Affordable Care Act

ACA & Your Taxes

With the passage of the Affordable Care Act, health care and taxes have intersected. All tax filers must report the value of their health plan on their tax return, and this will be enforced by the IRS. Those who do not have health insurance coverage will pay a tax penalty if they do not qualify for a coverage exemption.  

Penalties & Exemptions

  • Under ACA, individuals may face a tax penalty for not having health insurance. The IRS has said that it will not accept e-filed 2017 tax returns that do not indicate if a household had heath insurance or a coverage exemption or will pay the tax penalty.
  • Business with 50 or more full-time employees are required to offer health insurance coverage or face a tax penalty.
  • Depending on your circumstances, you may be able to qualify for a coverage exemption from the penalty. Click on HealthCare.gov Exemption Screener to see if you qualify for coverage exemption.

Tax Credits

People who enroll in a Marketplace plan may receive a Premium Tax Credit, also know as a tax subsidy, which is available to individuals and businesses to lower the cost of having insurance. This credit must be reconciled on your tax return.

Important ACA Dates & Deadlines

  • November 1, 2017: Open Enrollment begins for 2018 coverage
  • December 15, 2017: Last day to enroll for coverage that begins in 2018
  • December 31, 2017: Coverage ends for all 2017 Marketplace plans
  • January 1, 2018: Coverage for 2018 can begin
  • April 17, 2018: Last day to file taxes or apply for a 6-month filing extension