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What is Form 1095-B: Health Coverage – TurboTax Tax Tips & Videos

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Video How to get tax form for health insurance

Are you familiar with Form 1095-B? It’s a tax form that provides crucial information about your health insurance coverage, including the type of insurance you have, the dependents covered by your policy, and the coverage period for the previous year. This form is important because it verifies on your tax return that you and your dependents have met the minimum requirements for health insurance coverage.

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Reading: How to get tax form for health insurance

Key Takeaways

Let’s dive into some key takeaways about Form 1095-B:

  • Starting in 2015, health insurance providers and employers with less than 50 full-time employees are required to submit 1095-B forms to individuals who have health insurance coverage.
  • Form 1095-B includes important details such as the person named on the insurance policy, the employer (if coverage is employer-sponsored), the insurance company, and the individuals in your household covered by the insurance.
  • The Affordable Care Act, also known as Obamacare, requires individuals to have minimum health insurance benefits. Form 1095-B serves as proof that you meet these requirements.
  • Keep in mind that if you receive health insurance through an employer with more than 50 full-time employees, you may receive a Form 1095-C instead of a 1095-B.

Affordable Care Act and Form 1095-B

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The Affordable Care Act, or Obamacare, mandates that taxpayers have health insurance coverage. Prior to 2019, individuals without coverage or an exemption had to pay a penalty when filing their tax returns.

If you have health insurance that meets the standards of the law, you will receive Form 1095-B directly from your health care insurer. Additionally, small businesses with less than 50 full-time employees may also provide this form.

Minimum Essential Coverage

Form 1095-B is provided to individuals whose insurance offers “minimum essential coverage,” as defined by the Affordable Care Act. This means that your insurance must meet the minimum level of benefits required by law. Some examples of insurance plans that provide minimum essential coverage include:

  • Employer-sponsored plans, including retiree coverage and “COBRA” coverage for former employees.
  • Government health care plans like Medicare Part A, Medicare Advantage, Medicaid, the Children’s Health Insurance Program, military TRICARE, Veterans Health Benefits, and Peace Corps volunteer plans.
  • Health coverage purchased through the federal and state insurance marketplaces established under the Affordable Care Act, also known as the “Marketplace.”
  • Any individual health insurance policies you had before the Affordable Care Act took effect.

If you’re unsure whether your plan offers minimum coverage, your insurer can provide more information.

Important Tip: No Penalty for Lacking Minimum Essential Coverage

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One essential tip to remember is that as of tax year 2019, there is no longer a penalty for individuals who do not have minimum essential coverage or an exemption.

Understanding Form 1095-B Details

Form 1095-B consists of four parts that provide crucial information about your health coverage:

  • Part I: This section identifies the person whose name is on the insurance policy. In the case of an employer-sponsored plan, it is typically the employee’s name.
  • Part II: If your coverage is employer-sponsored, Part II identifies the employer.
  • Part III: This section identifies the insurance company providing the coverage.
  • Part IV: Here, you’ll find a list of the individuals in your household covered by the insurance. For each person, there is a box to check if they were covered for all 12 months of the year. If not, there is a box for each month to indicate the months of coverage.

Understanding Form 1095-B is crucial for accurately reporting your health insurance coverage on your tax return. Make sure to gather all necessary information and consult with a tax professional if needed.

Remember, Form 1095-B plays an important role in ensuring that you meet the requirements for health insurance coverage. Stay informed and make sure to keep track of this essential document.

Source: https://amajon.asia
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