1095c Line 18 code 1F - Help

[Crank]

That is the only item on the 1095c and its in the entire year box.  No months of coverage are checked.  TP earned $28,457, paid no premiums and the employer paid $1085 (box 12 code DD) for the coverage.  How do I interpret this?

1F reads minimum essential coverage not providing minimum value offered to you.

Does it mean that the TP is subject to ACA penalty for the whole year?

[Crank]

I believe I figured it out ACA penalty of 363 for the year from the shared responsibility worksheet

[jklcpa]

I think you mean that "1F" is in box 14?  The employer's insurance isn't MEC, so the employee is out of luck as far as avoiding the penalty. The employee had the choice to accept the employer's non-MEC policy, or to purchase one meeting the MEC directly with an insurance co or on the exchange.  Based on the income, that penalty sounds about right.  You should see if he meets one of the exceptions to the SRP, possibly that the premiums for a MEC policy are unaffordable, but if the person is younger and has low premiums, it may not come up as unafforable in the calculations.

[Crank]

Thank you!