- Individuals who receive minimum qualifying health insurance coverage are provided with Form 1095-B by their insurance company.
- Form 1095-B contains information such as the health insurance coverage, effective coverage dates, individuals covered, and the coverage provider, and it's used to confirm that the taxpayer had health insurance coverage.
- Form 1095-B is not returned to the IRS; instead, taxpayers should retain the form for their personal records.
- Insurance cards, explanation of benefits statements from your insurer, W-2, or payroll statements reflecting health insurance deductions can be used to fill out health care information on your tax form.
How Does Form 1095-B Work?
IRS Form 1095-B: Health Coverage is a form insurance carriers provide to insured individuals during tax season. Form 1095-B contains information such as the health insurance coverage, effective coverage dates, individuals covered, and the coverage provider. It’s used to confirm to the IRS that the taxpayer had health insurance coverage.
The Affordable Care Act (ACA) that passed in 2010 includes an Individual Shared Responsibility Provision, also known as the Individual Mandate, which fines individuals lacking insurance coverage.
You were once required, with some exceptions, to demonstrate health insurance coverage for each month of the previous year. Insurance providers, therefore, would issue Form 1095-B to confirm enrollment of minimum essential coverage through either an insurance provider or a self-insured employer.
In 2019, the Tax Cuts and Jobs Act eliminated the Individual Mandate penalty. Nevertheless, insurance carriers continue to provide Form 1095-B to taxpayers.
You don’t need to return Form 1095-B to the IRS. Instead, keep the form for your records and confirm your health care coverage to the IRS by checking a box on your tax return.
Who Uses Form 1095-B?
Health insurance carriers provide Form 1095-B to taxpayers who were enrolled in a minimum essential coverage health insurance plan through either a government program, insurance provider, or a self-insured employer. Medicare Part A is an example of a minimum essential coverage plan.
Types of Form 1095
Aside from form 1095-B, individuals who are insured through an insurance provider or self-insured employer may receive other types of Form 1095. Here are the three main 1095 forms:
|Form||What It’s Used For|
|Form 1095-A||Sent by marketplace providers to individuals enrolled in a qualified health plan via the health insurance marketplace|
|Form 1095-B||Sent by health insurance providers to individuals for whom they provide minimum essential coverage|
|Form 1095-C||Sent by health insurance providers to individuals provided health care from an employer who has 50 or more employees|
Health insurance marketplace carriers provide Form 1095-A to individuals covered under one of their plans. You can use this form to fill out Form 8962 for a Premium Tax Credit, which is a refundable tax credit that lowers your monthly premiums.
Health insurance carriers provide Form 1095-B to individuals they insure to confirm you received minimum essential coverage under the Affordable Care Act (ACA).
Form 1095-C is provided to taxpayers who work for an organization with 50 or more employees. It may be provided instead of or in addition to Form 1095-B.
Where To Get Form 1095-B
Your insurance provider will send you Form 1095-B if it applies to your situation. Not everyone will receive Form 1095-B. Many receive health insurance coverage through an employer, so they would instead receive Form 1095-C.
What To Do if You Don’t Receive Form 1095-B
You can file taxes even if you did not receive form 1095-B. Other documentation can be used instead of Form 1095-B to prepare your tax return.
Documents you can use in lieu of the form include insurance cards, explanation of benefits statements from your insurer, or W-2 or payroll statements reflecting health insurance deductions. You don’t need to return Form 1095-B to the IRS.
How To Fill Out and Read Form 1095-B
Form 1095-B is completed by your insurance provider. You do not need to fill it out yourself. The form will contain information about your insurance provider, the type of coverage you had, and the months in which you had this coverage.
You Don't Need To File Form 1095-B
You also need not return the form to the IRS, but you should retain the form for your personal records.
However, you should provide the information included on Form 1095-B, or acknowledge that you have received the form, on your federal tax return. You can do this by checking the appropriate box on your Form 1040 indicating how long you were covered throughout the tax year.
Frequently Asked Questions (FAQs)
What should I do if I lost my Form 1095-B?
You do not need to use Form 1095-B to file your tax returns. You may hold onto the form if you wish, but you don't need to track down another copy if you lose it.
What's the difference between Form 1095-A and Form 1095-B?
Form 1095-A covers individuals who receive coverage through the health insurance marketplace. It's used to reconcile any differences between the advance premium tax credit, which is an estimate, and the actual tax credit you're due based on your final income calculations. Form 1095-B covers minimum essential coverage, such as Medicare Part A and Medicaid.
Internal Revenue Service. “About Form 1095-B, Health Coverage.”
Internal Revenue Service. “Individual Shared Responsibility Provision.”
Internal Revenue Service. “Instructions for Forms 1094-B and 1095-B.”
Internal Revenue Service. “1095-A.”
Internal Revenue Service. “Premium Tax Credit (PTC).”
Internal Revenue Service. “2021 Form 1095-C.”
Internal Revenue Service. “Questions and Answers About Health Care Information Forms for Individuals.”
Internal Revenue Service. "About Form 1095-A, Health Insurance Marketplace Statement."