What you need to know
The Affordable Care Act (ACA) requires all Americans to have health care coverage and to provide proof of coverage when filing their taxes. PayPal is required to provide you (and the IRS) with an annual form called Form 1095. This form is proof of the medical plan coverage you’ve been offered and enrolled in during the previous benefit plan year. Use the information from the Form 1095 when filing your tax return, similar to how you take information from your W-2 form and transfer it to your tax forms.
When to expect the form
PayPal's 1095-C form will be mailed to your home address on file by January 31, 2023. If you have set your preference to receive electronic notifications, PayPal’s Form 1095-C is available now on Your Benefits Resources (YBR). Select the Medical Tax Form 1095 tile. If you selected email delivery the subject line will read: IMPORTANT 2022 TAX RETURN DOCUMENT AVAILABLE. If you do not receive the form in the mail, you can view, download and print from YBR. The Kaiser HMO plan will also mail by January 31.
Keep all forms
You may receive more than one Form 1095 for plan year 2022. It is important to keep all the forms you receive with your tax information to enable you or your tax accountant to have all documentation required for ACA. Reasons for multiple 1095 forms include:
- You worked for more than one employer in 2022
- You or a covered dependent became eligible for COBRA during the year
- You were covered under an insured HMO during the year (Kaiser HMO plan). You will receive a form 1095-B from the insurer and a 1095-C from PayPal.
Wait to prepare a tax return?
In most cases, you do not need to wait for the Form 1095-C to file your US individual income tax return. Most employees will know whether they had health coverage for a month and can simply check a box on their tax return to attest that they, their spouse (if filing jointly), and any eligible dependents had “minimum essential coverage” throughout the year. The Form 1095-C confirms when coverage was in effect and who was covered. It’s also your proof of health coverage in the event you are contacted by the IRS.
More information about the 1095-C?
- You can find more information on the IRS website
- PayPal’s Form 1095-C, contact YBR:
- Online, by using the YBR Contact Us chat and email feature
- Over the phone, by calling YBR Customer Service at 844-474-6641
- YBR representatives are available from 5 a.m.–6 p.m. PT Monday through Friday
- Kaiser HMO plan Form 1095-B, contact the carrier directly
- How to report proof of health insurance coverage to the IRS, you should consult with your personal tax advisor
Verify Social Security numbers
Verify the SSN accuracy for any dependents enrolled under your PayPal medical plan coverage. Without accurate SSNs, the IRS may not receive sufficient proof of healthcare coverage. As a result, you may be contacted by the IRS and asked to provide additional documentation or be required to pay the “shared responsibility” tax imposed on individuals who do not have the mandated healthcare coverage.
Dependent SSNs can be verified in YBR. From the YBR landing page, if one of your dependent’s SSN is missing, you’ll see an alert displayed as an Action Needed. You can also call YBR customer service at 844-474-6641 to update your dependent’s SSN or for assistance if your dependent does not have an SSN.
This can be done at any time.