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:
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).