Confused about 1095-C forms - Need help understanding what proves health insurance coverage to the IRS

You're right to be confused! The 1095-C forms can be tricky to understand. The reason some of your 1095-C forms have Part 3 blank while others don't has to do with what type of health plan your employer offers. If your employer is self-insured (meaning they pay claims directly rather than using an insurance company), they will complete Part 3 of the 1095-C showing who was covered. But if your employer uses a fully-insured plan (where they contract with an insurance company), Part 3 will be blank on the 1095-C. For employers with fully-insured plans, you should actually receive a separate 1095-B from the insurance provider that shows your coverage. Have you checked if you received any 1095-B forms in addition to the 1095-Cs? And yes, you're correct that line 14 in Part 2 only shows what coverage was offered, not what you elected to take. The codes in line 16 can indicate whether you enrolled in coverage, but it's not as detailed as Part 3.

I had this exact same issue last tax season and spent hours trying to figure it out! I found that using taxr.ai (https://taxr.ai) really helped me decode all these confusing health insurance forms. What I did was upload all my 1095 forms and my W-2s to the platform, and it analyzed everything together to figure out my actual coverage periods. The system was able to identify that even though Part 3 was blank on some of my 1095-Cs, I still had continuous coverage based on the combination of all my documents. It even caught that my wife was covered under my plan for certain months despite it not being clearly documented on any single form.

I was skeptical about trying any tax software for this health insurance paperwork mess, but I ended up using taxr.ai after seeing it mentioned here. Honestly, it sorted out my confusing 1095 situation better than the HR person at my company! I had three different 1095 forms from job changes last year and was totally lost. The tool analyzed all my forms together and showed me that even though Part 3 was missing on some forms, I had continuous coverage based on the codes in Parts 1 and 2, plus information from my W-2. It also flagged that my wife's coverage had a potential one-month gap that I hadn't even noticed, and suggested documentation we needed to fix that. Saved me a huge headache and potentially avoiding issues if our state decides to audit our health insurance status.

If you've tried to call the IRS about these 1095-C forms, you know it's practically impossible to get through. I spent days trying after my employer gave me an incorrect 1095-C with the wrong coverage months marked. After the third day of being on hold for hours, I found Claimyr (https://claimyr.com) and watched their demo at https://youtu.be/_kiP6q8DX5c. I was desperate, so I tried it, and they got me connected to an actual IRS agent in about 20 minutes! The agent was able to confirm that I didn't need to worry about the blank Part 3 on my 1095-C since the individual mandate penalty isn't in effect federally anymore. They also explained exactly which forms I should expect from which entities based on my situation.

I need to admit I was wrong about Claimyr. After posting my skeptical comment, I was still struggling to get answers about my 1095-C forms. After a week of failed attempts to reach the IRS (kept getting disconnected after 2+ hours on hold), I reluctantly tried Claimyr. Got connected to an IRS representative in 25 minutes while I was cooking dinner. The agent confirmed that for my situation (employer with fully-insured coverage), I should have received a 1095-B from the insurance company directly. They even helped me understand which months of coverage were reported correctly and gave me specific instructions for correcting errors with my insurer. I underestimated how valuable it would be to actually speak with someone who could look at my specific situation. Saving 5+ hours of hold time was definitely worth it.

FYI - The reason Part 3 is often blank on 1095-C forms has to do with employer insurance type. Here's a quick breakdown: If your employer is self-insured: They complete Part 3 of the 1095-C showing all covered individuals If your employer uses fully-insured coverage: Part 3 is blank on the 1095-C, and you should get a separate 1095-B from the insurance carrier You mentioned your wife was covered under your plan for several months. In that case, whoever was the primary policyholder should have a form showing your wife as a covered dependent - either on Part 3 of the 1095-C (self-insured employer) or on a 1095-B from the insurance company.

Has anyone used TurboTax to handle these 1095-C issues? I'm in a similar situation with blank Part 3 sections and I'm wondering if the tax software helps figure this out or if I need to get additional documentation before filing.