In seminar I took last week instructor stated that in 2015 taxpayers that have health insurance cannot file their return until they get the 1095 form from insurance company or MN Sure. She also stated that insurance companies have until end of February 2016 to get 1095 forms out. I am taking other continuing education but that is on line so no questions can be asked. Last year we could take clients word that they had health insurance and file return. Was wondering if this is a new requirement for this year or just the presenters interpretation, etc. I do not have my software yet so perhaps there is info that has to be entered from Form 1095 before we can efile, not sure. Just wondering what others have found out at their seminars, etc.
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They must be mailed to the individual by January 31st, not the end of February. The transmittal form (1094) needs to be filed with the IRS by the end of February (end of March if e-filing). In other words, it's the same due dates as the W-2/W-3 and 1099/1096.
Although the 1095-A from the Marketplace does need to be entered, I see no reason why the 1095-B or 1095-C would need to be entered into our software. However, we may want to require to see it as part of our 'due diligence' for preparing the return. Because it has the same due dates as the W-2 and 1099s, it shouldn't be a major problem to need to see the 1095. -
I may let a few clients slide without the actual form that I know very well, but for the most part I'm going to require the form.
Also, there will likely be a lot of situations where the parent claiming the child is not a parent that provides insurance. In that case, I'm going to be asking client claiming to get copy of the 1095 from ex.
I'll be putting in all in annual letter, so they know to bring the docs to appointment.Comment
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Just be aware. An automatic extension of 30 days to mail these forms can be obtained by filing a Form 8809. Many taxpayers may not have them on January 31.Originally posted by TaxGuyBill View PostComment
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Originally posted by New York Enrolled Agent View Post
Form 8809 is to extend the filing of the transmittal forms to the IRS. The statements to the taxpayers are still due January 31st. There is an option to manually write to the IRS for an extension for this, but it is not automatically approved.Comment
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I took a similar webinar this morning. the issue deadline is 1/31/2016 for the 2015 tax year and 02/28/2017 for TY 2016.
1095A is issued by Exchange/Medicare/Medicaid and other govt programs
1095B is issued by Insurance companies you need it to determine coverage
1095C is issued by employer-must issue whether or not they provide insurance
It is recommended by the seminar that you keep a copy or be sure you have a document that proves coverage. I am going to require it.Believe nothing you have not personally researched and verified.Comment
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I see the 1095's as an easy way to verify insurance coverage. I do not do many of the type of returns the early filing crowd tend to have, so for me waiting for the 1095's won't be an issue. And really, it's not like the IRS has taken returns very early anyway. If they don't start processing returns til the last week of January anyway waiting for Jan 31 doesn't seem that bad.Comment
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1095c
Are you saying that every company must issue a 1095C? Including those with less than 50 full-time employees?Originally posted by taxea View Post
The instructions for the 1095C say all "Applicable Large Employers", thouse with 50 or more full-time employees.
Now, back to the original question. I can't hold up returns until the 1095B or 1095C shows up. I wouldn't be able to complete all returns by April 15.
I intend on having all clients sign the same statement I had last year. There will be a checkbox on YES or NO if the 1095 is provided. If not, there will be a statement before the signature that the client will provide it as soon as they receive it. I will keep a list of those that are missing the 1095.
I do not have any clients that will be receiving a 1095A.Jiggers, EAComment
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1095B comes from the insurance companies that sell policies to companies with less than 50 employees. The employer itself does not need to file the form.Originally posted by Jiggers View Post
A client may receive multiple 1095's if they changed insurance or covered individuals during the year.
My guess is it being the first year some of the 1095's will be incorrect. The info will also be sent to the IRS, so I'd rather head off any incorrect forms b4 the IRS does matching.
I was really surprised last year by the number of clients last year that were very confused by if they were covered or not. My fav was a very right-wing client who insisted she did not have "Obamacare" since she got a policy from the marketplace. LOL.Comment
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1095C is for employers with 50 or more full time equivalent employees. The employer- rather than the insurance company- is responsible for providing the forms to employees.Originally posted by spanel View PostComment
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If any 1095 is issued for 2015 and beyond I will require it to complete the return. If the return has to be extended...so be it. The responsibility to provide all pertinent documents belongs to the client, not me and I won't file a return I know is not complete because I don't have a document that was issued to TP and TP didn't give it to me. They are delaying their own refund. Not my problem.Originally posted by Jiggers View PostBelieve nothing you have not personally researched and verified.Comment
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Is asking a client to sign a statement that he has insurance any different than having him complete an organizer and using that information to complete his return?
Is using a client's in lieu of a 1099INT or 1099INT any different?
I think not.
We can set our own requirements for our own due diligence.Jiggers, EAComment
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So if I'm understanding this correctly, and employer who has less than 50 employees and does not offer health insurance coverage is not required to file anything (aside from the W-2 of course)."The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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From whats posted above, even if they do offer health insurance, just a w2 issued.Originally posted by JohnH View Post
ChrisComment
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