What is IRS Form 1095-C? A Complete Guide for Employees & Taxpayers (2026 Update)

What is IRS Form 1095-C? If you work for a large employer and received (or are waiting for) a mysterious tax form in early 2026, it’s likely IRS Form 1095-C. This form, officially titled “Employer-Provided Health Insurance Offer and Coverage,” is a key document tied to the Affordable Care Act (ACA). It reports what health coverage your employer offered you during the 2025 calendar year.

You do not attach Form 1095-C to your tax return. Keep it with your records. It helps verify coverage, determine eligibility for the premium tax credit (PTC) if you used Marketplace insurance, and supports IRS compliance checks.

This complete guide explains everything employees and taxpayers need to know about Form 1095-C in 2026, based on the latest official IRS guidance for the 2025 tax year.

What is IRS Form 1095-C?

Form 1095-C is an information return that Applicable Large Employers (ALEs) — generally companies with 50 or more full-time employees (including full-time equivalents) in the prior year — must file with the IRS and furnish to qualifying employees.

It shows, month by month for all 12 months of 2025:

  • Whether your employer offered you (and your family) minimum essential coverage that provides minimum value.
  • The employee’s required contribution for the lowest-cost self-only coverage (if applicable).
  • Whether you or family members enrolled in self-insured employer coverage.

Key fact: Even if you declined the offer or had no coverage, the form still reports what was offered.

The form helps the IRS:

  • Enforce employer shared responsibility provisions (Section 4980H).
  • Determine if employees qualify for premium tax credits on HealthCare.gov or state Marketplaces.

Who Receives Form 1095-C?

You should receive one if both apply:

  1. Your employer is an ALE (50+ full-time or full-time equivalent employees in 2024).
  2. You were a full-time employee (averaging at least 130 hours per month or 30 hours per week) for one or more months in 2025.

You may also receive it if you enrolled in your employer’s self-insured health plan, even as a part-time or non-full-time employee.

  • If you changed jobs or had multiple large employers in 2025, you may receive multiple 1095-C forms.
  • Small employers (under 50 full-time equivalents) do not issue Form 1095-C.

2026 Update on Delivery: Employers no longer must automatically mail or email Form 1095-C. They can post a clear notice on their website offering the form upon request. If requested, they must provide it by the later of January 31, 2026, or 30 days after your request (per IRS Notice in the 2025 instructions). Many employers still mail copies proactively or provide them via payroll portals.

Purpose of Form 1095-C for Employees & Taxpayers

The form is informational only — it proves what coverage was available from your employer. Use it to:

  • Confirm you had (or were offered) minimum essential coverage for the individual shared responsibility provision (though the federal penalty is $0 since 2019, some states have their own rules).
  • Reconcile premium tax credits if you bought Marketplace coverage while your employer offered affordable coverage.
  • Support your tax records in case of IRS questions.

Important: If you enrolled in Marketplace insurance and received advance premium tax credits, Part II of your 1095-C helps determine if the employer offer was “affordable.” An unaffordable offer (employee share > 9.02% of household income for 2025 in many cases) may allow you to keep the credit.

Breaking Down the Sections of Form 1095-C

Part I – Employee and Employer Information

  • Your name, SSN (full SSN filed with IRS; often last 4 digits shown to you), address.
  • Employer’s name, EIN, contact phone number (use this if the form has errors).

Part II – Employee Offer of Coverage (the most important section)

  • Line 14: Offer of Coverage code (1A–1U). Common codes:
    • 1A — Qualifying Offer (minimum value coverage offered to you + spouse/dependents, affordable for all 12 months).
    • 1B–1E — Coverage offered to employee only, employee + dependents, etc.
    • 1H — No offer made.
    • 1L–1U — Individual Coverage HRA offers (newer options).
  • Line 15: Monthly employee required contribution for the cheapest self-only minimum-value plan (shown only for certain codes).
  • Line 16: Safe harbor or relief code (helps IRS assess employer penalties, not usually relevant to your taxes).
  • Line 17: ZIP code used for affordability calculations (if HRA).

Part III – Covered Individuals (only if self-insured plan)

  • Lists you and any enrolled family members with names, SSNs/TINs, and months of coverage.
  • Provide copies to family members who need it for their records.

The form includes a plan start month and your age on January 1, 2025, for certain calculations.

How to Use Form 1095-C When Filing Your 2025 Taxes?

  1. Do NOT attach it to your Form 1040.
  2. Keep it with your W-2, 1095-A (if Marketplace), and other records for at least 3 years.
  3. If you had Marketplace coverage: Compare the offer in Part II with your 1095-A. Use Form 8962 to reconcile advance payments.
  4. If no Marketplace coverage: The form is usually irrelevant for your return unless you need to prove coverage for state taxes.
  5. File your return on time — you do not need to wait for 1095-C.

Pro tip: Software like TurboTax or H&R Block will ask about employer offers and import data if you upload the form.

2025–2026 Deadlines (What Employees Need to Know)

  • Furnishing to employees: Automatic extension to March 2, 2026 (or 30 days after request under alternative method).
  • Filing with IRS: March 2, 2026 (paper) or March 31, 2026 (electronic) for most ALEs.
  • Employers who file 10+ returns must e-file.

Form 1095-C vs. 1095-A vs. 1095-B

Form Who Issues It What It Shows Do You Attach It?
1095-C Large employers (ALEs) Offers of coverage + self-insured enrollment No
1095-A Health Insurance Marketplace Marketplace plan details & premiums No
1095-B Insurers or small employers Actual coverage details (non-ALE) No

You may receive more than one form if you had multiple sources of coverage.

What If You Don’t Receive Form 1095-C?

  • Contact your employer’s HR or benefits department (use the phone number on the form if you have an old copy).
  • You can still file your taxes using other proof of coverage (pay stubs showing deductions, insurance cards, etc.).
  • The IRS already receives a copy from your employer, so missing your copy doesn’t delay filing.

Frequently Asked Questions (FAQ)

Do I need Form 1095-C to file my taxes?
No. File when you’re ready.

Does Form 1095-C mean I had health insurance?
Not necessarily — it shows what was offered. Check Part III for actual enrollment if self-insured.

Can my employer penalize me for not taking their offer?
No. The form is purely informational.

What if the form has errors?
Contact the employer immediately using the phone number in Part I. They can issue a corrected form.

Is Form 1095-C still required after the individual mandate penalty ended?
Yes — employers must still report for ACA compliance and premium tax credit purposes.

Final Tips for Employees & Taxpayers

  • Save digital and paper copies of every 1095-C you receive.
  • If you switched jobs in 2025, gather forms from all ALE employers.
  • Consult a tax professional or use IRS Free File if you had Marketplace coverage and an employer offer — the interaction can be complex.
  • For the latest official details, visit IRS.gov/Form1095C or IRS.gov/ACA.

Understanding Form 1095-C removes the mystery from your mailbox and helps you file confidently. While the form itself doesn’t affect your refund directly in most cases, it’s a vital piece of your tax puzzle — especially if you mix employer and Marketplace coverage.

Trusted Sources (All Accessed February 2026):

  • IRS.gov – About Form 1095-C
  • 2025 Instructions for Forms 1094-C and 1095-C (PDF)
  • IRS Questions & Answers about Health Care Information Forms for Individuals
  • Official 2025 Form 1095-C (PDF)

Stay organized, file accurately, and keep those important documents handy. If your situation involves Marketplace subsidies and an employer offer, double-check affordability rules with IRS Publication 974 or a tax advisor.

This guide is for informational purposes only and is not tax advice.