Form 1095-B Explained: A Guide for Australians with US Health Coverage

If you’re an Australian with US income, investments, or family ties, you may have heard of Form 1095-B. While it’s a US tax form, it can have real implications for Australians who spend time in the States, work for US companies, or have dual citizenship. Here’s what you need to know about this form, especially as 2025 brings new compliance tweaks and reporting timelines.

What Is Form 1095-B and Who Receives It?

Form 1095-B is issued by health insurance providers in the United States to document proof of minimum essential health coverage. The form is a product of the Affordable Care Act (ACA), which required most Americans to have health insurance or pay a penalty. Although the federal penalty was dropped in 2019, the form remains in use for state-level requirements and IRS reporting.

• Who gets it? Anyone who had health coverage through an employer, insurance company, or government program like Medicaid or Medicare in the US may receive this form.

• Why does it matter to Australians? If you spent part of the year working, studying, or living in the US, or if you’re a dual citizen, you might receive a 1095-B. It’s used to verify your insurance status when filing a US tax return.

• Australian expats and remote workers with US-based health insurance may need to keep this form for their tax records, even if they file taxes primarily in Australia.

Key Changes and Deadlines for 2025

Several updates are in place for the 2025 tax year:

• Extended Deadlines: The IRS has maintained the extended deadline for insurers to send 1095-B forms to recipients, typically by March 1, 2025 (since February 28 falls on a weekend).

• Electronic Filing Expansion: More providers must now file 1095-B forms electronically with the IRS if they issue 10 or more forms, down from the previous 250-form threshold. This means forms may be available sooner via online portals.

• State Mandates: Some US states, including California and New Jersey, still require proof of health coverage, and failing to report can trigger state tax penalties. Australians residing in those states should take note.

For Australians, this means:

• If you receive a 1095-B, keep it with your tax records for both the US and Australia, especially if you have cross-border tax obligations.

• Check your US state’s rules if you’re a dual resident or spent significant time in a state with a health coverage mandate.

Practical Scenarios: When Australians Encounter Form 1095-B

Let’s look at some real-world examples:

• Dual Citizens: Jane, an Australian-American, lived in California for four months in 2024 and had health insurance through a US employer. She’ll receive a 1095-B and must report this on her California tax return to avoid penalties.

• Remote Workers: Alex, an Australian working remotely for a US tech firm, is enrolled in a US health plan. He receives a 1095-B and, while not needing to file a US federal tax return, should keep the form in case of future residency or state-level requirements.

• Australian Students: Emily spent a semester at a US university and was covered by a university-sponsored health plan. She’ll get a 1095-B, which may be needed for visa or scholarship reporting.

In all these cases, the 1095-B acts as proof of coverage and may intersect with other financial documentation, especially for those navigating international tax systems.

What Should You Do With Your 1095-B?

Even though the US federal government no longer penalises uninsured individuals, the 1095-B remains an important document. Here’s how to handle it:

• Review it for accuracy: Ensure your name, dates of coverage, and policy information are correct.

• Keep it in your records: Retain it for at least three years, as the IRS or state tax agencies may request proof of health coverage.

• Consult your tax agent if you have US tax ties: For complex situations, particularly if you’re juggling Australian and US tax rules, a cross-border tax expert can help ensure you’re compliant in both jurisdictions.

Failure to report coverage in states with mandates, or to retain proper records, can result in tax complications down the line—even for Australians living primarily outside the US.