Drake Tax - ACA Reporting Forms 1095-A, 1095-B, 1094-C, 1095-C

Article #: 13091

Last Updated: October 18, 2024

 

Tags: Drake Tax 1095A1095B1095C

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Forms

Form 1095-A

Form 1095-A is filed by Health Insurance Marketplaces to report information on all enrollments in qualified health plans in the individual market through the Marketplace. The report is filed with the IRS on or before January 31 following the calendar year and a copy is sent to individuals. See the Form 1095-A Instructions for details.

Form 1095-B

Health coverage provided by an insurance company, self-insured small employer or government agency is reported on Form 1095-B. The report is filed with the IRS on or before February 28 if filing on paper (or March 31 if filing electronically) following the calendar year and a copy is sent to the responsible individual (generally the primary insured, employee, parent or uniformed services sponsor).

Form 1094-C

All Applicable Large Employer (ALE) Members are required to file Forms 1094-C and 1095-C for Coverage Years starting in 2016.

Health coverage provided by a self-insured large employer (an "applicable large employer" or ALE - over 50 employees) is reported on Form 1095-C. The report is filed with the IRS on or before February 28 if filing on paper (or March 31 if filing electronically) and a copy is sent to employees.

Form 1095-C

Health coverage offered or provided by an applicable large employer is reported on Form 1095-C.

Tip  Information reported on Form 1095-C was previously used for completing screen 8965. Due to changes from the TCJA, screen 8965 is no longer available as the penalty for not having minimum essential coverage is zero starting in tax year 2019. No exemptions are available, or necessary, starting with tax year 2019.

Data Entry

Screen HC

If the taxpayer had insurance for the entire year use the HC screen drop list. Links to additional screens that may be needed are provided in the top portion of the screen regarding full-year coverage.

Data Entry for Dependent AGI information is also available on the HC screen. These entries are available for dependents who are required to file a federal income tax return for the same year.

Screen 95A

Screen 95A is located on the Health Care tab in data entry of the return. On this screen, you will enter the information from the taxpayers' Form 1095-A. Information that is entered on this screen will be used to calculate Form 8962, the Premium Tax Credit (PTC). Any credit due or excess repayment figured on Form 8962 will flow to Form 1040. When you view the return you will not see a 1095-A form, only Form 8962. Form 1095-A is not produced in View/Print mode.

Tip  Shared policy allocation data entry points are available at the bottom of the 95A screen. See Drake Tax - 8962: Shared Policy Allocation (ACA) for details.

Watch the video Screen 95A for a demonstration.

Note  If line 2 of a taxpayer's Form 1095-A displays a Marketplace-assigned policy number that is over 15 characters, you will need to enter only the last 15 characters on screen 95A. This is because the IRS limits this field to 15 characters. The 1095-A itself is supposed to display only the last 15 characters of a policy number that exceeds that limit, according to the Instructions for Form 1095-A for line 2.

If the taxpayer received multiple Forms 1095-A, you will need to complete multiple 95A screens. For each 95A screen, enter the policy number in the Marketplace assigned policy number field on line 2. The software requires the policy number to differentiate between Forms 1095-A. EF Message 6234 is generated if the field is left blank.

Check boxes at the bottom of screen 95A may be needed in some cases. Be sure to review Note 433, notifying you to confirm that you have not duplicated this information on screen A and the OVERFLOW statement explaining Schedule A, Line 1.

Caution  Consider the impact of the check box if:

  • the premiums are already entered on screen A

  • the taxpayer is claiming the Self-employed Health Insurance Deduction (SEHID).

Screen 8962

Screen 8962 is located on the Health Care tab in data entry of the return. There are overrides available for lines 4 and 11-23 (flowing from Form 1095-A). If the taxpayer must complete Part 5: Alternate Calculation for Year of Marriage, these fields are available at the bottom of the 8962 screen for this purpose. A taxpayer can only use the alternative calculation if filing jointly with the new spouse.

Important  If household income is over 400% of the poverty level, PTC is not allowed, however, the taxpayer may be eligible to use the alternative calculation to reduce the amount of APTC that must be repaid.

See Table 4 in the Form 8962 Instructions for other limitations. EF Messages 6206 and 6231 will generate if entries are made in these fields when they are not eligible for this calculation.

Note  If the taxpayer moved during the current tax year and they lived in Alaska and/or Hawaii during the year, or are filing jointly and the taxpayer and their spouse lived in different states, per the Form 8962 Instructions, the taxpayer must use the table with the higher dollar amounts for their family size.

If the taxpayer is not eligible for the Premium Tax Credit, Form 8962 will not produce, but Worksheet 8962 will still produce to show why the credit was disallowed.

Screen 8965

Due to changes from the TCJA, screen 8965 is no longer available as the penalty for not having minimum essential coverage is zero starting in tax year 2019. No exemptions are available, or necessary, starting with tax year 2019.

Frequently Asked Questions

How do I mark the box Full-Year Coverage, on the 1040?

This box is not marked by default. To mark the box, open the HCscreen, located on the Health Care tab. At the top, select the option YES - EVERYBODY... under ​Required health coverage information.

If a taxpayer has Medicaid, should I check the box on line 61 or would I need to include Form 8965?

According to the Form 8965 Instructions, many Medicaid plans are considered Minimum Essential Coverage (MEC). Check the box that everyone had either full year coverage, or an exemption on the HC screen.

When I complete the health care screens indicating full year coverage, and select Dependent of another on screen 1, the full year coverage box remains checked. IRS instructions say it should not be checked.

Do not complete the health care screens when you select Dependent of another on screen 1; they are not necessary. Leaving the health care screens blank in a return with sufficient income may produce EF message 5049, but selecting Dependent of another clears the error.

What information is available regarding the Affordable Care Act (ACA) from the Department of Labor (DOL)?

The Department of Labor (DOL) provides information on its website regarding the Affordable Care Act (ACA) and its implementation, regulations, and guidance,

This website also provides links to FAQs and related sources, workshops, seminars, studies, and surveys.

How do I generate a report showing those who have to repay some or all of their Advanced Premium Tax Credit?

To generate a report showing returns that contain a Premium Tax Credit Repayment, do the following:

  1. Go to Reports > Report Manager > Client Reports > Client Contact > Contact list (individual).

  2. Click Edit Report.

  3. Change the Report Title, for example, 1040 with PTC Repayment.

  4. Locate and add the column ACA PTC Repayment to the selected report columns list.

  5. Add other columns, if needed.

  6. Click Next.

  7. Click Edit Filters.

  8. Click Add Condition.

  9. Click Copy on the filter changes pop-up window.

  10. Enter a Filter Name (for example, PTC).

  11. Click OK.

  12. On the Filter Condition Editor window:

    • Choose Keyword name as ACA PTC Repayment.

    • Choose Comparison: is at least.

    • Enter Value: 1 (or whatever amount is needed).

    • Click OK.

  13. Then click Save.

  14. Click Save again.

  15. Click View Report and Continue through the search conditions.

  16. The report can be printed or exported to Excel.