3940

Health Insurance & Your Taxes 101

Penalties & Exemptions
  • Under the ACA, individuals and businesses may face a tax penalty for not having health insurance.
  • Businesses with 100 or more full-time employees during the 2015 tax year or 50 or more full-time employees during the 2016 tax year are required to offer health insurance coverage or face a tax penalty.
  • Depending on your circumstance, you may be able to qualify for a coverage exemption from the penalty. Take a look below at all of the acceptable exemptions and how you apply for them:
CLAIMED DIRECTLY ON THE TAX RETURN
NO ECN REQUIRED
REQUIRES AN EXEMPTION CODE (ECN)
FROM THE MARKETPLACE
APPLICATIONS MUST BE MAILED
Insurance is unaffordable (>8.05% of household income) Members of a religious sect with religious objections to health insurance coverage
Uninsured no more than 2 consecutive months
Certain noncitizens and U.S. citizens living abroad, or not lawfully present Most Hardships
Individual resides in a state that did not expand Medicaid and income <138% FPL

Duration:
Generally, at least one month before and after hardship

When to Apply:
Up to 3 years after the month of hardship

ENTER ECN ON FORM 8965, PART 1

No filing requirement - income too low
Member of a recognized health care sharing ministry
Incarceration
Member of a federally-recognized tribe or eligible for services through an Indian Health Services Provider
Aggregate self-only coverage is considered unaffordable
Member of a recognized religious sect
Member of tax household was born, adopted, or died in 2015
Tax Credits

Persons who enroll in a Marketplace plan may receive a Premium Tax Credit, also known as a tax subsidy, which are available to individuals and businesses to lower the cost of having insurance. This credit must be reconciled on your tax return.

FAQ & Glossary

Still have questions? Need some clarification? Our ACA advisers have you covered.

Important ACA Dates & Deadlines
  • November 1, 2015: Open Enrollment starts for coverage in 2016
  • December 17, 2015: Last date to enroll for coverage to start January 1, 2016
  • December 31, 2015: Coverage ends for all 2015 Marketplace plans
  • January 1, 2016: Coverage for 2016 can begin
  • January 31, 2016: Open Enrollment for coverage in 2016 ends
  • April 18, 2016: Last day to file taxes or apply for a 6-month filing extension

 

 .Send A Friend