Form 1095-C Explained: What Employees & Employers Must Know
- Form 1095-C is "Employer-Provided Health Insurance Offer and Coverage" β an ACA reporting form.
- It's filed by Applicable Large Employers (ALEs) β those with 50 or more full-time employees (including full-time equivalents).
- Parts I and II are required for all ALEs; Part III only for self-insured plans.
- Employees don't attach it to their tax return β just keep it for their records.
- For the 2025 tax year, employers must furnish it by March 2, 2026.
- Employers can now also meet the requirement by posting a website notice offering copies on request.
If you work for a larger company, a Form 1095-C probably lands in your mailbox each year β and most people have no idea what to do with it. If you run a growing business, you may be wondering whether you now have to send them. This guide clears up both sides: what Form 1095-C is, who has to file it, what the boxes mean, and the deadlines that matter.
What is Form 1095-C?
Form 1095-C, officially titled "Employer-Provided Health Insurance Offer and Coverage," is an IRS form created under the Affordable Care Act (ACA). It records whether a large employer offered health coverage to a full-time employee, what that offer was, and β for some plans β who was actually enrolled.
Its purpose is to show the IRS that employers subject to the ACA's employer mandate met their obligations, and to help determine whether an employee qualifies for the premium tax credit on the Health Insurance Marketplace. It's an information return, similar in spirit to a W-2 or 1099 β a report, not a bill.
Who has to file Form 1095-C?
Only Applicable Large Employers (ALEs) file Form 1095-C. You're an ALE if you had 50 or more full-time employees β including full-time equivalents β in the preceding calendar year.
An ALE must file a 1095-C for each full-time employee, plus a single transmittal form, 1094-C, that summarizes the batch (think of the 1094-C as the cover sheet). Smaller employers with fewer than 50 full-time employees generally don't file 1095-C at all. If you're approaching that headcount, our payroll service can track when the ALE rules start to apply to you.
What's on Form 1095-C?
The form has three parts:
| Part | What it covers |
|---|---|
| Part I | Identifying details for the employee and the employer β names, address, and identification numbers |
| Part II | The offer of coverage for each month β coded lines showing what was offered and the employee's required monthly contribution |
| Part III | The individuals actually covered β completed only for self-insured plans |
Parts I and II are required for every ALE. Part III is filled in only when the employer runs a self-insured health plan and needs to report who was enrolled. The coded lines in Part II are where most of the complexity lives, which is why many employers lean on payroll software or an adviser to get them right.
What should employees do with a 1095-C?
β The short answer: not much. You don't need to attach Form 1095-C to your tax return, and you don't file it yourself. Just check it's accurate and keep it with your records.
You don't have to wait for your 1095-C to file your taxes. It's useful to hold on to because it confirms the months you were offered or had coverage, which can matter if you bought Marketplace insurance and are reconciling the premium tax credit. If any details look wrong β coverage months, contribution amounts β ask your employer to correct it, but otherwise it's simply a record to keep.
When are the 1095-C deadlines?
For the 2025 tax year (forms sent in early 2026), the key dates are:
- Furnish to employees: March 2, 2026 (a permanent 30-day extension from the old January 31 date)
- File with the IRS on paper: March 2, 2026
- File with the IRS electronically: March 31, 2026
Employers filing 10 or more information returns in total must file electronically β a low threshold that catches most ALEs. There's also a newer option: instead of automatically mailing every employee a copy, an employer can post a clear, conspicuous website notice that employees may request their 1095-C, and provide it on request. Given the penalties for late or incorrect filing, this is one deadline set worth diarizing β our US tax services team can handle the whole ACA filing for you.
1095-A vs 1095-B vs 1095-C
There are three forms in the 1095 family, and it's easy to mix them up:
| Form | Who sends it |
|---|---|
| 1095-A | The Health Insurance Marketplace, if you bought a plan there β this one is needed to file |
| 1095-B | Insurers and smaller self-insured employers, showing minimum essential coverage |
| 1095-C | Applicable Large Employers (50+ full-time employees) |
The one you may actually need before filing is the 1095-A. The 1095-B and 1095-C are for your records.
Frequently asked questions
Do I need my 1095-C to file my taxes?
No. You do not attach Form 1095-C to your federal tax return and you don't need to wait for it to file. Keep it with your records. The form that you may need before filing is the 1095-A, sent to people who bought Marketplace coverage.
Who has to send Form 1095-C?
Applicable Large Employers β businesses with 50 or more full-time employees, including full-time equivalents, in the prior year. They file a 1095-C for each full-time employee plus a 1094-C transmittal summarizing the batch.
What is the difference between 1095-B and 1095-C?
Form 1095-B is sent by insurers and smaller self-insured employers to show minimum essential coverage. Form 1095-C is sent by Applicable Large Employers and reports the offer of coverage to full-time employees, with Part III used only for self-insured plans.
What is the 1095-C deadline for 2026?
For the 2025 tax year, employers must furnish Form 1095-C to employees by March 2, 2026. Paper filing with the IRS is also due March 2, 2026, and electronic filing is due March 31, 2026. Employers with 10 or more information returns must file electronically.
We'll confirm whether you're an ALE, prepare your 1095-C and 1094-C forms, and file them with the IRS on time and correctly. Fixed fee, no jargon. Get a quote or message us today.
Related: our payroll service, our US tax services, and our guide to what a 1099 form is. Official guidance is on the IRS 1094-C and 1095-C reporting pages.