TCJA Impacts on the Affordable Care Act

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ACA Reporting Reminder – Forms 1095-B & 1095-C

By: Dave Reyes, CPA

With the many changes in the tax laws over the past year, especially with the Tax Cuts and Jobs Act passed in December 2017, there have been questions about its impact on the Affordable Care Act for the 2018 year. Specifically, questions have arisen as to how these changes may affect the filing of forms 1095-C and 1095-B which are normally prepared and provided to taxpayers this time of the year. What follows is a quick summary of where things are at with the ACA, and the related filing requirements for 2018.

The Tax Cuts and Jobs Act essentially eliminated the individual mandate penalty beginning with the 2019 year. What this means though is that for 2018, individuals were still required to have medical coverage or be subject to penalties under Section 6055 of the tax code.  The application of this penalty is based on the annual ACA filings required of health insurance providers for fully insured plans or by employer sponsors of self-insured plans. Form 1095-B reports which employees and family members have coverage during the year on a month by month basis. The due date for providing these forms to individuals was originally January 31, 2019.  However, this deadline was extended by the IRS until March 4, 2019. The due date to file these forms with the IRS remains February 28, 2019, if reporting on paper, or April 1, 2019 if reporting electronically.

ACA Reporting

In addition to the individual mandate, certain employers are subject to the employer mandate. The Tax Cuts and Jobs Act made no changes to the employer mandate. The employer mandate in general provides that an applicable large employer must provide health care coverage to their full-time employees or be subject to a penalty under Section 6056 of the tax code. Applicable large employers are defined as employers who employ an average of 50 or more full-time or full-time equivalent employees during the preceding calendar year.  Employers subject to the employer mandate are required to annually file forms 1095-C for their employees. The IRS uses this information to determine whether the employer mandate penalty should apply.

The key takeaway here is the reporting requirements for both the individual mandate and employer mandate still apply for 2018. The deadline for providing these forms to employees is March 4, 2019. A copy of these forms is also filed with the IRS no later than February 28, 2019, or April 1, 2019 if filed electronically. The good news here is that because of the repeal of the individual mandate penalty, this is the last year of having to file the form 1095-B.

If you have any questions about any of these ACA filings or the specific due dates, contact Dave Reyes at 216-344-5233 or at