1095-B Reporting
E-file 1095B Reporting
What is 1095-B Reporting?
Form 1095-B is an IRS tax form used to report that an individual has received minimum essential coverage (MEC) health insurance. This form is typically issued by health insurance providers and certain employers. The form provides details about the type of coverage, the months coverage was in effect, and the individuals covered under the plan. While taxpayers do not typically need to submit Form 1095-B with their tax return, it's essential to retain a copy as proof of coverage and to ensure accuracy when reporting health coverage on one's tax return.
General Information About Forms 1094-B and 1095-B
Forms 1094-B and 1095-B are documents that are used to report health coverage in the United States as required by the Affordable Care Act (ACA).
Form 1095-B provides information about individuals who are covered by minimum essential health coverage. Insurance providers or certain smaller employers typically issue this form to covered individuals. While individuals should retain their 1095-B forms for records and tax purposes, they generally don't need to submit them with their tax returns.
Form 1094-B, on the other hand, is a transmittal form that accompanies the 1095-B forms when sent to the IRS. It acts as a cover sheet summarizing the aggregate data provided in theattached 1095-B forms.
What information is included in Form 1095-B reporting?
Form 1095-B provides detailed information about an individual's health coverage to ensure compliance with the ACA. Line by line, the form requires the following:
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Part I deals with the responsible individual, which includes the recipient's name, SSN or TIN, and address.
- Lines 1-7 collect personal details about the recipient.
- Line 8 collects the code that describes the health coverage.
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Part II gathers information about certain Employer-Sponsored Coverage.
- Lines 8-15 provide details about the employer (if applicable), including name, EIN, and contact information.
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Part III captures details of the issuer or provider of the insurance.
- Lines 16-22 provide details about the insurance company or government program that provided coverage, including their name, EIN, and contact details.
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Part IV lists covered individuals, with Lines 16-22 designated for entering names, SSNs or TINs, and birth dates.
- Columns (d) and (e) in Part IV are particularly important as these columns indicate the months the listed individual was covered.
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Who needs to submit a Form 1095-B reporting?
Form 1095-B is primarily issued by insurance carriers, government health programs, and certain small employers to report individuals' coverage under the ACA. Specifically, it's the responsibility of insurance companies that provide MEC, including small businesses that offer self-insured coverage and government programs like Medicaid and CHIP, to complete and send Form 1095-B.
Recipients of the form are individuals who had health coverage through these providers during the tax year. While individuals receive this ACA form, they don't need to file it with their taxes but should keep it for their records as evidence of coverage.
What is the deadline for Form 1095-B?
Form 1095-B deadlines are twofold, catering to recipients and the Internal Revenue Service (IRS). Insurance providers and certain other entities are required to furnish Form 1095-B to the covered individuals by March 2nd of the year following the coverage year.
Additionally, the issuers of the coverage must file these forms, along with the transmittal Form 1094-B, with the IRS by February 28th if paper filing* and by March 31st if electronically filing. It's essential for entities to adhere to these deadlines to avoid potential penalties.
*Please note that entities that are required to file more than 10 Forms 1095-B must submit an electronic filing.
What are the filing methods for Form 1095-B reporting?
Form 1095-B can be filed using two primary methods: electronic filing and paper filing. Entities issuing Form 1095-B are encouraged to file electronically, especially if they have to file 10 or more of these forms. Electronic filing is conducted through the IRS's ACA Information Returns (AIR) system.
If entities are filing fewer than 10 forms and choose not to use the electronic method, they can submit paper copies of Form 1095-B to the IRS.
Alongside the individual 1095-B forms, issuers must also send the transmittal Form 1094-B, which serves as a cover sheet summarizing the accompanying 1095-B forms. Regardless of the method chosen, it's vital to adhere to the respective deadlines to ensure compliance and avoid penalties.
E-filing Form 1095-B
Form 1095-B e-filing refers to the electronic submission of Form 1095-B to the IRS using approved digital methods. The IRS AIR system facilitates the e-filing process for these forms.
E-filing is particularly advantageous for entities that have to file a large number of forms, as it streamlines the submission process, reduces the potential for errors, and offers faster confirmation of receipt.
It's worth noting that entities submitting 10 or more Form 1095-Bs are required to e-file, emphasizing the IRS's preference for this efficient and secure method.
Paper Filing Form 1095-B
1095-B paper filing pertains to the traditional method of submitting Form 1095-B to the IRS using physical, printed forms which must be sent to the appropriate address. The ACA mailing address is dependent upon where the filer's business address is located.
While e-filing is encouraged for efficiency and accuracy, entities that issue fewer than 10 Form 1095-Bs in a year have the option to paper file. When using this method, the issuer must also include the transmittal Form 1094-B, which acts as a cover sheet summarizing the accompanying 1095-B forms.
Paper filing requires careful attention to detail to avoid errors, and entities should be mindful of the distinct submission deadlines compared to e-filing to ensure timely compliance.
Penalties
Entities that fail to furnish Form 1095-B or fail to file it with the IRS can receive hefty penalties. For 2024, the penalty is $310 for each form not provided to the recipient or not filed with the IRS. However, penalties could be higher for intentional disregard of the requirement to furnish forms.
Conclusion
In conclusion, Form 1095-B reporting plays a pivotal role in the landscape of the U.S. healthcare system, ensuring compliance with the ACA. With potentially hefty penalties in play for missteps, it's imperative to stay informed about the form's intricacies and adhere strictly to the stipulated guidelines.
Whether opting for electronic or paper filing methods, timely and accurate submission is a non-negotiable aspect of responsible financial and healthcare management.
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