The IRS will not process your tax returns this year if you do not address the health coverage requirements of the Affordable Care Act (ACA).
This is a reversal of last year’s filing season when the IRS would accept and process tax returns that were silent on coverage.
The IRS said, about the change in position, that “this process reflects the requirements of the ACA and the IRS’s obligation to administer the health care law. The 2018 filing season will be the first time the IRS will not accept tax returns that omit this information.”
For the 2018 filing season, the IRS will not accept electronically filed tax returns where the taxpayer does not address the health coverage requirements of the Affordable Care Act. The IRS will not accept the electronic tax return until the taxpayer indicates whether they had coverage, had an exemption or will make a shared responsibility payment. In addition, returns filed on paper that do not address the health coverage requirements may be suspended pending the receipt of additional information and any refunds may be delayed.
To avoid refund and processing delays when filing 2017 tax returns in 2018, taxpayers should indicate whether they and everyone on their return had coverage, qualified for an exemption from the coverage requirement or are making an individual shared responsibility payment. This process reflects the requirements of the ACA and the IRS’s obligation to administer the health care law.
Taxpayers remain obligated to follow the law and pay what they may owe at the point of filing. The 2018 filing season is the first time the IRS will not accept tax returns that omit this information. After a review of our process and discussions with the National Taxpayer Advocate, the IRS has determined identifying omissions and requiring taxpayers to provide health coverage information at the point of filing makes it easier for the taxpayer to successfully file a tax return and minimizes
related refund delays.
If you’re claiming a healthcare exception, you need form 8695.
This form helps you comply with Affordable Care Act rules that require health insurance coverage for just about everyone in the country. Here’s everything you need to know about the 8965 tax form and who’s qualified to use it.
Health Coverage Exemptions
The full list of health coverage exemptions (with details for each exemption category) can be found on page 3 of the IRS instructions for form 8965. Here are some of the categories of exemptions that you can claim for a given tax year:
You were a member of a healthcare sharing plan.
Your income was below the tax filing threshold.
You were living abroad for at least 330 days.
You were incarcerated.
You’re a member of an Indian Tribe.
You were unable to renew your existing coverage.
You can’t afford coverage.
You live in a state that didn’t expand Medicaid and your income is less than 138% of the federal poverty line for your family size.
You went without coverage for less than three consecutive months.
A member of your household was born, died or adopted so you can’t check the box saying the whole household had 12 months of health insurance coverage.
You’re a member of certain qualified religious sects.
You were turned down for Medicaid in a state that didn’t expand Medicaid.
You experienced “general hardship.”
You participated in one of certain Medicaid programs that aren’t considered minimum essential coverage.
How To Fill Out Form 8695
The video below will walk you through the process of completing form 8695.
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