Health Insurance & Your Taxes 101
- 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||
When to Apply:
ENTER ECN ON FORM 8965, PART 1
|No filing requirement - income too low|
|Member of a recognized health care sharing ministry|
|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|
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.
Still have questions? Need some clarification? Our ACA advisers have you covered.
- 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