In 2017, you were required to have insurance all year unless you qualified for an exemption. You might have gotten your insurance from an employer, from public insurance (Medicaid, Medicare, VA coverage), or from private insurance (purchased separately or from the Marketplace). And now your 2017 taxes are due. Don't get confused, get organized!
Forms, Forms, Forms...
If you got insurance from an employer or public insurance, you should have gotten 1095-B or 1095-C forms from them. You can file your taxes without those forms, though, because they are also reporting to the IRS.
If you got insurance through the Marketplace, you need the 1095-A form. You can find that online in your healthcare.gov account. With the information you have on the 1095-A form, you can reconcile your tax credits, which you do using IRS Form 8962.
If you got private insurance without tax credits, your insurer should have your 1095-A, and you don't file for tax credits. You still have to submit the 1095-A as proof you had insurance.
I Didn't Have Insurance. Can I Get An Exemption?
If you didn't have insurance for the whole year, you might have qualified for an exemption. Common exemptions would be:
- you were uncovered for less than 3 months (perhaps you moved or switched jobs)
- cost of insurance for the household was more than 8% of your income and was unaffordable
- your income is below the tax-filing threshold
- you were living out of the country for all or part of the year.
There are other exemptions, too. You file for an exemption using IRS Form 8965. Find out more below.
No Exemption? No Insurance? Pay a penalty.
If you don't qualify for an exemption, and you didn't have insurance, you might need to pay a penalty. For the 2017 plan year, the fee is calculated 2 different ways — as a percentage of your yearly household income, and per person. You’ll pay whichever is higher.
1. Percentage of income: 2.5% of yearly household income. The maximum is the total yearly premium for the national average price of a Bronze plan sold through the Marketplace.
2. Per person per year: $695 per adult or $347.50 per child under 18. The maximum is $2,085 per household.
A Household Is Made Up Of Individuals
NOTE: Think about each person in the household separately! In some cases, you may have one person on the Marketplace or with employer insurance, one person with an exemption based on affordability, and a child on Medicaid or MIChild.
If you finish your taxes, you realize you will owe some money, and you don't want that to happen again, come visit us at 555 Towner, Ypsilanti, MI M-F 9-4 p.m., or call us at 734-544-3030, for a free consultation.