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Affordable Care Act Tax Provisions for Individuals and Families


Tax Time and the Health Care Law: The individual shared responsibility provision requires you to have qualifying health insurance, a health coverage exemption, or make a payment when you file. If you, your spouse and dependents had health insurance coverage all year, indicate this by simply checking a box on your tax return. If you purchased coverage through the Marketplace, you may be eligible for the premium tax credit

If you did not have qualifying health coverage in 2014, find out if you are eligible for an exemption or if you must make a payment with your return through our ACA Interactive Tax Assistance tool.

Filing electronically is the easiest way to file a complete and accurate tax return. The
software guides you through the process. Electronic filing options include: free Volunteer Assistance, IRS Free File, commercial software, and professional assistance.


Reporting Coverage
  Claiming Coverage Exemptions

Most taxpayers already have qualifying health care coverage, and will simply check a box on their tax return.

This includes coverage from an employer, Health Insurance Marketplace coverage, and government-sponsored programs like Medicare, Medicaid, and CHIP. If you purchased coverage through the Marketplace, you will receive a Form 1095-A, which provides information about your coverage.


Some taxpayers are exempt from the requirement to have coverage. Most coverage exemptions can be claimed when you file your return. However, some exemptions must first be obtained from the Health Insurance Marketplace.

If you qualify, you will not have to make a shared responsibility payment.

Claiming and Reconciling Premium Tax Credit
  Making the Individual Shared Responsibility Payment

You can only claim this credit if you purchased health insurance through the Marketplace.

You must file a federal tax return if you received any advance payments of the premium tax credit to reconcile those payments.

You will use the information on Form 1095-A that is issued by your Marketplace to calculate the credit when you file.


If you do not have qualifying coverage or an exemption for each month of the year, you will need to make an individual shared responsibility payment with your return.

In general, the annual payment amount is the greater of a percentage of your household income or a flat dollar amount, but is subject to certain caps.


Page Last Reviewed or Updated: 24-Mar-2015