The IRS Releases Final Version of 2021 ACA Form 1095-B and 1095-C

Key Changes:
The IRS has added 2 new codes on ACA Form 1095-C for meeting the mandated ICHRA reporting requirements.

The IRS Issued a Final Version of 2021 ACA Forms 1095-B and 1095-C

- Updated November 2, 2021 - 8.00 AM - Admin, ACAwise

At the end of October, the IRS released a final version of 1095-C & 1095-B.

These instructions are a helpful guide for mandatory ACA reporters who will need to incorporate these changes in their 2022 ACA reporting.

Last year, the IRS mandated the reporting of ICHRA Coverage on Form 1095-C by adding the new codes and lines.

Now, the IRS has released the final version of Form 1095-C for 2021. The major change is the addition of two new codes on Line 14 to increase the efficiency of completing the mandated ICHRA Reporting.

However, there are no changes in the 2021 Form 1095-B.

Key Changes to ACA Form 1095-C

1. Extension in furnishing 1095-C employee copies

The IRS released proposed regulations that would permanently extend the Form 1095-B/C recipient copy deadline by 30 days (i.e,. For the 2021 tax year, the furnishing deadline will be extended from January 31, 2022, to March 02, 2022).

2. Two new codes added in Form 1095-C

The IRS added the values for the two previously reserved codes in Code Series 1, used on line 14. Form 1095-C has been updated so that an ALE can report the ICHRA coverage that is offered to an employee.

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CodesDescription
1T

It represents the Individual coverage HRA offered to the employee and spouse (no dependents) and affordability was determined using the employee's primary residence location ZIP code.

1U

It represents the Individual coverage HRA offered to the employee and spouse (no dependents) and affordability was determined using employee's primary employment site ZIP code affordability safe harbor.

If you are new to ICHRA Reporting, Click here to learn more about the ICHRA and 1 Series codes to report the ICHRA coverage.

We generate ACA Forms with ICHRA Codes and e-file them to the IRS. Send your requirements to support@acawise.com or contact us at (704)-954-8420.

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