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Hawaii Form 8965: What You Should Know

We are working. What Is IRS-Dependent Health Insurance? Insurance that provides you coverage for you or your dependents. Insurance does not include health plans that you purchase outside the Obamacare exchange or the tax-exempt health insurance of a church, synagogue, or other nonprofit. There are some exceptions to this rule, but it generally requires that you do not pay more than 8.2 percent of your adjusted gross income for any tax year. This website describes the IRS-dependent health insurance  If your income is above the IRS-dependent health insurance income requirement, you will likely be charged Medicare premiums as well as any state and local taxes due on your premium contribution. The Affordable Care Act imposed a penalty on those who have an “after-tax” health plan.  If you have an after-tax health plan, but you would not have paid additional taxes by not getting a health plan from the Obamacare exchange you may be charged a penalty tax under Internal Revenue Code Section 45R. You must notify them in writing when you make this change and if they do not respond in six months you are required to begin your return as if you had never made the change. For more updates on healthcare reform and Obamacare, read our other publications. We are working on providing a healthcare update on a weekly basis.

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