Do you owe a payment on your tax return for not having health coverage?

The Individual Shared Responsibility provision is a part of the Affordable Care Act and calls for taxpayers to have qualifying health coverage, qualify for a exemption, or make a payment to be included on their tax return.   Almost everyone will need to do something new when they file their tax returns this year.

The three types of qualifying coverage are:

  1. Most employer sponsored coverage.
  2. Governmental programs – Medicaid, Medicare, and CHIP.
  3. Health Insurance Marketplace.

The exemption opportunities include:

  • you did not have access to coverage that is considered affordable because the minimum amount you must pay for the annual premiums  is more than 8% of your household income.
  • you had a gap of coverage of less than 3 months
  • you qualify for one of several other exemption: ie hardship


In general, the annual payment amount is the greater of :

  • 1% of your household income above the filing threshold for your status
  • $95 per person without coverage or an exemption, but limited to a family maximum of $285


You will owe 1/12 of the annual payment for each month you or another person on your tax return doesn’t have either qualifying health coverage  or a coverage exemption.  The payment cannot exceed the national average premium for a bronze level health plan available through the marketplace.