Form 8965, Health Coverage Exemptions, is filed with your
2016 return if you (or anyone else on your return) didn’t have health
insurance coverage for the entire year, as required by the Affordable
Care Act.
Form 8965 is used to:
- Report an exemption you can claim to waive the penalty for not having insurance
- Calculate the penalty for not having insurance, if you don’t qualify for an exemption
If you tell us you didn’t have health insurance coverage or
only had it for part of 2016 (in the Health Insurance section under
Federal Taxes), we’ll create Form 8965 and see if you qualify for an
exemption.
Exemptions
are available based on a number of circumstances, including certain
hardships, some life events, health coverage or financial status, and
membership in some groups. Most exemptions can be claimed on your tax
return. Some require you to mail an application to the Marketplace.
Either way, we’ll let you know if you qualify and if you need to take
any additional steps.
We handle the calculation of the penalty
(Shared Responsibility Payment). For 2016, the penalty will be the
larger of either 2.5% of your household taxable income or a flat dollar
amount per household. The flat tax is $695 per each adult ($347.50 per
child).
