- Part I is the Employee and Employer Information (name, address, and other basic information for both parties).
- Part II is the Employee Offer and Coverage (the coverage offered by the employer). If you were not offered coverage from your employer, the reason why would be given in Part II.
- Part III is the Covered Individuals (information about those covered under the plan).
The form is directly geared toward those individuals who may have received a premium tax credit (often referred to as a 'subsidy') through a marketplace or exchange. "The information provided on the form may indicate that the employee should or should not have received the premium tax credit," Tacchino notes. "No matter what the case may be, it is clear that individuals should keep this tax form with the rest of their tax forms/filings."
Tax filers who aren't clear about 1095-C should refer to the form when weighing the need to check the "Health care: individual responsibility" box on their IRS tax returns, which tells the federal government you have full-year health coverage. (The check-off box is on Line 61 on IRS Form 1040; Line 11 on IRS Form 1040EZ, and Line 38 on IRS Form 1040A.)
If you're an employee who received 1095-C, the form will indicate whether you were covered by health insurance the entire year or only certain months during the year, Zimmerman says. "When you are completing your tax return and come across the question that asks if you had health insurance coverage during the past year, you will simply check "Yes" or "No" and indicate which months you did or didn't have coverage," he notes. "You don't need to do anything else with this form other than file it away with your other tax documents."