The ACA law requires you and each member in your household to have minimum essential coverage, qualify for an insurance exemption, or make an individual shared responsibility payment (ISRP) for the time without health care coverage when you file your federal tax return.

Individuals who qualify for an Insurance Exemption are not required to pay the ISRP. ISRP payment will be required for any period of time not able to be exempt from insurance coverage.

When you are ready to file your tax return, you can claim most exemptions. However, for certain exemptions, you must apply through the Marketplace.

You may be exempt if:

  • Your annual premiums are more than 8.05% of your household income.
  • You have a gap in health care coverage that is less than 3 consecutive months.
  • You have had a hardship that may stop you from obtaining coverage, or belong to a group that is exempt from the ACA requirement.

Claiming an exemption on your tax return

To claim or report any Health Coverage Exemption, Form 8965, the Health Coverage Exemptions form, will need to be completed and submitted together with Form 1040, Form 1040A, or Form 1040EZ. All of these forms can be filed electronically. 

You are automatically eligible for an exemption if your total household income is below the tax filing threshold. You are not required to file a tax return to claim this exemption. You are also not required to make an individual shared responsibility payment. If you choose to file a tax return, use Part II on Form 8965 to claim this exemption.

To find a Liberty Tax ACA Advisor at your local Liberty Tax office, call 800-673-8600 or visit