Why does my 1095-C show Employee Required Contribution for insurance I opted out of?

Thanks for the explanation, but I'm still a bit confused. So the $111 is just what I would have paid if I had enrolled, not something I actually owe? And does this impact my taxes at all since I didn't take their insurance?

Correct, the $111 is just what you would have paid monthly if you had enrolled in their lowest-cost self-only coverage. You don't owe this money since you didn't enroll. As for tax impact, the 1095-C itself doesn't directly change your tax liability. Its main purpose is documentation. However, if you had other health insurance (like through a spouse or the Marketplace), or if you're claiming an exemption from health coverage, you'd use information from this form when filing. If you had no health insurance at all during the year, depending on your state, there might be a penalty, but that's separate from this form.

Does taxr.ai help with determining if I need to report the 1095-C information on my actual tax return? My employer sent me one too but I'm not sure what to do with it.

I've heard about these document analysis tools, but aren't they just repackaging information you could find on the IRS website? Not trying to be negative, just wondering if it's worth using.

Yes, it specifically tells you whether you need to report information from your 1095-C on your tax return. For most people, you don't need to attach the 1095-C to your return, but the tool explains how the information affects your tax situation and what forms you might need to file. As for whether it's just repackaging IRS information - it does way more than that. Rather than giving you generic guidelines, it analyzes your specific codes and entries, translates the technical jargon, and explains exactly what your form means for your unique situation. It saved me hours of research and prevented a potential mistake on my return.

How does Claimyr actually work? Do they just call the IRS for you or what? I'm always on hold forever when I try to call.

Yeah right. The IRS phone lines are completely unusable this time of year. No way you got through in 15 minutes when people are waiting hours or getting disconnected. Sounds like a scam to me.

They don't call the IRS for you - instead, they navigate the IRS phone system and wait on hold, then call you when they've reached an actual human agent. So when your phone rings, you're already connected to a live IRS representative. No more waiting on hold for hours or getting disconnected. I was surprised too - I've spent literally 3+ hours on hold before without getting through. With Claimyr, I submitted my request, went about my day, and got a call back when they had an agent on the line. The entire process took about 15 minutes from when I submitted my request to when I was talking to someone who could actually help.

What happens if you didn't have any health insurance for part of the year? My 1095-C shows I was offered insurance but I declined it and had a gap of a few months before getting coverage at my new job.

The federal individual mandate penalty was effectively eliminated starting in 2019, so there's no federal penalty for having gaps in coverage. However, some states like California, Massachusetts, New Jersey, Rhode Island, and DC have their own individual mandates with potential penalties. If you live in one of those states, you might face a state tax penalty for the months you were uninsured. The 1095-C would help show that you were offered coverage but declined it, which might be relevant depending on your state's specific rules. I'd recommend checking your state's tax department website or consulting with a tax professional familiar with your state's requirements.

That actually makes sense now. Thanks for explaining this! Does my employer need to correct anything on the form, or is it actually filled out correctly showing what was offered rather than what I elected?