The ACA now requires almost everyone to have health insurance. However, some people may choose not to enroll in health insurance. If you choose not to enroll there may be consequences in the form of a tax penalty, unless you qualify for an exemption. A penalty could mean your refund might be reduced, or you could pay more if you owe taxes at the end of the year.
The penalty in 2015 is calculated one of two ways. If you or members of your household don’t have insurance that qualifies as minimum essential coverage you'll pay whichever of these amounts is higher:
Depending on your circumstances, you may qualify for an exemption to either lower your tax penalty or eliminate it altogether. Many kinds of exemptions can be claimed on your tax return; however, you may need to apply for some exemptions and get Marketplace approval. Good thing there’s also an easy way to understand it all. Allow us to explain…
Exemptions are based on factors such as financial hardships, religious affiliations, and gaps in coverage – just to name a few. Here’s a look at all the exemptions available and how you get them.
Want to know more about how H&R Block can help to see if you qualify for an exemption?