Health Care Law and You

Affordable Care Act & Taxes - At a Glance

This chart explains how the health care law affects you. Use the Health Care Law and Your Tax Return chart to see how the law will affect your tax return. Under the recently enacted Tax Cuts and Jobs Act, taxpayers must continue to report coverage, qualify for an exemption, or pay the individual shared responsibility payment for tax years 2017 and 2018.

IF YOU…

THEN YOU…

Are a U.S. citizen or a non-U.S. citizen 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

Can 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 on your tax return

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 each month to lower your monthly payments or get all the benefit of the credit when you claim it on your tax return.

Are claiming the premium tax credit and did not benefit from advance payments of the premium tax credit

Must file a tax return and IRS Form 8962, Premium Tax Credit (PTC) and claim the credit on the line labeled "Net premium tax credit."

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

Should report these changes in circumstances to your 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.