The IRS Released Finalized ACA Reporting Forms 1095-B/C for the 2024 Tax Year
The finalized ACA 1095 forms for 2024 have arrived! These forms are essential for health coverage providers and employers to meet federal compliance requirements. Whether you’re a provider of minimum essential coverage or an Applicable Large Employer (ALE), these forms streamline your reporting duties.
In this post, we’ll dive into the key details of ACA forms for the 2024 tax year. Let’s get started!
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)—to fulfill Section 6055 reporting requirements.
- Forms 1094-C and 1095-C are intended for ALEs to report under Section 6056. ALEs can also use these forms with self-insured plans for combined reporting under Sections 6055 and 6056.
What’s New for the 2024 Tax Year?
There are no significant changes in the forms or instructions for 2024 reporting. However, certain other changes have been made, including penalties for failing to report the ACA returns, affordability, and ACA penalty rates for the 2024 tax year.
2024 Information Reporting Penalties
The 1095-C instructions emphasize that all ALEs and employers with self-funded group health plans must follow the information reporting requirements. If they don’t comply, they could face penalties for not filing accurate information returns or for not furnishing correct statements to payees. However, the penalties may be waived if the failure was due to reasonable cause and not willful neglect.
For the 2024 tax year, the following penalties apply:
| Failure to file a correct information return can result in a penalty of $330/incorrect return (maximum penalty of $3,987,000 / year). Failure to provide a correct payee statement can result in a penalty of $330/incorrect statement (maximum penalty of $3,987,000/year). |
Special case: The instructions of Form 1095-B for 2024 clarify that the penalties for failing to file correct information returns are reduced for small businesses with average gross receipts of $5 million or less. Additionally, the instructions state that the penalty per return increases to $660, with no annual maximum limit, in cases of intentional disregard of the requirements to file the returns and provide recipient statements.
ACA Affordability Percentage Update
The ACA affordability percentage plays a key role in assessing whether an employer’s health plan is affordable under the Affordable Care Act. For the 2024 tax year, this percentage has been reduced from 9.12% to 8.39%.
Penalty Rates Under Section 4980H
The ACA includes penalties for Applicable Large Employers (ALEs) who do not provide affordable health insurance to their full-time employees. Here are the updated penalty rates for the 2024 tax year:
- Section 4980H(a) penalty: The penalty under this section is $2,970 for 2024, up from $2,880 in 2023.
- Section 4980H(b) penalty: The penalty under this section is $4,460 for 2024, an increase from $4,320 in 2023.
Key ACA Reporting Deadlines for the 2024 Tax Year
The deadline to file Form ACA 1095 forms for the 2024 tax year is as follows:
- Electronic filing: March 31, 2025
- Recipient copy distribution: March 03, 2025
- Paper filing: February 28, 2025
Streamlined ACA Reporting with TaxBandits!
TaxBandits, an IRS-authorized e-file service provider, offers a comprehensive, user-friendly platform designed to simplify the ACA reporting process for businesses. Our user-friendly interface and exclusive features, such as real-time error checks and data validation, enable you to securely e-file 1095-C, 1095-B forms with the IRS. This helps you stay compliant with ACA regulations while saving time and effort.
Trust TaxBandits to streamline your ACA reporting for the 2024 tax year – Stay tuned for more updates.
In the meantime, if your organization is seeking a full-service solution for ACA reporting that offers code generation and dedicated account management, we invite you to check out our sister product, ACAwise. Their team is now accepting clients for the 2024 tax year!
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