Drake Software blog for tax pros, covering tax, IRS news, and more

ACA Basics – Fee Exemptions for Not Having Coverage

Under some Circumstances, you won’t have to make the payment

Most people must have health coverage or pay a fee (also known as “the penalty,” the “individual shared responsibility payment,” or the “individual mandate”). Under some circumstances, you won’t have to make the payment. This is called an “exemption.”

Exemptions from the payment

You may qualify for an exemption from the penalty for not being insured if:

  • You’re uninsured for less than 3 months of the year
  • The lowest-priced coverage available to you would cost more than 8% of your household income
  • You don’t have to file a tax return because your income is too low (Learn about the filing limit (PDF)
  • You’re a member of a federally recognized tribe or eligible for services through an Indian Health Services provider
  • You’re a member of a recognized health care sharing ministry
  • You’re a member of a recognized religious sect with religious objections to insurance, including Social Security and Medicare
  • You’re incarcerated (either detained or jailed), and not being held pending disposition of charges
  • You’re not lawfully present in the U.S.
  • You qualify for a hardship exemption
  • If I’m unemployed, do I have to pay the fee for not having coverage?

More answers

Like other Americans, you must have minimum essential coverage or pay a fee. This is true regardless of your employment status.

There are several exemptions from the fee that may apply to people who have no income or very low incomes. If you have an exemption, you don’t need to pay the fee for being uncovered. Learn about exemptions from the fee.

 

###

 

Source: US Department of Health and Human Services at https://www.healthcare.gov/fees-exemptions/exemptions-from-the-fee/

admin taxing_subjects

The Taxing Subjects staff is proud to cover the latest in tax-industry-related news, from tax law and IRS updates to technology and business strategies. If you have questions about an article or just want to reach out to the Taxing Subjects staff, email comments@taxingsubjects.com.

comments powered by Disqus