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2025 Tax Year Changes For ACA Forms 1095-B and 1095-C
The IRS Issued a Final Version of 2025 Tax Year ACA Forms 1095-B and 1095-C
- Updated November 18, 2025 - 8.00 AM by Admin, ACAwiseThe IRS issued a Final Form 1095-B/1095-C for 2026 ACA reporting.
So, before initiating the process of your ACA Reporting for 2026, you must be aware of the changes in the deadline and the penalty.
What's new in 2025 Tax Year ACA 1095-B/C?
The final versions of 1095-B and 1095-C released by the IRS don't reflect any notable changes from the existing versions. No additions or updates have been made to the existing set of 1095 codes.
However, there are important updates to deadlines, penalties, and the affordability rate, as outlined below.
1. Revised Deadline for Recipient Copy Distribution
According to the updated IRS instructions, certain ALE Members may furnish recipient copies by January 31 or within 30 days of the individual’s request—whichever is later.
This revised deadline applies to eligible ALE Members that offer self-insured coverage and meet the requirements of Reg. §1.6055-1(g), allowing them to use the alternative method of furnishing statements instead of automatically sending Forms 1095-C or 1095-B to non–full-time employees and nonemployees.
Under this method, the employer must post a clear and easily accessible notice on its website informing individuals that they may request a copy of their statement.
Learn more about ACA deadlines.
2. Updated ICHRA Affordability Percentage:
The IRS has adjusted the ACA affordability percentage for the 2025 tax year to 9.02%, based on the federal poverty line percentage.
3. Revised Penalty rates:
There are some notable changes in the ACA penalty rates:
- Under Section 4980H(a) – the penalty rate is $2,900 for the tax year 2025.
- Under Section 4980H(b) – the penalty rate is $4,350 for the tax year 2025.
Learn more about ACA Penalties.
Choose ACAwise to Simplify your ACA Reporting in 2026
If you’re looking to comply with the 2026 ACA reporting requirements, contact our ACAwise experts. We have years of experience in handling the ACA Reporting process accurately and securely.
We offer customized services based on your reporting needs to maintain IRS and State compliance. We also offer a solution for TIN Matching, printing, and mailing your recipient copies as well.
Know more about our services.
A Quick Guide for Employers
ACAwise has created a free guide to help applicable large employers to know the ACA Reporting Requirements better.