For the upcoming 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 will be 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.
What do I need to know about the health care law?
The Individual Shared Responsibility Provision requires you and each member of your family to have qualifying health insurance (called minimum essential coverage), have an exemption, or make a shared responsibility payment when you file your federal income tax return. If you get your insurance coverage through the Health Insurance Marketplace, you may be eligible for a Premium Tax Credit.
- If you are like most people, you probably already have qualifying health care coverage and don’t need to do anything more than continue your insurance.
- If you don’t have or maintain coverage, you will have to get an exemption or make a payment with your federal income tax return.
- If you don’t have coverage, you may be able to get it through the health insurance marketplace. For more information about the marketplace, visit HealthCare.gov.
- If you get coverage through the health insurance marketplace you may be eligible for a
Premium Tax Credit (PTC).
- The premium tax credit can be paid in advance to your insurance company or to you when you file your federal income tax return.
- If you receive advance credit payments, you need to report changes in circumstances that will affect the credit to the Marketplace as they happen.
- If you don’t have coverage or qualify for an exemption you may have to make an Individual Shared Responsibility payment when you file your income tax return.
- For 2017, generally, the payment amount is the greater of 2.5% of your household income above your filing threshold or $695 per adult.
- You will report your coverage, exemption or payment on your federal income tax return.