Affordable Care Act Tax Provisions for Individuals and Families

The Affordable Care Act includes the individual shared responsibility provision and the premium tax credit that may affect your tax return.

The individual shared responsibility provision requires you, your spouse, and your dependents to have qualifying health insurance for the entire year. In addition, you may be eligible for the premium tax credit if you purchased health coverage through the Health Insurance Marketplace.

Filing Season 2020

Under the Tax Cuts and Jobs Act, passed December 22, 2017, the amount of the individual shared responsibility payment is reduced to zero for months beginning after December 31, 2018.

Beginning in tax year 2019, Form 1040 and Form 1040-SR will not have the "full-year health care coverage or exempt" box and Form 8965, Health Coverage Exemptions, will no longer be used. You need not make a shared responsibility payment or file Form 8965, Health Coverage Exemptions, with your tax return if you don't have minimum essential coverage for part or all of  the year.

Claiming and Reconciling Premium Tax Credit

If you purchased coverage through the Health Insurance Marketplace, you may be eligible for the premium tax credit.

• Find out if you are eligible for the credit.
• Claim and reconcile the credit on Form 8962.
• Report changes in circumstances.