Every tax season, the same question comes up: “Do I need my 1095 form to file my taxes?”

Short answer: usually, no. And this year, many employees may not even receive one automatically — by design.

Here’s a simple breakdown of what this means for both employees and employers.

What Employees Need to Know

You typically don’t need a Form 1095-B or 1095-C to file your federal taxes.

For most employees, Forms 1095-B and 1095-C are not required to file a federal tax return. They’re generally just for your records — unlike a W-2. Even major tax-filing platforms, like TurboTax, confirm these forms typically aren’t needed for federal filing.

Because of this, the IRS permanently extended the deadline for employers to provide these forms. They’re no longer due by January 31 and this year’s deadline falls on March 2, though the deadline can shift slightly from year to year.

You may also notice many employers have stopped automatically mailing your Form 1095-B or 1095-C. That’s intentional. Under the Paperwork Burden Reduction Act (PBRA), employers can now provide these forms upon request instead. You can still ask for a copy for your records — but don’t let it slow down your tax filing.

When a 1095 Might Matter

State Tax Filing: If you were enrolled in employer-sponsored health coverage and live in a state with an individual healthcare mandate (CA, NJ, RI, or D.C.), then your Form 1095-B or 1095-C may be helpful for state tax filing. Massachusetts also has an individual mandate, but uses its own unique tax form (MA 1099-HC).

ACA Marketplace Coverage: One important exception is Form 1095-A. If you enrolled in individual coverage through an ACA Marketplace, you’ll typically receive a Form 1095-A, which may be needed for your taxes — especially if you received premium tax credits (for more details, visit healthcare.gov).

If you participated in an Individual Coverage Health Reimbursement Arrangement (ICHRA) through your employer, then you may receive Form 1095-B or 1095-C from your employer in addition to your Form 1095-A from the ACA Marketplace, but generally only Form 1095-A is needed for tax filing purposes.

To Summarize

Most employees can file without a Form 1095-B or 1095-C — but if you had ACA Marketplace coverage, Form 1095-A is the one to watch for.

What Employers Need to Know

Less paper, lower costs, and more flexibility (if you do it right)

The Paperwork Burden Reduction Act gives employers new flexibility in how they distribute Forms 1095-B and 1095-C. Instead of sending forms to everyone, employers can use an alternative furnishing method, providing the forms only upon request — as long as IRS requirements are met.

To use this approach, employers must:

• Post a clear, accessible notice on your website by March 2
• Explain how to request forms with options by mail, email, and phone
• Provide requested forms to employees within 30 days
• Keep the notice posted through at least October 15

For many employers, this change offers welcome relief to those who have historically mailed Forms 1095-B/1095-C to every employee — even though most employees don’t use them.

If your employees don’t live in one of the states with individual healthcare mandates (CA, RI, NJ, or D.C.), this new approach can reduce unnecessary effort — but only if it’s handled carefully. With clear communication and careful attention to the IRS requirements, you can avoid employee confusion, reduce compliance risks, save on costs, and streamline year-end processes.

The Big Takeaways

• Employees: You usually don’t need a Form 1095-B or 1095-C to file federal taxes
• Employers: You have more flexibility than ever — but communication and compliance go hand in hand

How Decisely Helps

We offer a full suite of Compliance Services, including ACA reporting and compliance monitoring. With year-round oversight from our in-house compliance experts, Decisely helps you manage all ACA federal and state requirements, including annual Forms 1094/1095-B and 1094/1095-C reporting and filing.

Get in touch today to learn more about how we can help you reduce risk, cut unnecessary work, and make ACA reporting far less painful — for both employers and employees.

Obligatory fine print (we promise this is the only boring part!)
This article is for general informational purposes only and is not intended to provide legal or tax advice. ACA and tax rules can vary by situation, so employers and individuals should consult with their legal, tax, or compliance advisors regarding their specific obligations.