ACA Forms › Understanding Form 1095-C Codes: A Guide for Lines 14 and 16
At a Glance
This guide explains Form 1095-C Lines 14, 15, 16, and 17 in detail. Learn how to use Series 1 codes (offer of coverage), employee contribution amounts, Series 2 codes (safe harbor and relief), and ICHRA ZIP code requirements. Correctly completing these lines helps avoid IRS penalties.
It's common for employers to find deciphering and completing lines 14-16 of Form 1095-C codes challenging. Incorrectly reported codes on Form 1095-C can lead to significant penalties for employers.
We have compiled a user-friendly guide to assist employers in navigating Line 14 & 16 Codes, thereby avoiding such pitfalls.
A Closer Look at Form 1095-C Part II
What is Form 1095-C?
Form 1095-C is an information return filed by employers with at least 50 full-time + full-time equivalent employees. These employers are known as 'Applicable Large Employers' or ALEs by the IRS. This form tells the IRS if the employer met ACA guidelines for the healthcare coverage they offer, and it requires that employees receive a recipient copy.
Applicable Large Employers
at least 50 full-time + full-time equivalent employees for all EINs added together that share a common owner
Learn more about what Form 1095-C is for Tax Year 2025.
We also recommend checking out the IRS.gov ACA FAQ, which contains many common 1095-C questions in an easy-to-understand format.
Understanding Line 14 of Form 1095-C: Offer of Coverage
In Line 14, employers are expected to use the applicable Series 1 codes (1A-1U) to describe the kind of health insurance offered to an employee, their spouse, and dependents.
If an employee qualifies for health benefits during any month of the year, then Line 14 should be populated for each month, even when an employee is not employed.
Series 1 Codes (Line 14)
These codes provide information about the health coverage offered by the employer, including whether it was a qualifying offer and whether coverage was offered to the employee's spouse and dependents.
Includes codes: (1A, 1B, 1C, 1D, 1E, 1F, 1G, 1H, 1I, 1J, 1K, 1L, 1M, 1N, 1O, 1P, 1Q, 1R, 1S, 1T, 1U)
Read more about 1095-C Codes.
These codes provide information about the health coverage offered by the employer, including whether it was a qualifying offer and whether coverage was offered to the employee's spouse and dependents.
Includes codes: (1A, 1B, 1C, 1D, 1E, 1F, 1G, 1H, 1I, 1J, 1K, 1L, 1M, 1N, 1O, 1P, 1Q, 1R, 1S, 1T, 1U)
Read more about 1095-C Codes.
Series 1 Code Definitions
| Code | Definition |
|---|---|
1A |
Qualifying Offer |
1B |
Minimum Essential Coverage (MEC) providing Minimum Value (MV) offered to Employee (EE) only Spouses and dependents excluded from offer |
1C |
Spouse excluded from offer MEC providing MV offered to EE and at least MEC offered to dependents (not spouse) |
1D |
Dependents excluded from offer MEC providing MV offered to EE and at least MEC offered to spouse (not dependents) |
1E |
MEC providing MV offered to EE and at least MEC offered to dependents and spouse |
1F |
MEC not providing MV offered to EE; or EE, spouse, and/or dependents |
1G |
Self-insured coverage offered to a non-employee individual or a non-Full-Time Employee for any month of the year |
1H |
No offer of coverage |
1J |
Conditional Offer |
1K |
Conditional Offer |
For broken-down examples of ACA Code Series 1 on Form 1095-C, download our PDF Code Series 1 Guidance.
ICHRA Code Definitions
| Code | Definition |
|---|---|
1L |
ICHRA offered to Employee (EE) only Affordability is determined by using EE's primary residence location ZIP code |
1M |
ICHRA offered to EE and dependents (not spouse) Affordability is determined by using EE's primary residence location ZIP code |
1N |
ICHRA offered to EE, spouse, and dependents Affordability is determined by using EE's primary residence location ZIP code |
1O |
ICHRA offered to EEs only Using the EE's primary employment site ZIP code affordability safe harbor |
1P |
ICHRA offered to EE and dependents (not spouse) Using the EE's primary employment site ZIP code affordability safe harbor |
1Q |
ICHRA offered to EE, spouse, and dependents Using the EE's primary employment site ZIP code affordability safe harbor. |
1R |
ICHRA that is NOT affordable offered to EE; EE and spouse, and/or dependents |
1S |
ICHRA offered to an individual who was not an FTE |
1T |
ICHRA offered to EE and spouse (not dependents) Affordability is determined using EE's primary residence location ZIP code |
1U |
ICHRA offered to EE and spouse (not dependents) Using EE's primary employment site ZIP code affordability safe harbor |
For broken-down examples of ACA IRCHA Codes on Form 1095-C, download our PDF Code IRCHA Series Guidance.
Breaking Down Line 15 of Form 1095-C: Employee Required Contribution
On Line 15, employers are required to report the employee's monthly contribution amount.
The amount reported may not reflect the actual cost of the medical plan the employee enrolled in but instead should show the required contribution amount for the lowest-cost, self-only plan offered by the employee.
Line 15 should only be completed when certain codes were entered in line 14. If applicable, enter the Employee Required Contribution amount for the corresponding boxes in which codes 1B, 1C, 1D, 1E, 1J, 1K, 1L, 1M, 1N, 1O, 1P, 1Q, 1T, or 1U were entered on line 14.
Line 16 Codes - Section 4980H Safe Harbor Codes and Other Relief for ALE Members
The codes on Line 16 provide the IRS with further details regarding the employment and coverage status of the employee if the employer met certain affordability safe harbors and other information.
Series 2 Codes (Line 16)
Provide additional details about the employee's employment status, such as whether the employee was not employed or was not full-time during certain months,
whether the employee was enrolled in coverage, or whether the employer is eligible for transition relief.
Includes codes: (2A, 2B, 2C, 2D, 2E, 2F, 2G, 2H, 2I)
Read more about ACA Codes.
Includes codes: (2A, 2B, 2C, 2D, 2E, 2F, 2G, 2H, 2I)
Read more about ACA Codes.
Series 2 Code Definitions
| Code | Definition |
|---|---|
2A |
The employer did not employ this person for any day during the calendar month |
2B |
The employee was not full-time for this month |
2C |
The employee enrolled in the offered coverage |
2D |
The employee was in an LNAP for the month |
2E |
The employer is eligible for the multi-employer interim relief rule |
2F |
The coverage is affordable based on the Form W-2 safe harbor |
2G |
The coverage is affordable based on the FPL safe harbor |
2H |
The coverage is affordable based on the Rate of Pay safe harbor |
For broken-down examples of ACA Code Series 2 on Form 1095-C, download our PDF Code Series 2 Guidance.
Understanding Line 17 - ZIP Code
Line 17 was introduced by the IRS when ICHRA codes were added. Employers are required to enter the ZIP code for any employees offered an ICHRA plan.
The ZIP code entered is contingent on the code used. These codes specify whether the affordability of the coverage was based on the employee's primary residence or work location.
Use the ZIP code of the employee's residence if the following codes were used in line 14:
1L
1M
1N
1T
Use the ZIP code of the employee's primary site of employment if the following codes were used in line 14:
1O
1P
1Q
1U
1095-C Instructions to learn more about 1095-C filing requirements.
Looking for a downloadable copy of ACA Codes? Make sure to download our PDF copy of Form 1095-C Code Guidance.
How Do You File ACA Forms Online?
Generally, ACA filing is handled by self-filing or by using an ACA Software provider:
- Simple format for data import (like Excel)
- Can often use your payroll files directly
- No testing, TCC, or IRS account required
- Can help with questions/coding
Self-Filing
- Format requires custom software development
- Filing system can be slow and unreliable
- Requires testing, TCC, and personal info
- Errors and issues reported can be cryptic
Learn more about filing ACA Forms online.
Can I submit ACA 1095 Forms with BoomTax?
BoomTax will streamline your ACA filing process in 3 simple steps!
Import Your Data
You can import your data as Excel, XML, or use files from popular payroll providers like QuickBooks, UKG, ADP, and many more.
Step-By-Step Wizard
We walk you through the process with no complicated jargon. You can also live chat with a real person as you work on your filing for hands-on help.
E-File & Mail Employee Copies
Once your data is loaded, you can e-file and distribute employee copies in minutes.
Author
Michaela Porterfield
Content Writer at BoomTax
View all posts
Dedicated to simplifying complex IRS regulations for employers, with expertise in ACA, 1099, and W-2 compliance.
Takes Only 30 Seconds
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.
