IRS Form 1095 Information
As part of the Affordable Care Act (ACA), most individuals must have qualifying health insurance coverage, either through employer group coverage (like City of Mesa Medical Plans), the Marketplace, Medicare or some other source of qualifying health coverage. Individuals without this coverage may be penalized (taxed) for each full month the individual or his/her tax dependent is uninsured. The penalty if applicable, is calculated and applied in Individual Federal Income Tax Returns. Additionally, as part of the ACA employer mandate, City of Mesa is required to notify eligible employees/covered persons and the IRS of available and enrolled medical coverage. This notification is called the IRS Form 1095.
Notification of Coverage: IRS Form 1095
There are three versions of Form 1095 that you may receive from the City of Mesa or other coverage issuers. The City of Mesa will mail Form 1095-B or 1095-C as may apply to benefit eligible employees, retirees and COBRA participants (see summary below) – including information about applicable tax dependents covered under City medical plans. City of Mesa will mail Form 1095’s before the ACA mandated deadline of early March, 2017 – in a separate mailing/envelope marked “Important Benefit/Tax Information Enclosed”. Be sure to keep your address updated with the City and be on the lookout for your 1095 form. Do not lose or discard – you will need the information contained in the form, as described below. You can get an update on when the City has mailed 1095 forms by checking online in the News section of the City of Mesa Benefits Homepage.
| 1095 FORMS
||WHO YOU'LL RECEIVE IT FROM||WHAT TO DO WITH IT
|1095-A||Provided by the Health Insurance Marketplace if you were enrolled in a Marketplace plan during the tax year (does not apply to City of Mesa medical coverage).
||Use it to complete your US Individual Tax Return and other forms. The 1095-A information is your "proof of coverage" for the ACA Individual Mandate. You do not need to include the form itself with your tax return filing. Give a copy of the form to any of your tax dependents who need it for their own tax filing purposes.|
|1095-B||Provided by non-Marketplace health plan insurers if you were enrolled in a fully insured medical plan during the tax year (does not apply to City of Mesa) or if you were enrolled in an employer self-funded plan but were not employed by that employer in the tax year (could apply to City of Mesa retiree and COBRA participants).
||Use it to complete your US Individual Tax Return and other forms. The 1095-B information is your "proof of coverage" for the ACA Individual Mandate. You do not need to include the form itself with your tax return filing. Give a copy of the form to any of your tax dependents who need it for their own tax filing purposes.|
|1095-C||Provided by your employer if you were enrolled as an employee for at least one month of the year in an employer's self-funded medical plan or if you were a benefit eligible employee of a large employer, regardless of whether or not you were enrolled in a medical plan with that employer (applies to City of Mesa benefit eligible employees and retirees and COBRA participants where were employed with the City at some time in 2016).
||Use it to complete your US Individual Tax Return and other forms. If you were enrolled in an employer self-funded plan, the 1095-C information is your "proof of coverage" for the ACA Individual Mandate. You do not need to include the form itself with your tax return filing. Give a copy of the form to any of your tax dependents who need it for their own tax filing purposes.|
|Q: Do I have to wait until I receive my IRS Form 1095 to file my taxes?
|A: No, you don’t need to wait to receive your 1095 form. You can file your taxes whenever you have all your information together (and of course before the IRS deadline in April). If you already know that you and your eligible tax dependents had medical coverage throughout the entire 2016 calendar year from the City (or some other eligible source of coverage), you do NOT have to wait to receive an IRS Form 1095. You simply file your taxes just like you did last year, and confirm you and any applicable tax dependents were enrolled in a medical plan for the entire year (or the applicable partial year coverage, if that applies). Your pay check stubs (which you can access through ESS) are a good verification that you paid for single or family medical coverage throughout the year. If you have checked ESS but still have doubts about whether or not you or your dependents maintained medical coverage through the City of Mesa Medical Plan, you may verify coverage with the Employee Benefits office via email to firstname.lastname@example.org or phone 480-644-2299. Remember, the Form 1095 that you will be receiving from the City of Mesa before the end of March, 2017 is simply for your records…you do NOT need to forward the Form 1095 to the IRS to complete your taxes.
|Q: Why do I need an IRS 1095 form?|
|A: As part of the ACA employer mandate, large employers like the City of Mesa are required to notify benefit eligible employees, retirees and COBRA participants and the IRS, of available and enrolled medical coverage for calendar year 2016. This notification is called the IRS Form 1095. Information about covered dependents is also required on the 1095 form. The information on this 1095 document is you and your applicable dependents’ “proof of coverage” for the ACA Individual Mandate that requires most individuals to have qualifying health insurance coverage.|
|Q: Is there more than one type of IRS Form 1095?|
|A: There are several different versions of the 1095 form – A, B, or C – depending upon the issuer of the coverage that is reported. The City will provide B or C versions. Participants who were in active employment status with the City and eligible for and/or enrolled in medical coverage at any time during 2016 will receive 1095-C forms. COBRA and retiree participants who were not in active employment status at any time during 2016 but otherwise covered in a City medical plan during some or all of 2016 will receive 1095-B forms.|
|Q: Will I get more than one 1095 form?|
|A: You’ll only get one 1095 form from the City – either a B or a C version. However, you may also receive additional similar forms from other employers or coverage sources (either 1095-A, 1095-B or 1095-C forms), depending upon the type of issuer of the other medical coverage.|
|Q: Will my dependents/covered family members get their own 1095 form?|
|A: No, dependents/covered family members will not receive their own 1095 form from the City. If you qualify to receive a City generated 1095-B or 1095-C, you (the employee, retiree or COBRA participant) are the only one who will receive this form. Should you have family members covered under the City’s medical plan, their coverage information will also be included on your 1095 form. You are responsible for providing a copy of your form to any family members who need this information for their own tax filing purposes. The only exception to this is if you have a dependent who moved to their own “stand-alone” COBRA continuation coverage with the City. In this case that dependent will receive their own 1095 form to report on that stand-alone COBRA coverage period (at the COBRA address of record with the City).|
|Q: Where can I get more details about how to use the information on my 1095 form?|
|A: We recommend you consult your tax advisor, review material provided in online tax preparation services or contact the IRS for more details about how to use the information on your 1095 form(s) in your 2016 US individual tax return filing.|
|Q: Do I need to attach Forms 1095-A, 1095-B, or 1095-C to my 2016 federal tax return?|
|A: You are not required to include/attach the actual 1095 form(s) with your 2016 federal tax return filing – however, you are required to submit information that is provided on a 1095 form.|
|Q: What do I do if I misplaced or discarded my 1095 form from the City?
|A: 1095 mailing occurred the end of March 2017 - to your mailbox at your US Postal Service address of record. If you misplace or discard your form, contact Employee Benefits Administration at 480-644-2299 or send an email to email@example.com as soon as possible. Allow 7 to 10 business days for your replacement form to arrive.|
|Q: What do I do if I don’t receive a 1095 form and I think I’m eligible for one?|
|A: If you do not receive a 1095 form and think you should have, contact Employee Benefits Administration at 480-644-2299 or send an email to firstname.lastname@example.org as soon as possible, for research and response.|