Today, I'm going to talk about taxes, specifically the shared responsibility payment. This provision was part of the healthcare reform and it requires individuals to either have health coverage, have a health coverage exemption, or make a shared responsibility payment with their tax return. This payment is commonly known as the tax penalty. Contrary to popular belief, there is still a tax penalty for not having health insurance for the 2017 and 2018 tax years. Today, I will discuss one particular exemption that many people actually qualify for - the coverage considered unaffordable exemption. Please note that I am not a licensed accountant, so it's always best to consult with a professional. To claim this exemption, individuals can file the Form 8965, which is a health coverage exemption form, along with their taxes. This exemption is applicable for individuals who have short-term health coverage or a health sharing plan. Many people opt for these options because the costs through the marketplace can be quite high without a subsidy. Let's consider an example to better understand this exemption. We'll use Lancaster County, PA. Assume we have a married couple, both aged 60, with an annual income of $72,000. We'll input this information and see if they qualify for the exemption. In this area, the cheapest plan offered on the marketplace costs $1,900. To determine if they are exempt from the tax penalty, we calculate 8.16% of their income, which equals $5,875. By comparing this figure with the cost of the cheapest plan, we can determine if they qualify for the exemption. In this case, since $5,875 is greater than $1,900, they would be exempt from the tax penalty. It's important to note that this calculation is specific to this example and may vary based on individual circumstances. Therefore, it's always advisable to consult with...
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8965 2023 Form: What You Should Know
If you were covered at a health plan during this period, report yourself in any of the other applicable coverage categories and file a separate Form 8965 for each coverage period. This page also contains information on: You filed an estimate of your tax for 2018. If you are looking for instructions based on a claim that your tax for 2023 was 0, use the 2017 Estimate page. For tax returns that have a refund due, go to our Return filing options for Refunds to determine if you can complete your tax return using the Electronic Federal Tax Payment System (FTPS). No health coverage for 2023 | Healthcare.gov 2018 Form 8965 Complete this form if you have a Marketplace-granted coverage exemption, or you are claiming a coverage exemption on your return. 2018 Form 8965 — IRS This form was sent to all taxpayers. If you do not receive it, please be sure to check your “Notify Me” box. 2018 Form 8965 Instructions | eFile.com Form 8965. Form 8965 was used to report an exemption from owing a tax payment for not having health insurance during the Tax Year 2023 and earlier tax years. 2017 Estimate — Coverage Exemptions for Tax Year 2023 (PDF, 67 KB) No health coverage for 2023 | Healthcare.
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