Form 1095-B For 2024: Health Coverage

1. What is Form 1095-B?

Form 1095 B is a tax form used to report the individual’s Minimum Essential Coverage as per the Affordable Care Act (ACA). In this form, the information such as the healthcare coverage provider, the effective date of the coverage, covered months, and covered individuals. It should be filed with the IRS, and a copy should be issued to the individuals/recipients. Individuals who have coverage are not liable for the individual shared responsibility payment.

Recipients of the form could be employees working for organizations with less than 50 employees and self-employed individuals. Employees/individuals who got additional coverage from health insurers may also receive a copy of
Form 1095 B.

2. Form 1095-B Vs 1095-C: What's the Difference?

Form 1095-B is an IRS information return that healthcare providers or small businesses will file to report details about the health coverage they offer to individuals. Whereas, Form 1095-C is filed by Applicable Large Employers (ALE), i.e., employers with 50 or more full-time equivalent employees to report the health coverage information of their employees. Learn more in detail about Form 1095-B vs 1095-C.

3. Who needs to file Form 1095-B?

• Small employers/businesses with less than 50 employees who provided healthcare coverage to their employees should file Form 1095 B.
• Health insurers who provide individual market coverage and insured coverage sponsored by employers should also file this form.
• Small employers should ensure that all their employees are provided with Minimum Essential Care for every month in the calendar year.
• Coverage in More Than One Minimum Essential Coverage Plan or Program is required to report only one of the plans pr programs for that month.

While submitting 1095-B forms to the IRS, employers/insurers should use the transmittal form, 1094-B.

4. What is the Minimum Essential Coverage for Form 1095-B

Individual shared responsibility is the payment that needs to be made while filing your income tax return. This is the amount charged by the IRS if an individual/employee and his/her family members don’t have Minimum Essential Coverage (MEC). It will be calculated based on the number of months they were not provided with MEC.

Learn more about ACA Reporting Requirements.

5. Is E-filing mandated for filing Form 1095-B?

Yes, e-filing is mandated for Form 1095-B if the filer is filing 10 or more forms in a calendar year. This e-file mandate applies to all filers, including employers and health insurance providers. The IRS encourages e-filing even for those filing fewer than 10 forms, as it simplifies the submission process.

6. What information must be reported on 1095-B Form?

This form has 4 parts to be completed. To complete this form, you need the following information.

• 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 Provider

  • Employer 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 III - Issuer or Other Coverage Provider

  • Name
  • Employer identification number (EIN)
  • Contact telephone number
  • Street address (including room or suite no.)
  • 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

7. What are the additional forms needed to be filed with 1095-B?

Form 1094-B should be used as a transmittal form for the 1095-B forms sent to the IRS. It is more like a cover sheet for the 1095-Bs. In 1094-B, filers should mention a few information about the 1095-Bs that are being sent to the IRS.

Information required to complete 1094-B

• Name of the company
• EIN
• Phone number
• Address

Basically, 1094-B is to provide a summary of Form 1095-Bs that are being sent to the IRS.

8. How to file an extension to file Form 1095-B?

To file an extension for Form 1095-B, you must submit Form 8809, "Application for Extension of Time to File Information Returns." This form allows an automatic 30-day extension to file Forms 1095-B (and other information returns) with the IRS.

9. Are there any Penalties for Filing Form 1095-B Late?

Yes! If your organization fails to file 1095-B Forms on time, it will be subjected to a penalty starting from $330/return.

Not just for late filing, the IRS may also impose penalties for certain other reasons. Learn more information about
Form 1095-B penalties.

If your organization needs more time to file Form 1095-B, you can file Form 8809 and get an automatic extension of up to 30 days.

10. What is the deadline for Form 1095-B?

Form 1095-B should be filed on or before the deadline to stay compliant with the IRS. Failure to file this form on time may lead to IRS ACA penalties and interest.

Refer to the below section to know the Form 1095-B due dates for 2024.

Form 1095-B Due Dates 2024:

If the 1095-B due date falls on any federal holiday, then the next business day will be the filing due date.

Learn More about Form 1095 B Due Date.

11. What are the Form 1095-B filing methods?

Generally, employers/insurers can file Form 1095-B by either paper or electronically. However, it is mandatory to
e-file aca forms if you are filing more than 10 forms. E-File Now

1095-B paper filing

If you want to paper file your 1095 B forms, you must mail them to the following postal address:

Note: If your legal residence or principal place of business or principal office or agency is outside the United States, send your 1095 B copies to the address below:

Department of the Treasury,
Internal Revenue Service Center,
Austin, TX 73301.

Form 1095-B e-filing

E-filing is the best option to file your 1095 B with the IRS. It has many advantages over paper filing. Even the IRS is encouraging everyone to e-file their returns since it is easy and accurate. Also, the IRS will process your returns a little faster when you e-file 1095-B Forms.

12. What are the advantages of e-filing Form 1099-B with TaxBandits?

E-filing your Form 1095-B with TaxBandits is simple and straightforward. With just a few easy steps, you can
e-file 1095-B in minutes.

• Step 1: Create a free TaxBandits account or sign in if you already have an account

• Step 2: Choose Form 1095-B

• Step 3: Enter Form Information

• Step 4: Review Form Information

• Step 5: Transmit it to the IRS and State

If you opt for postal mail or online access, TaxBandits will distribute your recipient copies on your behalf. We support both Federal and State filing, enabling you to stay compliant with both Federal and State agencies. Our platform facilitates ACA bulk filing through Excel templates, We validate your data against IRS business rules to ensure accurate 1095 filing and more.

E-file your Form 1095-B or the 2024 tax year in advance through scheduled filing to avoid the last-minute rush.