Under the Tax Cuts and Jobs Act, passed December 22, 2017, the amount of the individual shared responsibility payment is reduced to zero for months beginning after December 31, 2018.
Beginning in tax year 2019, Form 1040 will not have the “full-year health care coverage or exempt” box and Form 8965, Health Coverage Exemptions, will no longer be used. You need not make a shared responsibility payment or file Form 8965, Health Coverage Exemptions, with your tax return if you don’t have minimum essential coverage for part or all of 2019.
You may receive multiple information forms that you can use to complete your tax return and will keep with your tax records.
The information forms are:
- Form 1095-A, Health Insurance Marketplace Statement
- Form 1095-B, Health Coverage
- Form 1095-C, Employer-Provided Health Insurance Offer and Coverage
If you or your family received advance payments of the premium tax credit through the Health Insurance Marketplace, you must complete Form 8962, Premium Tax Credit with your return. You will receive Form 1095-A, Health Insurance Marketplace Statement, which provides you with information about your health care coverage. You should wait to file your income tax return until you receive that form. Use the information from Form 1095-A to complete Form 8962 to reconcile advance payments of the premium tax credit or – if you are eligible – to claim the premium tax credit on your tax return. Filing your return without reconciling your advance payments will delay your refund and may affect future advance credit payments.
Health insurance providers - for example, health insurance companies - will send Form 1095-B to individuals they cover, with information about who was covered and when. Certain employers will send Form 1095-C to certain employees, with information about what coverage the employer offered.
The IRS has posted a set of questions and answers about the Forms 1095-B and 1095-C. The questions and answers explain who should expect to receive the forms, how they can be used, and how to file with or without the forms.
You should not attach any of these forms to your tax return.
Documentation individuals can gather in advance
You are not required to send the IRS information forms or other proof of health care coverage when filing your tax return. However, it’s a good idea to keep these records on hand to verify coverage. This documentation includes:
- Form 1095 information forms
- Insurance cards
- Explanation of benefits
- Statements from your insurer
- W-2 or payroll statements reflecting health insurance deductions
- Records of advance payments of the premium tax credit
- Other statements indicating that you, or a member of your family, had health care coverage
If you are expecting to receive a Form 1095-A, Health Insurance Marketplace Statement, you should wait to file your income tax return until you receive that form.
You might not receive a Form 1095-B or Form 1095-C from your coverage providers or employer by the time you are ready to file your tax return. You can prepare and file your returns using other information about your health insurance. You should not attach any of these forms to your tax return.
While your employer may be able to assist you in verifying your coverage, most employers are not required to provide documentation specific to your health care coverage.
If you or your family had coverage through a Marketplace, the Marketplace will send you information about the coverage on Form 1095-A. The form will show coverage details such as the effective date, amount of the premium, and the advance payments of the premium tax credit or subsidy. If you or your family received advance payments of the premium tax credit, you will use the information from Form 1095-A to complete Form 8962, Premium Tax Credit (PTC) in order to reconcile advance credit payments on your federal tax return or to claim the premium tax credit.
You may receive more than one Form 1095-A if anyone in your household switched plans or reported life changes - such as getting married or having a baby - after their coverage began, or if you had more than one policy covering people in the same household. You will get a Form 1095-A, even if you only had Marketplace coverage for part of the year.
If you receive a Form 1095-A from the Marketplace, you should check to make sure the information matches your records. This includes items like the start and end dates of your coverage and the number of people in your household.
You might receive a corrected or voided Form 1095-A because the information on the initial form was incorrect or incomplete. For more information on what you need to do with a corrected or voided Form 1095-A, see Corrected, Incorrect or Voided Forms 1095-A. This information can help you assess whether you should file an amended tax return.
Health insurance providers (for example, health insurance companies) send this form to individuals they cover, with information about who was covered and when.
You can use Form 1095-B for information on whether you and your family members had health coverage that satisfies the individual shared responsibility provision.
Certain employers send this form to certain employees, with information about what coverage the employer offered. Employers that offer health coverage referred to as “self-insured coverage” send this form to individuals they cover, with information about who was covered and when.
You can use Form 1095-C to help determine your eligibility for the premium tax credit. In addition, you can use Form 1095-C for information on whether you or any family members enrolled in certain kinds of coverage offered by your employer - sometimes referred to as “self-insured coverage."
Free File and e-filing help simplify tax time
All taxpayers who are reporting coverage, claiming a health coverage exemption, making an individual shared responsibility payment, or claiming the premium tax credit should consider filing your tax return electronically. Filing a tax return electronically is the simplest way to file a complete and accurate tax return as it guides you through the process and does all the math for you.