IRS Form 1095-B vs 1095-C - Explained
Updated on November 13, 2024 - 03:00 pm by, TaxBandits
The most challenging part of reporting health coverage information is identifying the appropriate form to file
with the IRS.
Forms 1095-B and 1095-C look very similar because the Form and its instructions are both related to
healthcare coverage.
To help employers choose between Form 1095-B/C, here are answers to a few of the most commonly asked questions.
Table of Content:
1. What is Form 1095-B?
Form 1095-B, Health Coverage is a tax form used by small employers or insurance coverage providers to report the health coverage offered to employees or individuals. The form must be filed with the IRS and copies must be distributed to the employees / Individuals.
Who must file Form 1095-B?
- Employers that offer employer-sponsored self-insured health coverage to non-employees who enroll in the coverage may use Form 1095-B Part III, to report coverage for those individuals and other family members.
- Small employers that aren't subject to the ESRP (employer shared responsibility provisions) sponsoring self-insured group health plans will use Forms 1094-B and 1095-B to report information about covered individuals.
- Health insurance issuers and carriers must file Form 1095-B for most health insurance coverage, including individual market coverage and insured coverage sponsored by employers.
When to file Form 1095-B?
- Form 1095-B Copies must be furnished to the employees /individuals on or before March 03, 2025.
- For the 2024 tax year, Form 1095-B and 1094-B must be filed with the IRS by March 03, 2025, if filing electronically (February 28, 2025, if filing paper forms).
Click here to learn more about ACA Form 1095-B.
2. What is Form 1095-C?
Form 1095-C, Employer-Provided Health Insurance Offer and Coverage is a tax form used by ALEs (employers with 50 or more full-time employees (including full-time equivalents) who are subject to the ESRP to report the health coverage offered to the employees.
The Form must be filed with the IRS and distributed to employees.
Who must file Form 1095-C?
- An ALE Member that sponsors a fully insured plan must file Form 1095-C for each of its full-time employee must report the information required under section 6056.
- Also, an ALE Member that offers health coverage through a self-insured health plan must report information about enrollment in the coverage on Form 1095-C, Part III, for any employee who is enrolled in coverage (and any enrolled family members) which is required under section 6055.
When is the deadline to file Form 1095-C?
- ACA Form 1095-C Copies must be furnished to the employees on or before March 03, 2025.
- For the 2024 tax year, Form 1095-C and 1094-C must be filed with the IRS by March 31, 2025, if filing electronically (February 28, 2025, if filing on paper).
Click here to learn more about IRS Form 1095-C.
3. Form 1095-B vs 1095-C: What is the Difference?
Form 1095-B is primarily filed by health coverage providers and small employers with less than 50 full-time
equivalent employees.
Whereas Form 1095-C is filed by Applicable Large Employers (ALEs), i.e., employers with 50 or more full-time
equivalent employees.
4. Choose TaxBandits to E-File Form 1095-B/C
Get Started with TaxBandits, an IRS-authorized e-file provider to e-file your Form 1095-B and e-file your Form 1095-C securely and accurately. We are a SOC2 certified provider that follows highly encrypted protocol to safeguard
your data.
Explore the benefits of e-filing 1095-B/C with TaxBandits below.
- Our bulk upload template helps you to import all your ACA Form 1095-B/C data at once.
- Our audit check feature helps you to identify basic errors and file error-free returns.
- We will email you the return status.
- We perform USPS address validations before sending the copies to the employees.
- We distribute employee copies via postal mail or online portal access
- Our Software will generate transmittal Form 1094-C.
- We also support filing of ACA Forms with the State that mandates ACA Reporting.
