Obtaining Health Care Coverage Exemption
With the new health care law, taxpayers are required to have health care coverage. Coverage includes CHIP, Medicare, Medicaid, Employer-sponsored insurance and individual health insurance. However, in certain situations, taxpayers can obtain an exemption from this requirement.
Exemptions maybe obtained if:
You have a gap in coverage that is less than three consecutive months
The minimum amount you must pay for your annual premiums is more than eight percent of your household income
You have a hardship that prevents you from obtaining coverage
You belong to a group that exempts you from the requirement to have health care coverage
Your income is below your filing threshold and you are not required to file a tax return
These exemptions can either be obtained from the marketplace or on the taxpayer’s tax return by filing Form 8965, Health Coverage Exemptions. If you are granted a coverage exemption from the Marketplace, they will send you a notice that lists your Exemption Certificate Number (ECN). If the marketplace has not processed your exemption before you file, you would have to indicate that it is pending on your tax return. If the exemption is claimed on your return, you would not need an ECN.