Key takeaways
– Form 1095‑B, “Health Coverage,” is an IRS information return that documents who had minimum essential health insurance and the months covered under that plan. (IRS)
– You receive 1095‑B from insurers, government programs (Medicaid, Medicare in some cases), or small self‑insured employers; marketplace enrollees get 1095‑A; large employers may issue 1095‑C. (IRS)
– For federal taxes, the individual shared‑responsibility penalty was reduced to $0 starting with the 2019 tax year (Tax Cuts and Jobs Act). However, some states maintain their own individual‑coverage penalties. (IRS; state guidance)
– You generally do not file the 1095‑B with your tax return. Keep it for your records and use it to verify coverage if required (or to resolve disputes with the issuer). (IRS)
What is Form 1095‑B?
Form 1095‑B, Health Coverage, is an informational form that shows the type of minimum essential coverage you had, who in your household was covered, and the months of coverage during the tax year. It is issued by health insurance providers and some self‑insured employers. (IRS)
What information appears on Form 1095‑B?
– Policyholder and covered individuals’ names and Social Security numbers (or other identifiers).
– Name, address, and EIN of the coverage provider.
– The months in which each individual had minimum essential coverage.
Who sends Form 1095‑B (and who receives other 1095 forms)?
– 1095‑B: health insurers, government programs, or small self‑insured employers. (IRS)
– 1095‑A: Marketplace (HealthCare.gov or state exchanges) only—required if you received advance premium tax credits; you must use it to reconcile premium tax credits on Form 8962. (IRS)
– 1095‑C: Applicable large employers (50+ full‑time employees) report offers and coverage for employees. You might receive 1095‑C instead of 1095‑B if your employer reports coverage. (IRS)
What is Form 1095‑B used for?
– It documents minimum essential coverage for the tax year. Before 2019 it helped determine liability for the federal individual shared‑responsibility payment (the “individual mandate” penalty). Since the penalty was set to $0 beginning with tax year 2019, the federal penalty no longer applies. (IRS)
– It still serves as proof of coverage for your records, for state tax filings if your state has its own mandate, and to resolve questions about whether someone in your household had coverage.
Do I have to attach Form 1095‑B to my tax return?
– No. You generally do not file the 1095‑B with your federal income tax return. Keep it with your tax records. For federal returns after 2018 there is no federal shared‑responsibility penalty to reconcile, so the 1095‑B is not required to be submitted. (IRS)
State penalties and exceptions
– Some states (for example, Massachusetts, New Jersey, Rhode Island, California, Vermont, and the District of Columbia in various years) have their own individual mandates and penalties. If you live in a state with a mandate, you may need Form 1095‑B (or other proof of coverage) to avoid or calculate a state penalty. Check your state tax guidance. (State tax resources)
Practical steps — when you receive Form 1095‑B
1. Review it right away:
– Confirm names and SSNs (or other identifiers) are correct.
– Verify the coverage months for each person match your records.
2. Use it to check other filings:
– If you received advance premium tax credits from the Marketplace, make sure your 1095‑A reconciles correctly with Form 8962. (1095‑A is separate.)
3. Keep it with your tax records for at least three years (longer if you’re subject to state mandates or potential audits).
4. You do not need to attach the form to your federal return, but keep it in case the IRS or your state asks for documentation.
Practical steps — if you don’t receive a 1095‑B or it’s incorrect
1. Contact the issuer (insurance company, program administrator, or employer) first and request a corrected or replacement form. Many issuers can provide an electronic copy or mail a paper copy.
2. If your issuer posts a notice on its website that Forms 1095‑B are available upon request and furnishes one within 30 days of request, the IRS will not penalize the issuer (safe harbor). If they comply with that rule, you may have to request the form rather than rely on automatic mailing. (IRS guidance)
3. If the issuer refuses or fails to correct a clearly wrong Form 1095‑B, you can contact the IRS for guidance on next steps. Keep a record of your communications. (IRS)
How to report health coverage on your federal tax return
– For federal years starting 2019, the federal individual shared‑responsibility payment is $0, so you generally do not need to report months of coverage on your federal return. (IRS)
– If you are required by a state to report coverage (or claim an exemption), follow your state’s instructions. Keep Forms 1095‑A/B/C to support your state return if requested.
Differences: 1095‑A vs. 1095‑B vs. 1095‑C (quick comparison)
– 1095‑A: Marketplace plan enrollees—needed to reconcile premium tax credits (Form 8962). (IRS)
– 1095‑B: Coverage by an insurer, government program, or small self‑insured employer—shows who had minimum essential coverage. (IRS)
– 1095‑C: Large employers (50+ employees) report offers of employer‑sponsored coverage and employee months of coverage. (IRS)
Recordkeeping recommendations
– Keep Forms 1095‑A/B/C with your tax records for at least three years after filing your return (longer if you have state filing issues, received advance credits, or there is a potential dispute).
– Keep documentation of communications with issuers and any corrected forms.
Where to find the forms and official instructions
– About Form 1095‑B, Health Coverage — IRS: https://www.irs.gov/forms-pubs/about-form-1095-b
– Instructions for Forms 1094‑B and 1095‑B — IRS: https://www.irs.gov/instructions/i109495b
– About Form 1095‑A — IRS: https://www.irs.gov/forms-pubs/about-form-1095-a
– About Form 1095‑C — IRS: https://www.irs.gov/forms-pubs/about-form-1095-c
– Individual Shared Responsibility Provision (background) — IRS: https://www.irs.gov/newsroom/individual-shared-responsibility-provision
– Investopedia summary: https://www.investopedia.com/terms/f/form-1095b.asp
Bottom line
Form 1095‑B is primarily a record that you and family members had minimum essential health coverage in a tax year. In most cases you keep it for your records and do not file it with your federal return. If it’s missing or wrong, contact the issuer; if you received Marketplace advance credits, use 1095‑A to reconcile on your tax return. Check state rules if you live in a state with its own individual‑coverage mandate.