Affordable Care Act

Affordable Care Act

Affordable Care Act Provisions

Changes to the Patient Protection and Affordable Care Act Provisions for 2020

Individual Information Returns

Starting early in 2021, you may receive one or more forms relating to the health care coverage you had or were offered during the previous year. Similar to Forms W-2 and 1099, which include information about the income you received, these health care forms provide information that you may need when you file your individual income tax return. Also, like Forms W-2 and 1099, these forms will be provided to the IRS by the entity that provides the form to you. The forms are:

●  Form 1095-A, Health Insurance Marketplace Statement.  The Health Insurance Marketplace (Marketplace) sends this form to individuals who enrolled in coverage there, with information about the coverage, who was covered, and when. This form was also provided in early 2021 for 2020. If you are expecting to receive a Form 1095-A, you should wait to file your 2020 income tax return until you receive that form.

Employer Mandate

The employer mandate (which requires large employers to cover full-time workers) started in 2019 for businesses with more than 100 full-time equivalent employees. In 2020, the employer mandate went into effect for employers with between 50-100 full-time equivalent employees.

Small Business Health Options Program and Tax Credits

Small businesses with 50 or fewer full-time equivalent employees (FTEs) are able to use the Small Business Health Options Program (SHOP) to get coverage and apply for health insurance tax credits. Even if your business didn't qualify for tax credits, you could still use SHOP if you meet the FTE requirement. For more details, visit to find your state's SHOP portal. Also see Form 8941, Credit for Small Employer Health Insurance Premiums.