penalties for Failing to meet ACA Reporting for the 2024 Tax Year
The employers and healthcare providers who fail to complete their ACA reporting accurately for the 2024 tax year will be subjected to a penalty of $330/return.
Apart from this, the employers may also be subjected to penalties under Section 4980H (a) and
Section 4980H (b).
- The penalty rate under Section 4980H (a) for the 2024 tax year is $2,970
- The penalty rate under Section 4980H(b) for the 2024 tax year is $4,460
7. How to Determine ACA Affordability?
The employers who offer ICHRA coverage might need to be aware of the affordability percentage declared by the IRS for the 2024 tax year in order to determine the affordability.
For the 2024 tax year, the affordability percentage is 8.39%.
8. 2024 Deadlines for Reporting Form 1095-B and Form 1095-C
The due dates for reporting 1095-B and 1095-C ACA forms are given below.
ACA Forms 2025 deadline
| Form Type | Paper filing | E-filing | Employee Copy Distribution |
|---|---|---|---|
| Form 1095-B | February 28, 2025 | March 31, 2025 | March 03, 2025 |
| Form 1095-C | February 28, 2025 | March 31, 2025 | March 03, 2025 |
ACA Forms state filing deadline - 2024
| State | Recepient Copy Deadline | E-Filing Deadline |
|---|---|---|
| New Jersey | March 01, 2024 | April 01, 2025 |
| District of Columbia | March 01, 2024 | April 30, 2025 |
| California | January 31, 2024 | April 01, 2025 |
| Massachusetts | January 31, 2024 | January 31, 2025 |
| Rhode Island | March 01, 2024 | April 01, 2025 |
| Connecticut | Yet to be released | Yet to be released |
| Hawaii | Yet to be released | Yet to be released |
| Maryland | Yet to be released | Yet to be released |
| Minnesota | Yet to be released | Yet to be released |
| Vermont | Yet to be released | Yet to be released |
| Washington | Yet to be released | Yet to be released |
Click here to know more about aca state filing requirements.
9. Choose TaxBandits to Complete 2024 ACA Reporting?
TaxBandits is an IRS-certified e-file provider for various IRS tax forms, including 1095 forms, 1095-B, 1095-C, 1094-B, and 1094-C. We have offered e-filing services for 70,000+ customers.
Our application is built with user-friendly features to make your ACA reporting easy for the 2024 tax year and prior years (2023, 2022 & 2021). We have updated our application in accordance with the latest IRS updates. You can begin to
e-file ACA reporting forms as we are heading towards the year-end tax filing season.
Get started with TaxBandits today and be compliant with the ACA Reporting Requirements!
If you have any questions regarding ACA reporting, please contact our support team at support@taxbandits.com.
