Beginning in 2014, the individual shared responsibility provision of the Affordable
Care Act (ACA) requires you and each member of your family to have qualifying health
insurance (called minimum essential coverage), have an exemption, or pay a shared
responsibility penalty with your 2014 individual income tax return, Form 1040. Many
people already have minimum essential coverage and don't need to do anything more
than maintain that coverage.
Do I have minimum essential coverage? You have minimum essential
coverage if you have employer-sponsored coverage, coverage obtained through a Health
Insurance Marketplace, or coverage through a government-sponsored program. Coverage
under certain other plans will qualify as well. You must maintain this coverage for
each month of the calendar year.
Am I eligible for an exemption? You may be exempt from the
requirement to maintain minimum essential coverage if you're a member of certain
religious sects, a federally recognized Indian tribe, or a health care sharing
ministry. You may also be eligible if you are suffering a hardship, meet certain
income criteria, or are uninsured for less than three consecutive months of the
Will I have to pay a penalty? If you or any of your dependents don't
have minimum essential coverage or an exemption, you will have to pay an individual
shared responsibility penalty with your tax return.
For 2014, the annual shared responsibility penalty is the greater of:
- 1% of your household income that is above your tax return filing threshold, or
- Your family's flat dollar amount, which is $95 per adult and $47.50 per child,
limited to a family maximum of $285 for 2014.
However, the maximum amount cannot be more than the cost of the national average
premium for a bronze level health plan available through the Marketplace in 2014.
This publication is distributed with the understanding that the author, publisher and
distributor are not rendering legal, accounting or other professional advice or
opinions on specific facts or matters, and, accordingly, assume no liability
whatsoever in connection with its use. The information contained in this newsletter
was not intended or written to be used and cannot be used for the purpose of (1)
avoiding tax-related penalties prescribed by the Internal Revenue Code or (2)
promoting or marketing any tax-related matter addressed herein. © 2014