Your client may receive Form 1095-C if they had employer-provided health insurance coverage at any point in the year. This form isn't required to be filed with their tax return, but for tax year 2018 and prior, you can use it to help calculate any Shared Responsibility Payment your client owed under the Affordable Care Act. Since tax year 2019, the Shared Responsibility Payment has been reduced to $0, so Form 1095-C no longer affects your client's federal tax liability.
For current tax returns
No federal 1095-C entry is needed since the Shared Responsibility Payment, or health coverage penalty, has been reduced to $0.
For states with health coverage requirements, the 1095-C data doesn't have to be entered into the program - but you can use it to help determine whether your client had health coverage throughout the year. Click here for more information on entering minimum essential coverage for California returns.
For tax year 2018 and earlier returns
Forms 1095-B and 1095-C are issued to taxpayers for information purposes only and aren't required to be entered in the return.
- Part III input is provided to conveniently calculate the Individual Shared Responsibility Payment penalty if some or all of the household members don't have full-year coverage.
- This input can also be made in the "Minimum Essential Coverage not Indicated Elsewhere" section, on the Health Coverage, Exemptions, and Miscellaneous screen. Only one entry is required.
- If all members of the household were covered all year, you can just enter a 1 for entire household covered for all months. No additional input is required.
To enter Form 1095-C:
- On the left-side menu, select Credits.
- Click on Affordable Care Act Subsidy/Penalty (1095-A, B, C) to expand.
- Select Form 1095-C - Employer-Provided Health Insurance Offer & Coverage.
- Complete the table for each covered individual:
- First name, Last Name, and Social Security number are required
- Enter a 1 in (d) 1=covered all 12 months, or scroll to the right and enter a 1 in each month that the individual was covered.
- If your client received multiple 1095-C forms, select the plus sign at the top of the screen to add another form.