Are Form 1095 Still Required?
In the ever-evolving landscape of tax regulations, many taxpayers often find themselves wondering about the necessity of certain forms. One such form is Form 1095, which has been a topic of discussion among individuals and tax professionals alike. The question on everyone’s mind is, “Are Form 1095 still required?” In this article, we will delve into the significance of Form 1095 and whether it remains a mandatory requirement for taxpayers.
Form 1095 is a tax document issued by health insurance providers, employers, and government agencies to taxpayers in the United States. It provides information about the health insurance coverage provided to individuals during a tax year. This form plays a crucial role in determining whether taxpayers are eligible for the premium tax credit and whether they have satisfied the individual mandate requirement under the Affordable Care Act (ACA).
Until recently, Form 1095-B and Form 1095-C were required to be filed with the IRS along with the taxpayer’s tax return. However, in 2020, the IRS announced that it would not enforce the requirement to file Form 1095-B or 1095-C with the tax return for tax years 2020 and 2021. This decision was made in response to the COVID-19 pandemic, which caused significant disruptions in the healthcare industry and affected many individuals’ insurance coverage.
Despite the relaxation of the filing requirement, the question remains: Are Form 1095 still required? The answer is yes, but with some exceptions. Taxpayers who received health insurance coverage through an employer or government program must still keep their Form 1095 for their records. This form serves as proof of coverage and can be used to determine eligibility for the premium tax credit.
Furthermore, taxpayers who are claiming the premium tax credit must still provide their Form 1095 when filing their tax return. The IRS may request this form to verify the information provided on the tax return. In addition, individuals who have not maintained minimum essential coverage throughout the year and are subject to the individual shared responsibility payment must also retain their Form 1095.
In conclusion, while the requirement to file Form 1095 with the IRS has been relaxed for tax years 2020 and 2021, it remains an essential document for taxpayers. Keeping Form 1095 for your records can help you determine eligibility for the premium tax credit, verify coverage, and ensure compliance with the individual mandate. So, the answer to the question, “Are Form 1095 still required?” is yes, but with certain exceptions.
