Federal 1095 Health Insurance Form and Your Tax Returns


So you’ve received your W2s, your interest and dividend 1099s, your mortgage interest statement and other tax documents. You made an appointment to see your tax preparer, and you’re eagerly anticipating the dollar amount of your tax refund.

“Did you get form 1095?”


“What form 1095?” You respond, mystified. “I have my health insurance form right here, see?”. “No, the one that you get under ACA (Obamacare). We need the information on your tax returns. You get that from your employer.”

So you call your employer, and HR gives you the run around.

“You can file without it”,

“We don’t do that”,

“We expect that this will be available in early March.”

Meanwhile, you’re planning to go on vacation to a nice sunny beach somewhere, and you really, really want to get your taxes filed so your refund can be waiting for you when you get back. Just in time to pay that credit card bill. You know, the one with the vacation charges on it.

Now what do you do? Well, it helps to understand what it is. Form 1095 is issued as a result of complying with ACA (Affordable Care Act, nicknamed Obamacare), which was enacted in 2010. Although it’s been around for a while, and were implemented in stages over past 2 years, 2016 is the first tax year it is being fully implemented. For some people, that means that you’ve heard about it, but haven’t really been affected by it.

It doesn’t help that there are 3 versions: 1095-A, 1095-B, 1095-C. If you got your health insurance via a health insurance marketplace, you should get a 1095-A. If you have minimum essential coverage, you get 1095-B. If your employer is an Applicable Large Employer, and they offered you coverage, you get 1095-C.

1095-A (Heading)

1095-B (Heading)

1095-C (Heading)


So the million dollar question is: Do I need this to file my tax return? And what about Trump’s executive order on January 20, 2017?

Let’s get one thing clear. The ACA is enacted law. The executive order isn’t. So yes, you do need the 1095. At least until the executive order becomes enacted law.

On February 15, 2017, the Internal Revenue Service published an article “Individual Shared Responsibility Provision” on their website, stating that, on the one hand:

“… Taxpayers should continue to file their tax returns as they normally would.”

On the other hand:

“… The IRS has decided to make changes that would continue to allow electronic and paper returns to be accepted for processing in instances where a taxpayer doesn’t indicate their coverage status.”

But, the IRS further states,

“… taxpayers may receive follow up questions and correspondence at a future date, after the filing process is completed.”

So, in essence, you can file your returns without the form 1095, but don’t be surprised if you get a notice from the IRS a few months later. If your return should have included a healthcare penalty that wasn’t calculated, you’ll be required to pay that back with penalties and interest.

Maybe you shouldn’t have ordered that second martini…


Posted by Terranova & Associates LLC

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