H&W: Affordable Care Act and Your 2016 Income Tax Filing

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Professional Musicians, Local 47 and Employers’ Health & Welfare Fund

Proof of Enrollment in a Health Plan

H&WAs the end of the year approaches and you prepare to enjoy the holidays with your family and friends, employers and participants should also be aware of the tax filings which are required. With these considerations in mind, the IRS has provided you with a gift, Notice 2016-70. Notice 2016-70, notified Participants that the IRS has extended the due date for health care providers, and employers, to provide covered persons the required tax forms.

Participants and their dependents enrolled in one of the Fund’s medical plans (Blue Shield or Kaiser) will be provided a form 1095-B, directly from the carrier. This form indicates the months during the year 2016 that you were enrolled in health coverage. IRS Notice 2016-70 requires that Participants be notified, with their tax documents, by March 2, 2017. Had this change not been made, Participants would have received the 1095 form by Jan. 31, 2017. In either situation, it will not impact Participants’ ability to file their tax returns. You must retain your form 1095-B with your tax documents; however, you are not required to file it with the IRS when you submit your tax return.

Insurance carriers must transmit this information to the IRS for participants and dependents in the Plan using a form 1094-B. Employers and insurance providers did not receive a gift. If an employer or insurance provider files a paper copy of form 1094, these forms must be mailed by Feb. 28, 2017. Electronic submissions of form 1094 must be filed by March 31, 2017.

Though the 2016 election results may not provide a clear answer as to what health insurance reporting requirements may be in 2018, it is clear that for 2017 they will remain governed by the ACA. This means that you will still need your 1095 to certify that you had insurance coverage. You should retain a copy of this form with your 2016 tax returns, in case you are audited and must prove that you were covered.

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