(ASL) - YouTube video text script - Individual Shared Responsibility – Overview
Hi, I’m Thomas, and I work for the IRS.
Chances are you’ve heard that the health care law can affect your taxes.
But you may be uncertain what it really means.
Although you may need to make decisions about the health care coverage you carry for you and your family, the fact is that most people already have the health care coverage they need, known as minimum essential coverage, and probably don’t have to do anything.
However, if you go without coverage for any part of the year, there are special rules that apply.
If you don’t qualify for an exemption, you may need to make a special payment, called an individual shared responsibility payment.
You may qualify for an exemption if you don’t need to file a tax return, if you are without access to affordable health care coverage, if you are a member of certain exempt groups, or if you are suffering a hardship, such as an unexpected significant increase in essential expenses, or becoming homeless.
There are other exemptions as well.
A complete list of them is available on the IRS website.
Now, if you or one of your dependents do not have coverage and do not qualify for an exemption, you will need to make an individual shared responsibility payment when you file your tax return.
The payment amount is either a percentage of your income or a flat dollar amount, whichever is greater.
The payment is based on the number of months you go without coverage or an exemption. For instance, if you do not have health insurance or qualify for an exemption for five months of the year, you have to make an individual shared responsibility payment for those five months. You do not have to make a payment for the other seven months that you had either health insurance or an exemption.
For more information, visit irs.gov/aca