Form 1095-B Made Simple: A Practical Guide for Taxpayers Filing with Tax2efile

In today’s continually changing tax environment, filing taxes now involves more than simply submitting information at the last minute. Taxpayers need clarity, not uncertainty, given the numerous IRS forms, state-level regulations, and health coverage requirements. Form 1095-B is one such form that frequently causes confusion; while many people must file it, few completely comprehend it. Misunderstanding its intent could result in undue anxiety or errors when filing taxes.

This article explains what Form 1095-B is, who receives it, how it affects your tax return, and demonstrates how Tax2efile simplifies the process. After reading this explainer, we hope you will learn exactly how to complete Form 1095-B and file your taxes correctly, confidently, and stress-free.

What is Form 1095-B?

IRS Form 1095-B is known as the Health Coverage form, used to report whether an individual had minimum essential health coverage (MEC) during the tax year. It is a part of the Affordable Care Act (ACA) information requirement for payers and confirms the usage of insurance for at least one month of the tax year, in addition to any covered dependents.

Who Receives Form 1095-B?

This form is received by an individual either enrolled for a health insurance plan (private insurance carriers), or who are covered under a self-insured company (small employers), with your dependents covered under government programs like Medicaid. This usually reflects 12 months of coverage for each enrolled individual. If you don’t receive Form 1095-B, contact your insurance provider or employer, check mailed documents, or confirm whether 1095-A or 1095-C applies to you instead.

The Distinction Among Form 1095-B, Form 1095-A, and Form 1095-C

• If you signed up for a qualified health plan through the health insurance marketplace, you would receive Form 1095-A: Health Insurance Marketplace Statement.
• Health insurance providers send Form 1095-B to people for whom they offer minimum essential coverage, with details of when and who was covered by the health insurance policy.
• Your employer issues the Form 1095-C: Employer-Provided Health Insurance Offer and Coverage, if the employer has 50 or more employees.

Do You Need Form 1095-B to File Your Tax Return, and Why Is It Still Important?

In most cases, you do not need to attach Form 1095-B to your federal tax return. In accordance with state-level measures, a few states (such as California, New Jersey, and Rhode Island) may still have individual mandates that require the information from this form.

Although this form is for informational purposes, you should keep Form 1095-B with your tax records; it is required for filing state tax and helps to confirm coverage if the IRS requires any documentation later.

Deadlines, Penalties, and Common Mistakes for the 2026 Tax Season

Deadlines

For forms filed in 2026 reporting coverage from calendar year 2025, Form 1095-B is required to be filed by March 2, 2026 (for paper filing) and March 31, 2026 (for e-filing).

Filers will use Form 1094-B (transmittal) to submit Form 1095-B. To get a filing extension, file Form 8809 by the original due date for an automatic 30-day extension from the IRS.

Penalties

Filing incorrectly or not filing can lead to penalties depending on how late the tax is filed.

• If 30 days late, $60 is imposed as a penalty per form.
• If filed after 30 days or by August 1, $130 will be charged per form.
• For filings submitted after August 1, $330 will be charged per form.
• If you intentionally disregard the filing, the penalty is $660 per form.

Common Mistakes

Some common errors encountered while filing Form 1095-B include:

• Providing an incorrect Social Security Number (SSN), which can lead to rejection by the IRS.
• Ensure every family member is covered under your plan listed accurately in Part IV of the form.
• Not reporting coverage completely.
• Instead of bulk e-filing, paper filing for 10 or more forms.

Step-by-Step Instructions to File Form 1095-B

• Gather the required information, including the filer’s name, employee identification number (EIN), contact details, address, and total number of required 1095-B forms with the Form 1094-B transmittal form.
• Choose an IRS-authorized e-file provider like Tax2efile to ensure secure transmission and compliance with IRS standards.
• Log in to your e-file provider and select the appropriate Form 1095-B for the tax year. Tax2efile offers an intuitive dashboard to manage multiple forms effectively.
• Fill out the details in Part I with the name of the recipient, SSN or TIN, date of birth, and complete mailing address. This part identifies the organization responsible for providing health coverage.
• Part II covers the details of the covered individual, including name, SSN, and date of birth, for the IRS to verify that the individual enrolled in a qualifying health plan for at least one month during the tax year.
• The last section covers the details, including each month which must be marked accurately to reflect the individual’s actual coverage period in the minimum essential coverage plan.
• Tax2efile automatically checks for errors and validates the entered information.
• Tax2efile ensures filers receive recipient copies immediately after submission.

Scenario

Ken, a freelancer, had health insurance coverage for the entire year through a private insurer. In January, he received Form 1095-B confirming coverage for himself and his family. The form showed all 12 months of minimum essential coverage. While filing his taxes using Tax2efile, Ken did not upload or attach Form 1095-B; instead, he answered the health coverage questions. He simply kept it for the records and filed his return successfully without any issues. The point of this example is to show that Form 1095-B is informational only and does not need to be filed with a federal tax return. Ken faced no negative consequences because he followed the correct process—he confirmed his health coverage when prompted and kept Form 1095-B for his records.

Form 1095-B is more than just another tax document; it’s a confirmation of your health coverage and a reminder that tax filing doesn’t have to be complicated. By understanding what the form is—and just as importantly, what it isn’t—taxpayers can avoid unnecessary stress and focus on filing accurately. With Tax2efile, clarity replaces confusion, allowing you to file quickly, confidently, and correctly, while keeping your records organized and your peace of mind intact.