What Is Form 1095-C?
IRS Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, reports on the health coverage an employer offered to employees during the calendar year. It’s a core form for employer health coverage reporting under the ACA.
Introduced for the 2015 tax year under IRC Sections 6055 and 6056, it provides the IRS data to determine whether an employer offered affordable, minimum-value coverage to full-time employees and dependents.
Employees don’t use Form 1095-C to claim deductions or credits, but it can confirm coverage status and may matter for those who received Marketplace premium tax credits.
Who Must File Form 1095-C?
Applicable Large Employers (ALEs), or those averaging 50+ full-time employees (including full-time equivalents) in the prior calendar year, must file.
- Full-time employee: Averages 30+ hours/week or 130 hours/month.
- FTE: Part-timers whose combined hours equal full-time (e.g., two at 15 hrs/week = 1 FTE).
ALEs file a Form 1095-C for every full-time employee employed during any month, whether they enrolled in coverage. Self-insured employers must also complete Part III for all enrolled individuals.
Penalties for late or incorrect filing: $340 per form, up to $4,098,500 annually (IRS 1095-C Instructions, 2025).
Who Receives Form 1095-C?
Every full-time employee eligible for coverage during any month receives Form 1095-C, even if they declined the plan. Employees should retain it for records but don’t need to attach it to their tax return.
Under the PBRA and IRS Notice 2025-15, employers may now post a clear, conspicuous website notice (with email, mailing address, and phone number) instead of automatically mailing forms. For 2025, the notice must be posted by March 2, 2026, and remain through October 15, 2026. Requested copies must be furnished within 30 days or by January 31, 2026, whichever is later.
Learn why providing a copy of Form 1095-C proactively still makes sense as an employer.
What Information Is Reported on Form 1095-C?
The form has three parts. Parts I and II are required for all ALEs; Part III applies only to self-insured plans.
Employer and Employee Information (Part I)
- Employer and employee names, SSN/EIN, and addresses
- Contact phone number for employee inquiries
- Plan Start Month (required; cannot be left blank)
Employee Coverage Details (Parts II and III)
Part II reports month-by-month:
- Line 14: Code Series 1 — type of coverage offered
- Line 15: Employee’s share of the lowest-cost, self-only minimum-value premium
- Line 16: Code Series 2 — affordability safe harbors or other relevant details
Part III (self-insured only) lists each covered individual’s name, SSN/DOB, and months of coverage. Self-insured ALEs can combine 1095-B and 1095-C reporting on a single form.
Form 1095-C Filing Deadlines
2025 tax year deadlines:
| Deadline | Action |
| March 2, 2026 | Furnish employee copies (or post PBRA website notice) |
| March 2, 2026 | Paper filing with IRS (10 or fewer returns only) |
| March 31, 2026 | Electronic filing with IRS via the AIR system |
- Employers with 10+ information returns must file electronically.
- State deadlines may differ — California, New Jersey, Rhode Island, and D.C. have separate requirements.
Form 1095-C vs. 1095-A and 1095-B
| Form | Issued By | Purpose |
| 1095-A | Health Insurance Marketplace | Reports Marketplace coverage and premium tax credits |
| 1095-B | Insurers or small self-insured employers | Confirms minimum essential coverage |
| 1095-C | Applicable Large Employers | Reports coverage offered to full-time employees |
- Only1095-A is needed for tax filing (to reconcile premium tax credits on Form 8962).
- 1095-B documents actual coverage;1095-Cdocuments what was offered.
- Self-insured ALEs combine both functions into a single 1095-C.
Common 1095-C Filing Errors
- Incorrect/missing SSNs. Verify against W-4 or W-9 records.
- Wrong Line 14 offer codes. Incorrect entries can trigger IRS Letter 226-J penalties.
- Wrong Line 15 premium. Must reflect the lowest-cost self-only option, not the employee’s actual plan.
- Incomplete monthly codes. Every month on Lines 14 and 16 needs a code, even non-employment months.
- Blank Plan Start Month. Required on every 2025 form; blank = rejection.
- Overlooking state filings. CA, NJ, RI, and D.C. require separate filings.
Related: How To Report 1042S
How to Stay Compliant with 1095-C Reporting
- Determine ALE status early — count FTEs well before filing season.
- Keep records current — track hours, offers, and enrollment year-round.
- Use correct codes — reference the IRS 1095-C Instructions for Code Series 1 and 2.
- Validate before filing — cross-check against payroll and W-2 data.
- Automate — ACA software generates forms, validates data, and e-files.
- Track all deadlines — including state-specific due dates.
- Retain records three years — the IRS can request prior-year documentation.
Frequently Asked Questions
What is Form 1095-C used for?
It reports the health coverage an ALE offered to full-time employees. The IRS uses it to enforce employer mandate compliance and verify premium tax credit eligibility.
Do employees need Form 1095-C to file taxes?
No. It’s not required for filing. The only 1095 form needed for tax returns is Form 1095-A (for Marketplace premium tax credit reconciliation).
Who is required to file Form 1095-C?
ALEs with 50+ full-time employees (including FTEs) during the prior year, under IRS Code Section 6056. Non-ALEs with self-insured plans use Form 1095-B instead.
When is Form 1095-C due?
For 2025: employee copies by March 2, 2026; IRS electronic filing by March 31, 2026.
What happens if Form 1095-C is filed incorrectly?
Penalties of $340 per return (2025 tax year), capped at $4,098,500 annually. Intentional disregard removes the cap.
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