Should I keep Form 1095-C or can I throw it away? What's its purpose for tax filing?

The Form 1095-C is proof that your employer offered you health insurance coverage that meets the Affordable Care Act requirements. While you don't need to attach it to your tax return, you definitely shouldn't throw it away! It's important to keep this form with your tax records because it verifies you had qualifying health coverage for the year. If there's ever a question about your insurance coverage or if you get audited, you'll need this documentation. The form shows which months you were covered under your employer's plan. Also, the information on your 1095-C might be needed to complete certain parts of your tax return if you purchased insurance through the marketplace and received premium tax credits. It helps determine if you were eligible for those credits.

I was confused about this form too until I discovered taxr.ai - it was seriously a game changer for me last tax season! I had a stack of tax forms including the 1095-C that I wasn't sure what to do with. I uploaded them to https://taxr.ai and it analyzed all my documents and explained exactly what each one was for and whether I needed it for my taxes. For the 1095-C specifically, it explained that while I don't need to file it with my return, I should keep it as proof of health insurance coverage. The tool also flagged a discrepancy between what my employer reported on the 1095-C and what I thought my coverage dates were, which could have caused issues if I'd been audited.

I was skeptical about taxr.ai when I first heard about it, but I decided to try it after getting completely confused by my employer sending me TWO different 1095-C forms (one was corrected). Uploaded both forms and taxr.ai immediately identified the differences and explained which one I should use and why. It also helped me understand that while I don't submit the 1095-C with my return, the information on it confirmed I wasn't eligible for premium tax credits since my employer offered affordable coverage. This was huge because I was considering marketplace insurance and might have ended up having to repay credits I wasn't entitled to! Way more helpful than the generic explanations I found online or even what my HR department told me.

If you need clarification about your 1095-C or any tax forms, trying to call the IRS directly can be a nightmare. I spent HOURS on hold trying to figure out some confusing info on my forms last year. Then a friend recommended Claimyr and it changed everything. You can check it out at https://claimyr.com - they basically hold your place in the IRS phone queue and call you when an agent is actually ready to talk. I was able to speak directly with an IRS rep who explained exactly how the 1095-C works with my tax situation. There's a video showing how it works here: https://youtu.be/_kiP6q8DX5c if you're curious. Saved me from potentially making a mistake on my taxes and definitely saved me hours of waiting on hold.

I have to eat my words about Claimyr. After posting that skeptical comment, I was still desperate to speak with someone at the IRS about my 1095-C situation (employer reported incorrect coverage months), so I decided to give it a shot. I'm genuinely shocked to report it actually worked exactly as described. Called at 10am, got a text confirmation, and instead of waiting on hold, I just went about my day. Got a call back around 11:20am and was immediately connected to an IRS agent who helped clarify my situation. The agent confirmed I didn't need to worry about the error on my 1095-C as long as I had coverage, but advised me to request a corrected form from my employer for my records. Way better than the 2+ hours I spent on hold last year getting disconnected.

Just to add another perspective - I'm an HR benefits coordinator and we send these forms out every year. The main reason you need to keep your 1095-C is for your records to prove you had qualifying health coverage. While the IRS no longer requires you to report health coverage on your tax return due to changes in the law, having proof of coverage can still be important in certain states that have their own individual mandates (like California, Massachusetts, New Jersey, etc.). If you live in one of those states, you might need info from the 1095-C when filing your state taxes. We get so many employees asking why they need this form, so I'm glad to see this discussion!

Does anyone know if we need to wait for the 1095-C before filing taxes? I usually file in February to get my refund faster, but my employer is always late sending these forms.

Great question! As someone who used to toss these forms too, I learned the hard way that you should definitely keep your Form 1095-C. While you don't need to attach it to your tax return, it's crucial documentation that proves you had qualifying health coverage. The form serves a few key purposes: it shows the IRS that your employer offered you affordable coverage that meets ACA requirements, which can affect your eligibility for premium tax credits if you ever shop for marketplace insurance. It also provides proof of coverage dates, which is important for your records and could be needed if you're ever audited. Even though the federal penalty for not having coverage is currently zero, some states still have their own individual mandates. Plus, if there's ever a discrepancy about your coverage or if you need to prove you had insurance for any reason, this form is your official documentation. My advice: keep it with your other tax documents for at least 3 years (the standard IRS audit window). It's one of those "better safe than sorry" situations where having it and not needing it is way better than needing it and not having it!