While the individual mandate penalty has been eliminated at the federal level, health insurance reporting is still very much in effect. If you receive health coverage through a small employer, a government-sponsored program, or directly from an insurer, you will likely encounter Forms 1094-B and 1095-B.
The IRS has released updated draft instructions for these forms for 2025, and understanding their purpose is key to a smooth tax filing process. As your local tax preparer in Harrisburg, PA, Royalty Tax Services is here to demystify these documents and explain what they mean for you.
What Are Forms 1094-B and 1095-B?
These forms are part of the IRS’s information reporting system for health coverage.
- Form 1095-B (Health Coverage): This is the form you receive. It is sent by your health insurance provider, a small employer (not subject to the larger employer mandate), or a government agency (like for Medicaid). It serves as proof that you and your family had qualifying health insurance for the year.
- Form 1094-B (Transmittal of Health Coverage Information): This is a summary form that the provider sends to the IRS along with all of their 1095-B forms. You, as an individual taxpayer, will not receive or file this form.
Why These Forms Still Matter in 2025
Even without a federal penalty, accurate health coverage reporting remains important for several reasons:
- Proof of Coverage: Your Form 1095-B is an official record that you met the requirements for having health insurance. You should keep it with your other important tax documents.
- State-Level Mandates: Some states, though not currently Pennsylvania, have implemented their own health insurance mandates and penalties. Proper documentation is essential if you live or work in such a state.
- Verification and Accuracy: Errors on your 1095-B, such as an incorrect Social Security Number or coverage period, could lead to inquiries from the IRS. It’s crucial to ensure the information matches your tax return.
The latest 2025 draft instructions clarify e-filing requirements and deadlines for the organizations issuing these forms, ensuring the system runs smoothly.
What You Need to Do
When you receive your Form 1095-B in the mail, don’t discard it! Follow these simple steps:
- Review It Carefully: Check that your personal information and the months you were covered are correct.
- Keep It With Your Records: File it with your W-2s, 1099s, and other tax documents. You don’t need to attach it to your tax return, but you may need it for reference.
- Contact the Issuer for Corrections: If you spot a mistake, contact the insurance company or employer that sent the form to get a corrected copy.
Let Royalty Tax Services Simplify Your Tax Filing
Navigating the intersection of health insurance and taxes can be confusing. At Royalty Tax Services, your local tax expert in Harrisburg, Pennsylvania, we make tax season smoother. As part of our professional income tax filing service, we can help you understand your health coverage forms and ensure all the information aligns correctly with your return.
We provide more than just affordable tax preparation in Harrisburg, PA; we provide peace of mind.
Don’t let health insurance forms add stress to your tax season.
📞 Call or text 717-623-2043 or visit MyRoyaltyTax.com today for confident, comprehensive tax support from a trusted tax office near me in Harrisburg.
