HCTT-2016-80: The Health Care Law & Your Taxes: Not Too Early to Determine if You Qualify for Exemption
Internal Revenue Service (IRS) sent this bulletin at 12/14/2016 02:52 PM EST
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Issue Number: HCTT-2016-80Inside This IssueThe Health Care Law & Your Taxes: Not Too Early to Determine if You Qualify for Exemption With the 2017 tax filing season approaching, it’s not too early to think about how the health care law affects your taxes. The Affordable Care Act requires you and each member of your family to do at least one of the following:
If you meet certain criteria for the tax year, you may be exempt from the requirement to have minimum essential coverage. You will not have to make a shared responsibility payment for any month that you are exempt. Instead, you'll file Form 8965, Health Coverage Exemptions, with your federal income tax return. For any month that you do not qualify for a coverage exemption, you will need to have minimum essential coverage or make a shared responsibility payment. You may be exempt if you meet one of the following:
The Federally-facilitated Marketplace is no longer granting exemptions for members of a health care sharing ministry, members of Indian Tribes, and incarceration. Eligible individuals can still claim these exemptions on a tax return. For a full list of exemptions and how to claim them, see our Individual Shared Responsibility Provision – Exemptions: Claiming or Reporting page on IRS.gov/aca. Find out if you’re eligible for a coverage exemption or must make a payment by using our interactive tool, Am I eligible for a coverage exemption or required to make an Individual Shared Responsibility Payment?. Federal tax returns that do not reflect at least one of these options – reporting health care coverage, claiming a coverage exemption or reporting a shared responsibility payment - will be rejected if the return is filed electronically. If filed on paper,tax returns that do not reflect at least one of these options will take longer to process and any refunds will be delayed.You should respond promptly to IRS correspondence about your health care coverage. Thank you for subscribing to IRS Tax Tips, an IRS e-mail service. For more information on federal taxes please visit IRS.gov. This message was distributed automatically from the IRS Tax Tips mailing list. Please Do Not Reply To This Message. |