You most likely do not have to worry about the penalty. An exemption exists for members of a bona fide health care sharing ministry.
What you need to know
- A health care sharing ministry is a tax-exempt organization whose members:
- Share a common set of ethical or religious beliefs, AND
- Share medical expenses in accordance with those beliefs, even after a member develops a medical condition
- The health care sharing ministry must have been in existence and sharing medical expenses continuously since December 31, 1999.
Do this first
How to claim this exemption
- You claim this exemption when you file your federal income taxes. Most people file their taxes in April of the following year.
- On Form 8965, enter code "D" in Part III, column (c). Identify the
months this exemption applies or select (d) for the full year.
- Include Form 8965 when you file your tax return.
