Massachusetts Form MA 1099-HC Reporting Requirements for the 2023 Tax Year -A Complete Guide
Understanding the Form MA 1099-HC reporting requirements is essential to ensure compliance with the Massachusetts Individual Mandate
Since 2006, the Massachusetts Health Reform Law (The Individual Mandate) has required Massachusetts residents over the age of 18 to acquire Minimum Creditable Coverage (MCC).
MCC refers to the minimum level of insurance benefits each resident must have as defined by the State of Massachusetts under the state individual mandate law. Taxpayers not meeting these health insurance requirements will be penalized on their state tax return.
Unlike the other states with individual state mandates for ACA filing (California, Rhode Island, New Jersey, and the District of Columbia), Massachusetts requires employers and health care providers to use a separate ACA Form, i.e., MA 1099-HC, to meet state ACA compliance.
Read through this blog to understand MA 1099-HC Reporting Requirements.
Massachusetts Form MA 1099-HC Reporting Requirements
Filing Form MA 1099-HC with the State of Massachusetts is mandatory because it provides proof of health insurance coverage for Massachusetts residents. It’s important to note that Form MA 1099-HC is offered by the Health Insurance carrier, not the Group Insurance Commission (GIC).
Let’s look into the employer’s responsibility for Massachusetts’ individual mandate.
According to this mandate, Employers who offer Minimum Creditable Coverage (MCC) to Massachusetts residents must furnish health coverage documents to the state indicating that they meet their compliance with MCC. Additionally, copies must be sent to employees (residents of Massachusetts) so they can complete their tax filings.
Changes in Residency
Changes in residency will have more significant impacts on Form MA 1099-HC filing. Here are the conditions for residents, nonresidents, and retirees abroad regarding the change in residency for healthcare mandate requirements.
Moving into Massachusetts- The health care mandate applies from the first day of the third full month after becoming a Massachusetts resident.
Moved out of Massachusetts- The health care mandate applies until the last day of the full month of residency.
Retired Massachusetts residents who are now living abroad having full health insurance in the country they live in — Must complete Schedule HC. They can do so in the following ways.
- Applying for a Certificate of Exemption from the Commonwealth Health Insurance Connector Authority.
- Requesting an appeal on Schedule HC.
Living out of the state (nonresidents of Massachusetts)- Not subject to healthcare mandate if filing an income tax return in the new state of residence.
Information reported on the e-filing of Form MA 1099-HC
The information required to file the MA 1099-HC form is almost similar to the details required to file Form 1095-C or Form 1095-B. The employer requires the following information to submit MA 1099-HC forms with the State of Massachusetts (MA):
- Name and Federal Index Number (FID) of the insurance company or administrator.
- Basic details about the subscriber like Subscriber Name, Subscriber number, Date of Birth (DOB), and Address.
- The coverage period during which the subscriber and their dependents were offered the MCC.
- If the employee was covered for the entire year (12 months), tick the corresponding box that indicates the same.
- If the employee was not covered for the whole year, tick the box against the months during which the Minimum Creditable Coverage (MCC) was offered.
Deadline and Penalties for MA 1099-HC Filing
For the 2023 tax year, the deadline to e-file and distribute copies of MA 1099-HC to employees is January 31, 2024.
The employer obligated to issue MA-1099 HC to the employees (Massachusetts residents) but fails to do so will be subjected to a penalty of $50 per individual, going up to the maximum penalty of $50,000.
How to file Form MA 1099-HC with Massachusetts?
The State of Massachusetts does not accept paper filing of Form MA 1099-HC. Therefore, employers are mandated to E-file Form MA 1099-HC with the Massachusetts Department of Revenue.
Meet Massachusetts Form MA 1099-HC Reporting with TaxBandits!
In order to navigate Massachusetts Form MA 1099-HC filing requirements efficiently, paying close attention to each detail is crucial. But what’s more important is choosing the right e-file provider to complete your MA 1099-HC filing, and here’s where TaxBandits comes in!
TaxBandits, as an IRS-authorized E-file service provider, takes care of the Form MA 1099-HC reporting for the employers. To ensure a smooth filing experience for Form MA 1099-HC, TaxBandits offers a range of features, including federal filing of 1095-B/C Forms and state filing and recipient copy delivery via postal mail or online before the deadline.
By getting started with TaxBandits today, employers and healthcare providers can make sure they remain ACA-compliant with the utmost ease and perfection!
