badger6
Returning Member

Part time and had an ACA markeplace plan and received a 1095C.

I've been with a large company for a long time as a part time employee. They don't offer health insurance to part time employees. Therefore to comply with the ACA I've signed up with the Healthcare Marketplace for the past few years and received a subsidy toward my premiums. However, this year I received a 1095C with code 1E on line 14 and code 2G on line 16. I'm not sure what this means. 

 

So if my company doesn't offer healthcare for part time employees. And no one within my company ever notified me that I was eligible for coverage. How can they send a form saying that they offered me healthcare coverage? I certainly can't afford to pay back all that subsidy. I'm not sure what to do. Any help is appreciated.

AJ
Level 6

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Code 1E on line 14 indicates that your company did offer coverage to you that meets minimum essential coverage requirements. The code 2G on line 16 indicates that the coverage that you were offered is considered to be affordable based on federal poverty line safe harbor. Perhaps your company office made an error.  If your work status made you otherwise ineligible for coverage, then they should have put Code  1H in line 14 to indicate that you were not made any offer of coverage.  Please check with your company to resolve the issue.  Perhaps they can issue a corrected form if the reported information is incorrect.

 

Here is a reference for the codes: https://www.irs.gov/instructions/i109495c

badger6
Returning Member

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I read on another forum that anything over 30 hrs a week is considered full time on ACA. However, my company considers part time 32 hrs a week or less. And they don't offer health insurance benefits to part time employees. I was definitely under 32 hrs a week and am listed as part time with my company. I probably averaged 31 hrs a week.

 

So if I understand correctly, technically according to the ACA I was full time as far as health coverage goes. At that point, it's up to the company if they offer me coverage or don't. But if at anytime I became eligible for coverage, shouldn't they have notified me? How am I to determine if they offer me coverage at some point during the year if they don't actually OFFER it to me? Seems kind of shady to retroactively say I was eligible for coverage that they never actually told me was available to me after I've already signed up for coverage on the Marketplace.

AJ
Level 6

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Please contact  your company HR office.  If they do not offer health insurance to you, then I believe they should be able to make a corrected form with Code 1H.  However, I cannot claim to be an expert in all of the details of the complicated ACA laws.  Good luck.

badger6
Returning Member

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I talked to HR and they told me that it was based on the hours that I worked the prior year (2017). They really couldn't answer any questions and just told me that they offered me coverage and were required to issue a 1095c. 

However, my last paycheck dated 12/29/17 had me at 1501 actual hours worked for the year 2017. And my last paycheck dated 12/28/18 had me at 1466 actual hours worked for the year 2018. Both years average out to 28-29 hours a week. 

As previously stated, In 10 years I've never been offered health insurance by my company and I've been on an ACA marketplace plan with a subsidy since the law took effect. This is the first time I've received a 1095c. If insurance was available to me for prior years, shouldn't I have received a 1095c for prior years? And If insurance became available to me starting in 2018, shouldn't they have notified me that insurance was available to me prior to the end of 2018? How can they send a 1095c in 2019 saying they offered me coverage retroactively in 2018? Something seems fishy. Anyone else have any info or advice?

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I don't think that the form really affects your health coverage through heathcare.gov. As long as you can prove that you were never offered health coverage you can sign up for health insurance through the marketplace. The only thing you report on your tax return for health coverage is months covered, income, and the form they send you from healthcare.gov (1095-A). From your employers perspective on the 1095C they report that had you been eligible they would have offered health coverage. I really would not worry about forms 1095-C or 1095-B if you do not receive health coverage on them.

badger6
Returning Member

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That's the thing though, the 1095c did say that I was eligible for coverage. As the original reply to my post stated. Code 1E on line 14 indicates that my employer did offer me coverage that meets minimum essential coverage requirements. And code 2G on line 16 indicates that the coverage they offered me is considered to be affordable based on federal poverty line safe harbor. They send a 1095c to me and one to the IRS.

 

As far I can tell, if my employer offers me affordable minimum essential coverage, I do not qualify for a tax credit subsidy through the marketplace. But I did receive a subsidy based on the fact that my employer has never offered me coverage, nor have I ever received a 1095c in prior years. But now this year I get a 1095c with those specific codes, which in essence tells the IRS that I'm not eligible for a subsidy since coverage is available through my employer.

 

I am concerned that the IRS will think that I lied in order to receive the tax credit and make me pay it back. However, my employer never actually offered me health coverage. I'm not sure how I would prove that they didn't offer/notify me that I was eligible for coverage. I'm not sure if there is a way to dispute a 1095c.

 

 

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There needs to be a selection in the Healthcare section that says "I received a 1095-c form"

I spent 2 hours last night trying to figure out what to do with that. It won't let you past that section. Everyone says you don't have to fill that out; but turbo tax won't let you leave it empty.  And no amount of searching will give you a straight answer on what to click on. 

JamesG1
Employee Tax Expert

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You do not have to file Form 1095-C with the IRS, or report it on your 2021 Federal tax return.  Are you required to report this information for your state tax return?  What state tax return are you filing? 

 

You do not need to enter your Form 1095-C to file your return. Just keep it with your files. Since the federal government repealed the health insurance penalty, you will only need to enter your health insurance info if your state or jurisdiction has a penalty for not having it. If we need info about your health insurance, we will ask you about it in your state return.  

 

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