What you need to know about the Affordable Care Act when it comes to your taxes this year.
Most people must have health coverage or pay a fee (also known as “the penalty,” the “individual shared responsibility payment,” or the “individual mandate”). You must have minimum essential coverage or pay a fee. This is true regardless of your employment status. Under some circumstances, you won’t have to make the payment. This is called an “exemption.” There are several exemptions from the fee that may apply to people who have no income or very low incomes. If you have an exemption, you don’t need to pay the fee for being uncovered. Learn about exemptions from the fee.
Exemptions from the payment
You may qualify for an exemption from the penalty for not being insured if:
- You’re uninsured for less than 3 months of the year
- The lowest-priced coverage available to you would cost more than 8% of your household income
- You don’t have to file a tax return because your income is too low (Learn about the filing limit (PDF)
- You’re a member of a federally recognized tribe or eligible for services through an Indian Health Services provider
- You’re a member of a recognized health care sharing ministry
- You’re a member of a recognized religious sect with religious objections to insurance, including Social Security and Medicare
- You’re incarcerated (either detained or jailed), and not being held pending disposition of charges
- You’re not lawfully present in the U.S.
- You qualify for a hardship exemption
More answers
If you have any concerns about the ACA and your specific situation, feel free to contact our office to get answers to your questions.
Sources: US Department of Health and Human Services at https://www.healthcare.gov/fees-exemptions/exemptions-from-the-fee/