Form 1095-C for Australians: 2025 Guide & Key Changes

If you’re an Australian with US income or employment connections, you may have heard about Form 1095-C—especially as tax season approaches in 2025. While this form is a US requirement, it can affect Australians working for US companies or those with dual tax obligations. Here’s what you need to know about Form 1095-C, its 2025 updates, and how it might impact your tax situation.

What Is Form 1095-C and Who Receives It?

Form 1095-C is an IRS document provided by applicable large employers (ALEs) in the United States. It details employer-provided health insurance coverage, reporting whether you and your dependents were offered coverage and for which months. For Australians working in the US, on secondment, or employed by a US-based multinational, receiving this form is common.

• Who gets it? US employees of companies with 50 or more full-time staff, including some Australian expats or remote workers paid from the US.

• What does it show? Coverage details, employee share of monthly premiums, and employer identification.

For most Australians, this form is informational unless you’re required to file a US tax return. However, if you have dual tax residency or are navigating the US-Australia tax treaty, it’s wise to keep these forms on file.

Key Updates for 2025: Why It Matters Now

2025 brings some updates to the Form 1095-C process, mainly reflecting the evolving US health care landscape post-COVID and the continued impact of the Affordable Care Act (ACA). Here are the most relevant points:

• Filing Deadlines Extended: The IRS has maintained the extended deadline to furnish 1095-C forms to employees—March 4, 2025, for the 2024 tax year.

• Electronic Filing Threshold Lowered: Starting this year, employers with 10 or more returns must file electronically, increasing the likelihood that you’ll receive digital copies.

• ACA Compliance Remains: Although the individual mandate penalty is $0 federally, some US states (like California and New Jersey) still require proof of coverage. If you’ve lived or worked in these states, your 1095-C is essential.

For Australians who spent any time working in the US in 2024, pay close attention to your US tax reporting. Even if you’re back home, reporting requirements may linger, and the 1095-C provides evidence of employer-sponsored health insurance.

How Form 1095-C Impacts Australians: Real-World Scenarios

Let’s look at how Form 1095-C actually comes into play for Australians:

• Australian Expats Returning from the US: If you returned in 2024 and file a US tax return for part of the year, you’ll need your 1095-C to answer health coverage questions on your US return (Form 1040).

• Remote Workers for US Companies: Even if you’re living in Sydney but employed by a US firm, you might receive a 1095-C. Keep it for your records, even if it doesn’t affect your Australian tax.

• Dual Citizens or Green Card Holders: If you’re still considered a US tax resident, you must report global income and complete all health coverage disclosures. Your 1095-C is crucial for compliance.

It’s important to note that Form 1095-C is not submitted with your Australian tax return. But for those navigating both US and Australian systems, accurate record-keeping is essential to avoid double taxation and ensure proper treaty benefits.

Practical Tips for Managing Your 1095-C in 2025

• Check for Electronic Delivery: Many employers now issue 1095-Cs via secure employee portals or email. Watch your inbox or HR system notifications.

• Keep Copies: Store digital and paper copies with your tax records for at least three years, in case of audit or future queries.

• Coordinate with Your Accountant: If you’re using a cross-border tax specialist, share your 1095-C early to avoid filing delays.

• Review for Accuracy: Mistakes on your 1095-C (wrong coverage months, incorrect employer info) can cause IRS headaches. Contact your employer’s payroll or HR department for corrections.

Conclusion

Form 1095-C may seem like just another piece of tax paperwork, but for Australians with US ties, it plays a key role in cross-border compliance. With 2025’s updated deadlines and digital delivery, it’s more important than ever to stay organised and informed. Whether you’re an expat, a dual citizen, or just spent a few months working stateside, understanding your 1095-C helps ensure smooth tax filings on both sides of the Pacific.