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Wednesday, February 15, 2017

Affordable Care Act Tax Provisions for Individuals and Families

ACA Executive Order and Current Tax Filing Season
The IRS is currently reviewing the Jan. 20, 2017, executive order to determine the implications. Taxpayers should continue to file their tax returns as they normally would.

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, report a health coverage exemption, or make a payment when you file. In addition, you may be eligible for the premium tax credit if you purchased health coverage through the Health Insurance Marketplace.

Reporting Coverage

Claiming Coverage Exemptions

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

Some taxpayers are exempt from the requirement to have coverage and will not need to make a shared responsibility payment.
Claiming and Reconciling Premium Tax Credit

Making a Shared Responsibility Payment

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

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