Affordable Care Act Tax Exemptions

As of 2014, if you do not have health insurance coverage or have a gap in coverage, you will have to either pay an individual shared responsibility fee or file for an exemption when you file your taxes in 2015.

Wondering how to make the right choices for your health care tax provisions? Here are some basics to help you determine if you qualify for an Affordable Care Act tax exemption. According to the IRS, people who qualify include those who:

  • Do not have access to affordable coverage
  • Have a gap of less than three consecutive months without coverage
  • Qualify for one of several other exemptions, including:
    • having a hardship that prevents you from obtaining coverage, or
    • belonging to a group specifically exempt from the requirement

There is also a specific hardship exemption if you purchased insurance through the Marketplace during the initial enrollment period and then experienced a gap in coverage while waiting for your enrollment to be completed. You can read more about this here. To find out more on the Affordable Care Act tax exemptions, visit the IRS’ website.

Tax laws are continuously changing, so consider hiring a professional to help you. If you’re having trouble keeping up, don’t hesitate to contact Nakata Consulting.