As you may know, the IRS is in charge of enforcing the shared responsibility payment that may be imposed upon you if you or any family members do not have the minimum essential coverage of health insurance throughout the year. There are exemptions to this payment for which you may qualify, but generally speaking, everyone is now required to either carry the minimum level of health insurance or pay the IRS the assessed responsibility payment which is calculated when filing your annual income tax return.
Here are seven things to know about this payment:
- You are not required to make a payment if you had coverage or qualify for an exemption for each month of the year.
- If you did not have coverage and your income was below the tax filing threshold for your filing status, you qualify for a coverage exemption and you should not make a payment.
- If you are not a U.S. citizen or national, and are not lawfully present in the United States, you are exempt from the individual shared responsibility provision and do not need to make a payment. For this purpose, an immigrant with Deferred Action for Childhood Arrivals status is considered not lawfully present and therefore is exempt. You may qualify for this exemption even if you have a social security number.
- If you are responsible for the individual shared responsibility payment, you should pay it with your tax return or in response to a letter from the IRS requesting payment. You should not make the payment directly to any individual or return preparer.
- The amount due is reported on Form 1040 in the Other Taxes section, and in the corresponding sections of Form 1040A and 1040EZ. You only make a payment for the months you or your dependents did not have coverage or qualify for a coverage exemption.
- If you are entitled to a refund, the refund will automatically be applied to the shared responsibility payment.
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