The undesirable subject of taxes. No one wants to talk about them; unfortunately, they’re a part of life and you can’t get rid of them. And this year, the uncertainty around specific forms and healthcare certainly doesn’t make the subject any more exciting to talk about. But, we need to.
Here’s why.
The Affordable Care Act (ACA) requires all health plans to provide a 1095 form to all participants enrolled in a health plan any time during 2015. It also requires all Applicable Large Employers (ALE) — employers with 50 or more employees — to provide a 1095 to all full-time employees offered coverage during 2015. What this means is if your health plan is fully insured, you’re supposed to receive one 1095 form from your insurer and one 1095 form from the ALE offering coverage.
When Will You Receive Your 1095 Tax Form?
January 31, 2016, is the key date to keep in mind — everyone is supposed to receive the 1095 forms by then. However, insurers, employers and vendors are scrambling to meet that looming deadline. While the impending date has been known for several years, almost everyone is behind schedule due to uncertainty around form specifics and constantly changing/postponed deadlines under the ACA.
Vendors are overwhelmed with the marketplace demands and work associated with the first-time development and implementation. And, size doesn’t matter either. Some of the largest software vendors took until late November to provide their first beta file to clients. At least one state employer was still searching for a vendor, as several vendor arrangements fell through late in November.
But, don’t worry — I’m sure it will all work out. It has to! H&R Block, TurboTax and other tax preparers will require the form for you to complete your 2015 tax return. You can also be comforted by the fact that under the Paperwork Reduction Act, the 1095B form is estimated to only take you 1 minute per form to complete.
All of that is a mouthful (and let’s be honest, a bit confusing) — I get it! So, what questions do you have for me? Trust me, if you have a question, it’s likely someone else is wondering the same thing. Comment below and ask! Let’s get the conversation going!