Home › Massachusetts Individual Mandate Form 1099-HC Informative Guide
What Is Massachusetts Form 1099-HC?
Form 1099-HC is used by health insurance carriers (including MassHealth, Commonwealth Care, or Commonwealth Care Bridge), to provide proof of health insurance coverage for Massachusetts residents. Every Massachusetts resident should receive Form 1099-HC if they are eligible for MEC (Minimum Creditable Coverage).
Does The Form 1099-HC Format Change From Year To Year?
It depends, the insurance provider may change the 1099-HC form given to recipients from year to year. This inconsistency is due to the rules itself, according to the Massachusetts Department of Revenue rules, "There is no standardized format for the Form MA 1099-HC. It may vary depending on the carrier. However, the information fields must be consistent and must convey the information that the taxpayer needs to transcribe over to the Schedule HC."
Is Form 1095-B Different Than Form MA 1099-HC?
Yes, these forms are different than one another. Form 1095-B is an IRS federal form to report health insurance. While Massachusetts Form 1099-HC is used for state taxes. Residents will receive form 1099-HC from their health insurance carrier. Both forms report coverage for months of the reporting year, however, each form has its own criteria for how coverage for the month is determined.
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Is Form 1099-HC In The Combined Federal State Program?
No, Form 1099-HC is not the Combined Federal State Program (CFSF). While the form does start with the 1099 prefix, this is a Massachusetts specific form. Therefore, it does not follow the same reporting requirements as a federal 1099-NEC form to participate in the CFSF program.
How To Determine Coverage Months For Form 1099-HC?
To qualify for minimal creditable coverage (MCC) for a month, the subscriber must be covered for 15 days or more. If the subscriber is covered for less than 15 days of the month, they do not qualify for MCC for that month. The months where the subscriber was enrolled in non-MCC-compliant coverage should be left blank.
What Information Is Reported On Form 1099-HC?
At first glance, the form itself looks straightforward and simple and that's because it is. Recipients of this form will find the first two boxes are the information of their health insurance provider and the remaining boxes are directed toward themselves. Subscribers can find their name, full address, date of birth, insurance subscriber number, coverage months, and a list of their dependents.
Will The IRS Forward My ACA Data To Massachusetts?
No, the IRS will not forward data from ACA forms 1095B/C to the state of Massachusetts. While they both report health insurance coverage they do not report the same direct one-to-one mapping box information. Insurance carriers must register with MassTaxConnect to submit their data to the Massachusetts Department of Revenue.
When Is The Deadline For Form 1099-HC?
The e-file and recipient deadline is January 31st of the current tax year.
Are There Penalties For Failing To Issue Form 1099-HC?
Yes, the state of Massachusetts will fine a carrier, employer, or another sponsor of employment-sponsored health plans who is obligated to issue Form MA 1099-HC. The penalty amount is $50 per individual you failed to issue the form to, up to a maximum of $50,000.
Should The Subscriber's Dependents Receive A 1099-HC?
The insurance requirements are to send a copy of Form 1099-HC to the primary subscriber only. This includes subscribers who did not meet minimal creditable coverage (MCC). Insurance carriers can send separate forms to dependents if they choose, however, this is not required. Subscribers do not have to receive a physical copy of the form 1099-HC if they consent to receiving an electronic copy it will meet the recipient delivery requirements.
Does Massachusetts Accept Paper Forms For 1099-HC?
No, Massachusetts does not accept mailed-in paper forms. Form 1099-HC must be efiled no matter how many forms are being submitted. This form does not follow the same rules for reporting other 1099s to the Department of Revenue.
What If A Subscriber Left And Came Back In The Same Year?
Determining the subscriber's coverage months would still work the same. A subscriber can have multiple date ranges for example, they were covered at the start of the year till March. The subscriber would be covered from January 1st through March 12th. Then the subscriber came back in July till the end of the year. Now add the subscriber coverage dates from July 18th through December 31st.
To determine the months the subscriber has MCC coverage look at the coverage date ranges. The subscriber had coverage for the months of January and February, but not March since they were not covered for more than 15 days. Then all the months until August are left blank. Lastly, the remaining months of the year would show coverage. Repeat this process for each subscriber and their dependents.
What If The Insurance Provider Is Not Located In Massachusetts?
The insurance provider will be required to send Form 1099-HC to only residents who reside inside the state of Massachusetts. If insurance providers provide them with 1099-HCs and verify coverage reports with Massachusetts, providers won't have to follow up with employees.
Can BoomTax File Form 1099-HC To Massachusetts?
Yes, we can! BoomTax can e-file Form 1099-HC directly to the state of Massachusetts on behalf of insurance carriers or 1099 administrators.
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BoomTax and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors prior to engaging in any transaction.
