Under the Affordable Care Act (ACA), certain employers and health insurance providers are required to report coverage information using Form 1095-B. IRS Form 1095-B shows who had health insurance coverage for the specified year. This information must be filed with the IRS and provided to insured individuals.
Filling out this form correctly and promptly is crucial to stay compliant and dodge penalties. This piece will provide you with some handy tips for filing your ACA Form 1095-B accurately and quickly.
Deciphering the Form 1095-B
Before we delve into the tips, it’s critical to comprehend Form 1095-B. The form has 4 parts:
Part I includes information about the responsible individual, such as name, social security number, and address.
Part II contains data regarding employer-provided coverage if applicable.
Part III presents the insurer’s details.
Part IV itemizes the insured individuals and the months they were covered.
Begin Collecting Necessary Information Early
The initial step towards fast and correct filing is to start collecting the required data early. This involves the names, social security numbers, and birth dates of all individuals insured under your health insurance policy. Plus, you’ll need to know the months each person was covered during the tax year. Postponing can lead to mistakes, so the earlier you begin, the better.
Confirm Information Accuracy
Make sure all the collected information is accurate. Cross-verify the social security numbers and names of all insured individuals. Also, confirm the coverage dates for each person. Errors here can result in incorrect filings and possible penalties.
Grasp the Specific Lines and Sections of the Form
Each line and section of Form 1095-B serves a specific function, so it’s important to get to know all of its requirements. We recommend reaching out to the IRS or a tax expert if you find any portion of this filing confusing.
Opt for IRS-Endorsed Software or Professional Assistance
Think about using IRS-endorsed software or hiring a tax professional. This can dramatically decrease the likelihood of errors and simplify the filing process. These tools are developed to walk you through the process and help guarantee accuracy and compliance.
Review Before Submission
Prior to submitting your Form 1095-B, take a moment to thoroughly examine it. Ensure all sections are filled out and the information given is accurate. Investing a little more time in reviewing can save you from future problems.
File Electronically If You Can
Electronic filing can make the process more streamlined and lower the chances of errors linked to manual data input. The IRS promotes electronic filing, and in some instances, it’s mandatory.
Stay Informed With ACA Rules
ACA rules can change annually. Make sure you’re updated on any changes to Form 1095-B requirements before you start filing. The IRS website is a reliable source for the most current ACA rules.
Filing your ACA Form 1095-B correctly and promptly is key to staying on the right side of the law and avoiding potential penalties. By collecting and verifying your information early, understanding the form, using reliable tools, and staying current with ACA rules, you can ensure a seamless filing process. Always seek professional help if you’re unsure during any part of the filing process. It’s better to be safe when it comes to your taxes!