By Tanya L. Burns, LUTCF, RHU, LTCP
Tanya L. Burns and Associates, Inc.
Article submitted by Tanya L. Burns, LUTCF, RHU, LTCP, to share a health insurance update. If you’d like to submit an article, email Kelly Sawyer at email@example.com.
n December 22, 2017, the IRS Extended Reporting due dates for 1095 Forms Sent to Individuals. These extended deadlines are as follows:
Employers and insurers are still encouraged to provide the forms to individuals as soon as possible. Individuals filing their 2017 Federal Income Tax Return before receiving their 1095-B and 1095-C forms will not be required to amend their tax return once they do receive their forms. Individuals should keep their forms once received with their 2017 tax records.
NOTE: The IRS has not extended the due date for filing Forms 1094-B, 1095-B, 1094-C or 1095-C. This deadline remains February 28, 2018 for employers with 250 or fewer forms filing by paper or April 2, 2018 if filing electronically.
Who’s Responsible for Reporting to Individuals? Most insurers are responsible for completing the Form 1095-B. Employers with 50 or more full-time and full-time equivalent (FTE) are responsible for completing Form 1095-C on the group health coverage they offered full-time employees and their dependents.
TAX REFORM BILLINCLUDES REPEAL of INDIVIDUAL MANDATE BEGINNING IN 2019. In addition to the Corporate Tax Rate reducing to 21% (down from 35%) beginning in 2018, the bill incudes Permanent repeal of the Affordable Care Act Individual Mandate requiring individuals to purchase & maintain health insurance. Effective January 1, 2019, the penalty will “zero out”. Individuals are still required to maintain health insurance in 2018 or pay a penalty when filing their 2018 Federal Income Tax Return.