What To Know About the Form 1095

If you’re like me, you might have spent some time wondering about the Form 1095.  You know, the one that DFAS will start dropping into our MyPay accounts by the end of January.  Don’t know what I’m talking about?  Let me fill you in.

What is the Form 1095?

Let’s start with what the Form 1095 is.  Basically, Form 1095 is the form that contains information you need to tell the government that your health insurance meets the minimum standards set forth in the Affordable Care Act, also referred to as Obamacare.  DFAS will issue one of two types of Form 1095.

  • Form 1095-B:  This is for military retirees and annuitants.  This form will contain the information that you need to report on your tax return that you and your dependents had qualifying health coverage (also known as minimum essential coverage) for some or all of the tax year.  People who do not have minimum essential coverage & do not qualify for an exemption may be liable for the individual shared responsibility payment for the months that you did not have coverage.
  • Form 1095-C:  This is for military personnel & civilian employees, and includes information about health insurance coverage offered by your employer.  Form 1095-C, Part II, includes information about coverage that your employer offered to you, your spouse, and your dependents.

What To Expect During Tax Season?

You will receive a Form 1095 for each of the healthcare plans you’re enrolled in.  This includes Tricare, the Federal Employee Health Benefits plan, VA, and other plans provided by the government or purchase by you or your family.  Each Form 1095 will contain information that has already been provided to the IRS, but which will also go into your individual federal income tax return.  You should be able to receive your Form 1095 through MyPay, just as you do your LES and W-2 information.

What Do I Do With My Form 1095?

For most military members who keep their family information updated in Defense Enrollment Eligibility Reporting System (DEERS), this shouldn’t be an issue.  You’ll receive a 1095-C that indicates your family was covered under an eligible health care plan.  However, for people who are transitioning, it is especially important to:

  • Ensure that your dependents are updated in DEERS
  • Ensure that DFAS has your updated address & contact information
  • Ensure you understand the minimum essential coverage requirements.  If you’re retiring, TRICARE for Retirees will meet these requirements.  However, if you’re getting out of the military, you need to either check with your prospective employer on their medical plans, or spend some time investigating on your own.  A good place for transitioning veterans to look into such a plan is Healthcare.gov.

If you liked this article, please feel free to subscribe so you can receive more articles as they are published.  Also, feel free to join the Military in Transition Facebook Group!  In the meanwhile, take charge of your life!

About Forrest Baumhover

I'm a career naval officer, and a fee-only financial planner. Half-way through my career, I discovered that I had a passion for financial planning, and have pursued this as my second career. My specialty is working with military professionals who are looking to separate or retire from the service, and who feel they need some professional guidance to make sure they're on track.
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