Filing the 8.05% Exemption

Coverage Considered Unaffordable

 

Exemptions granted by the exchange or the IRS

The lowest-cost plan would have been more than 8.05 percent of your household income in 2018, or more than 8.16 percent of your household income in 2017. You can get this exemption from the exchange based on your projected income for the year, or from the IRS when you file your taxes, based on your actual income.

Source: https://www.healthinsurance.org/obamacare/obamacare-penalty-exemptions/

How Do I Get the Exemption Based on My Coverage Being Unaffordable?

You will simply claim it when you file your taxes. The process is fast and easy. To claim an exemption, select the exemption that applies to you, enter the corresponding code on Form 8965 and send the form to the IRS with your income tax return.  Instructions for Form 8965.  For this exemption, it will be “Coverage Considered Unaffordable,” which is code A. To claim the “Coverage Considered Unaffordable” exemption if you are eligible for Marketplace coverage, you’ll need to know the premium for the lowest cost Bronze plan you could have enrolled in for 2018. Visit https://www.healthcare.gov/tax-tool to find this information. If you would have had to pay more than 8.05 percent of your household income in premiums – after any applicable tax credit – for this lowest cost Bronze plan, you can claim this exemption.

If you already received a similar exemption through the Marketplace based on your projected income, you use the Exemption Certificate Number provided to you when you file your taxes. If you have questions about Marketplace exemptions or about your Exemption Certificate Number, visit HealthCare.gov/taxes, or call the Marketplace call center at 1-800-318-2596.

If you have questions about how to claim an exemption on your tax return, visit the Internal Revenue Service webpage on exemptions. To find out if you qualify for an exemption use the IRS interactive tool: “Am I Eligible for a Coverage Exemption or Required to Make an Individual Shared Responsibility Payment?” Where can I get help with my taxes? Most people use software to file their taxes, which is the easiest way to complete your tax return as it guides you through the process and does all the math. Resources are available to help you file your taxes, including free tax filing services if you meet certain income requirements: · Free In-Person Volunteer Assistance through the Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs. · Free Software Returns through IRS Free File for taxpayers with incomes below $60,000. · Commercial software. · Professional assistance.

Form 8965: https://irs-form-8965.pdffiller.com/?gclid=EAIaIQobChMIot7anbO82QIVSjqBCh2Jng5EEAAYASAAEgIj0fD_BwE

Instructions for Form 8965: https://www.irs.gov/pub/irs-pdf/i8965.pdf

Look up lowest cost Bronze plan: https://www.healthcare.gov/tax-tool