What is the qualifying offer method in 1094-C?
306 views | Last modified 11/9/2023 4:56:21 AM EST | Added by TaxBandits Team

Applicable To
94X 1099 W-2 ACA W-4

The Applicable Large Employer (ALE) Member is eligible to use the Qualifying method when they have provided a Qualifying Offer to its full-time employees for all months in the year. The healthcare coverage is said to be a Qualifying Offer when it meets the following criteria:

  • The coverage provides Minimum Value (MV).
  • For employee-only coverage, the employee cost/contribution for each month is not more than 9.5% of the mainland single Federal Poverty Line (FPL) 
  • Coverage is provided to the employee’s spouse and dependents.

If you’re an ALE member and qualified to report under Qualifying Offer, you need to select the “A. Qualifying Offer Method” checkbox in Form 1094-C, Line 22. By selecting this option, you are certifying that the criteria above are met.

If you are filing more than one 1094-Cs, choose any one 1094-C as an Authoritative Transmittal and select the checkbox “A”. If you are filing only one 1094-C, you can select the relevant checkbox in it.

Keep in mind that you cannot submit 1094-C alone. It should be filed with the 1095-Cs. If you want to e-file your 1095-C, TaxBandits is here to help you. We support the e-filing of ACA forms, including 1095-C, 1094-C, 1095-B, and 1094-B

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