How to File 1095-B with the IRS for Health Coverage?

Deciphering ACA coverage reports may be confusing. In this easy-to-follow blog, we’ll tell you how to file 1095-B accurately and everything else you need to know about this ACA form.

What Is Form 1095-B?

Form 1095-B reports minimum essential coverage (MEC) under the Affordable Care Act (ACA), which the payer provides to individuals and their families in a year. Basically, this form tells the IRS which individuals had qualifying health coverage for all or part of the year.

Who must file 1095-B?

• Insurance carriers handling fully insured small group or individual plans.

• Small self-insured employers that are not ALE or Applicable Large Employer (Employers with less than 50 full-time equivalents (FTEs)).

• Government programs like Medicaid, CHIP, and VA health coverage.

• Certain church plans, acting as coverage providers.

Form 1095-B Pre-Filing Checklist

Here’s a quick 1095-B pre-filing checklist to get organized before you start your e-filing process.

• Collect and verify all the required data including legal names, SSNs/TINs, DOBs (if no SSN), and exact months that MEC was applicable to each person.

• Keep accurate TINs and DOBs to avoid paying any penalties. Always keep solicitation proof for reasonable cause defenses under IRS regulations.

• Secure the data by using encrypted files, use SFTP/API, and follow HIPAA plus IRS Pub 1075 for PII protection.

• If filing 10 or more total information returns, you must e-file. Paper filing is only allowed if filing fewer than 10 total returns.

Instructions for Filling Form 1095-B

Part I – Responsible Individual (Lines 1-8)

Enter the Name, SSN/TIN, DOB, address of the primary covered person.

Part II – Information About Certain Employer-Sponsored Coverage (Lines 10-15)

Enter the employer’s name, EIN, and address.

Part III – Issuer or Other Coverage Provider (Lines 16-22)

Enter the coverage provider’s name, EIN, mailing address, and telephone number for inquiries.

Part IV – Covered Individuals (Lines 23-28)

List every covered individual. Check ‘Covered all 12 months’. If there is no SSN/TIN, you must enter DOB.

Electronic formatting requirements: If you’re filing electronically through AIR, the system requires XML format. Tax1099 automatically converts your CSV uploads or API data into the correct schema format.

Note: If you leave both SSN and DOB fields blank for any covered individual, the AIR system will reject your submission. You should also truncate SSNs on recipient copies.

Important ACA Form 1095-B Deadlines

Do not forget Form 1095-B e-file deadline and other important due dates for seamless filing.

What Happens If You File Late?

The IRS is a stickler for rules and deadlines. If you don’t obey, you may attract the standard Form 1095-B penalties for payers.

If you’re filing for hundreds of covered individuals, the penalties can add up quickly. That’s why it’s important not to miss due dates.

For tax year 2025 filings, the penalty starts from $60 per return (up to 30 days late), $130 (31 days late through August 1), and $340 (After August 1 or not filed). The penalty could increase to $680 per return for intentional disregard.

ACA Form 1095-B State Filing

If you have covered individuals in California, Washington DC, Massachusetts, New Jersey, or Rhode Island, you’ll need to file state forms in addition to the federal ones.

Note: Tax1099 supports combined federal and state submission so you can handle both federal and state forms in one place!

How to File 1095-B Using Tax1099

Here’s a simple step-by-step guide to file ACA Form 1095-B with Tax1099.

Step 1 – Sign in or set up your Tax1099 account. Select “Tax Year 2025” and Form 1095-B from the ACA form section.

Step 2 – Upload your data via:

• Manual entry by using the on-screen entry wizard.

• Bulk upload by downloading and populating the CSV template. Drag-and-drop the file to upload.

• Integrate Tax1099 directly into your system for seamless data transfer.

Step 3 – Validate the uploaded data using our real-time TIN/SSN match feature.

Step 4 – Transmit Form 1095-B directly to the IRS AIR system via Tax1099. Get real-time status updates.

Step 5 – Collect recipient consent and send copies through a secure portal or USPS. Keep copies for at least four years.

Note: If your filing is rejected, don’t panic. Tax1099 lets you correct and resubmit rejected filings for free.

How to Fix Common Errors with Tax1099

Real-Life Examples

Sometimes, the best way to understand 1095-B filing requirements 2025 is to look at real-world scenarios.

Health Insurance Company covers 2,000 policyholders in California

The insurance carrier must file Form 1095-B for each policyholder and file California Form 3895C.

Landscaping company (LLC) with 20 employees that self-funds MEWA plan.

They must file one 1095-B per covered individual.

State health department administers Medicaid coverage for 1 million residents

The State Health Department must issue 1 million 1095-B forms.

XYZ Corp offers self-insured health coverage until June, then terminates the plan

The payer must file 1095-B showing MEC January–June.

Carrier A merges into Carrier B on September 1.

The payer must file a separate 1095-B to report the coverage period.

FAQs

1. Do I need to file 1095-B if only COBRA coverage existed?

Yes. COBRA qualifies as MEC. The entity providing COBRA must file 1095-B.

2. Can I deliver forms electronically without a wet signature?

Yes. Digital checkbox consent is valid.

3. How many times should I try before using their DOB instead of SSN?

You get two attempts: initial request and a second request by December 31 of the following year.

4. How do I correct a TIN after “Accepted with Errors”?

File a corrected 1095-B before the 60-day notice window ends.

5. Does the foreign-address rule affect my filings?

The AIR system rejects unrecognized country codes. Use ISO-3166-alpha-2 codes.

Are you ready to ace your 1095-B filing? Tax1099 can streamline your process, so that you can stay ahead of deadlines and avoid penalties!

Start filing now