Since the Affordable Care Act was passed, healthcare and taxes have intersected. Our tax experts understand how the law affects your household. Because taking care of you and your family is our business, our professionals will guide you every step of the way to make sure you have the correct information to complete your tax return.

The passing of the Affordable Care Act created an intersection between health care and taxes. The ACA is a tax law that requires all Americans to have health insurance or a coverage exemption. The law requires health plans to meet minimum criteria and allows individuals to acquire health insurance even with a preexisting condition.

All tax filers must report their health coverage on their tax return. Those who do not have health insurance coverage will pay a tax penalty if they do not qualify for a coverage exemption. The penalty will be enforced by the IRS.

Penalties & Exemptions

  • Under the ACA, individuals and businesses may face a tax penalty for not having health insurance.

  • Businesses with 50 or more full-time employees during the 2016 tax year are required to offer health insurance coverage or face a tax penalty.

CLAIMED DIRECTLY ON THE TAX RETURN
NO ECN REQUIREDREQUIRES AN EXEMPTION CODE (ECN)

Insurance is unaffordable (>8.13% of household income)

Uninsured no more than 2 consecutive months

Certain noncitizens and U.S. citizens living abroad, or not lawfully present

Individual resides in a state that did not expand Medicaid and income <138% FPL

No filing requirement - income too low

Member of a recognized health care sharing ministry

Incarceration

Member of a federally-recognized tribe or eligible for services through an Indian Health Services Provider

Aggregate self-only coverage is considered unaffordable

Member of a recognized religious sect

Member of tax household was born, adopted, or died in 2016

REQUIRES AN EXEMPTION CODE (ECN) FROM THE MARKETPLACE
APPLICATIONS MUST BE MAILED

Members of a religious sect with religious objections to health insurance coverage

Most Hardships

Duration: Generally, at least one month before and after hardship

When to Apply: Up to 3 years after the month of hardship

ENTER ECN ON FORM 8965, PART 1

AFFORDABLE CARE ACT & TAXES