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Check Out this Chart to Discover How the Health Care Law Affects You

IRS Health Care Tax Tip 2016-33, March 17, 2016

The Affordable Care Act includes the individual shared responsibility provision and the premium tax credit. This chart explains how the health care law may affect you and your tax return.

  IF YOU… THEN YOU…
Are a U.S. citizen or a non-U.S. citizens living in the United States Must have qualifying health care coverage, qualify for a health coverage exemption, or make a payment when you file your income tax return

 

Had coverage or an employer offered coverage to you in the previous year

 

Will receive one or more of the following forms;

This information will help you complete your tax return.

Had health coverage through an employer or under a government program (such as Medicare, Medicaid and coverage for veterans) for the entire year Just have to check the full-year coverage box on your Form 1040 series return and do not have to read any further
Did not have coverage for any month of the year Should check the instructions to Form 8965, Health Coverage Exemptions, to see if you are eligible for an exemption
Were eligible for an exemption from coverage for a month Must claim the exemption or report an exemption already obtained from the Marketplace by completing Form 8965, Health Coverage Exemptions, and submitting it with your tax return
Did not have coverage and were not eligible for an exemption from coverage for any month of the year Are responsible for making an individual shared responsibility payment when you file your return
Are responsible for making an individual shared responsibility payment Will report it on your tax return and make the payment with your income taxes
 Need qualifying health care coverage for the current year Visit HealthCare.gov to find out about the dates of open 
and special enrollment periods for purchasing 
qualified health coverage. 
Enroll in health insurance through the Marketplace for yourself or someone else on your tax return.

 Might be eligible for the premium tax credit

 

Received the benefit of more advance payments of the premium tax credit than the amount of credit for which you qualify. Will repay the amount in excess of the credit you are allowed subject to a repayment cap.
Did not enroll in health insurance from the Marketplace for yourself or anyone else on your tax return

 Cannot claim the premium tax credit

 

Are eligible for the premium tax credit Can choose when you enroll in coverage to get premium assistance sent to your insurer to lower your monthly payments or get all the benefit of the credit when you claim it on your tax return
Choose to get premium assistance when you enroll in Marketplace coverage. Will have payments sent on your behalf to your insurance provider. These payments are called advance payments of the premium tax credit
Get the benefit of advance payments of the premium tax credit and experience a significant life change, such as a change in income or marital status Report these changes in circumstances to the Marketplace when they happen
Get the benefit of advance payments of the premium tax credit Will report the payments on your tax return and reconcile the amount of the payments with the amount of credit for which you are eligible

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Page Last Reviewed or Updated: 21-Feb-2017