The IRS Officially Released Final Versions of Forms 1095-B/C for the 2024 Tax Year!
The finalized ACA 1095 forms for 2024 are here! These forms are crucial for health coverage providers and employers to comply with federal requirements. These forms simplify your reporting responsibilities if you’re a provider of minimum essential coverage or an Applicable Large Employer (ALE).
This post will cover the critical details of ACA forms for the 2024 tax year. Let’s dive in!
Final Versions of Form 1095-B and 1095-C – An Overview
The IRS has released the final versions of the 2024 forms required for reporting under Internal Revenue Code Sections 6055 and 6056.
- Forms 1094-B and 1095-B are designed for providers of minimum essential coverage, including self-insured plan sponsors that are not classified as Applicable Large Employers (ALEs). These forms fulfill the reporting requirements under Section 6055.
- Forms 1094-C and 1095-C are intended for ALEs to report under Section 6056. ALEs can also use these forms for self-insured plans, allowing for combined reporting under Sections 6055 and 6056.
What’s New for the 2024 Tax Year?
While there are no significant updates to the forms or instructions for ACA reporting in 2024, a few other changes to reporting requirements are worth noting. These include adjustments to penalties for not filing ACA returns, new affordability thresholds, and updated ACA penalty rates for the 2024 tax year.
2024 Information Reporting Penalties
According to the instructions for Form 1095-C, all ALEs and employers with self-funded group health plans must adhere to information reporting requirements. Non-compliance can result in penalties for filing incorrect information returns or failing to provide accurate statements to recipients. However, penalties may be waived if the failure was due to a reasonable cause and not due to willful neglect.
For the 2024 tax year, the penalties are as follows:
- Incorrect information return: A penalty of $330 per incorrect return, with a maximum of $3,987,000 per year.
- Incorrect payee statement: A penalty of $330 per incorrect statement, with a maximum of $3,987,000 per year.
Special Note: Penalties for incorrect information returns are reduced for small businesses with average gross receipts of $5 million or less. Additionally, if an employer intentionally disregards filing requirements, the penalty increases to $660 per return, with no cap on the annual total.
ACA Affordability Percentage for 2024
The ACA affordability threshold determines if an employer’s health plan is affordable under the ACA standards. For 2024, this percentage has been lowered from 9.12% to 8.39%.
Updated Penalty Rates Under Section 4980H
The ACA imposes penalties on ALEs that do not offer affordable health coverage to full-time employees. The updated penalty rates for 2024 are:
- Section 4980H(a): The penalty under this section is $2,970 for 2024, up from $2,880 in 2023.
- Section 4980H(b): The penalty under this section is $4,460 for 2024, an increase from $4,320 in 2023.
Critical ACA Reporting Deadlines for the 2024 Tax Year
The filing deadlines for ACA 1095 forms for the 2024 tax year are as follows:
- Electronic filing: March 31, 2025
- Recipient copy distribution: March 03, 2025
- Paper filing: February 28, 2025
Meet the 2024 Tax Year ACA Reporting with ACAwise!
Since the introduction of the Affordable Care Act (ACA), ACAwise has been a full-service ACA reporting solution for businesses striving to ensure compliance with IRS regulations. Our experienced team specializes in managing the complexities of filing Forms 1095-B and 1095-C with the IRS, adhering to state requirements, and ensuring timely distribution to employees and recipients.
We are here to help your businesses streamline the e-filing process for all ACA forms.
You can easily upload your data for streamlined reporting with both ACA Core and ACA Elite. You’ll also have access to additional services like TIN Matching, postal mailing, an online access portal for recipient copy distribution, and state e-filing.
Want to explore how ACAwise can further support your business? Contact us today to discuss your filing needs and reserve your place for the 2024 tax season!
