When filing your income tax return, the ACA law requires individuals to have health care coverage, qualify for a health coverage exemption, or make an Individual Shared Responsibility Payment. To report your health coverage on your tax return, you will simply check a box on your tax return.
You may qualify for an exemption if you don’t have health care coverage and meet certain criteria. When you file your tax return, most exemptions can be claimed, but some must be claimed through the health insurance Marketplace.
If you are exempt from health insurance coverage when filing your tax return, you will complete Form 8965. Form 8965 is used to report a coverage exemption granted by the Marketplace, or to claim a coverage exemption on your tax return. However, if you are not required to file a tax return, you do not need to file a return just for the purpose of reporting your coverage or to claim an exemption.
For any months an individual does not have health insurance coverage or qualify for an exemption, the individual must make an Individual Shared Responsibility Payment. If you do not qualify for an exemption and were able to afford health care for you or any dependents but chose not to get it, you will have to make a payment. See more information on how the health care tax penalty could cost you.
For more healthcare and tax updates, please visit our ACA resource page.