Facts about the Individual Shared Responsibility Provision

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May 29, 2014 by Tony Novak

IRS Publication 5156 published May 29, 2014

The individual shared responsibility provision of the Health Care Law 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 iling a
federal income tax return. Many people already have minimum essential coverage and don’t need to do anything more than maintain
that coverage.
Do I have minimum essential coverage?
You have minimum essential coverage if you have employer-sponsored coverage, coverage obtained through a Health Insurance Mar­
ketplace, coverage through most government-sponsored programs, as well as certain other plans. You must maintain this coverage for
each month of the calendar year. For information about additional types of coverage that qualify, check our minimum essential coverage
chart on IRS.gov/aca.
Am I eligible for an exemption?
You may be exempt from the requirement to maintain minimum essential coverage if you’re a member of certain religious sects, a
federally recognized Indian tribe, or a health care sharing ministry. You may also be eligible if you are suffering a hardship, meet certain
income criteria, or are uninsured for less than three consecutive months of the year. For more information, check our exemptions chart
on IRS.gov/aca.
Will I have to make a payment?
If you or any of your dependents don’t have minimum essential coverage or an exemption, you will need to make an individual shared
responsibility payment on your tax return.
For 2014, the annual shared responsibility payment amount is the greater of:
• 1 percent of your household income that is above your tax return iling threshold, or
• Your family’s lat dollar amount, which is $95 per adult and $47.50 per child, limited to a family maximum of $285 for 2014.
The maximum amount you pay cannot be more than the cost of the national average premium for a bronze level health plan available
through the Marketplace in 2014.
For more information about the individual shared responsibility provision, visit IRS.gov/aca.

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