Despite Congress’s efforts, neither a repeal of the Affordable Care Act (“Obamacare” or “the ACA”) nor a tax reform bill have made it into law.  As such, the individual insurance mandate is still in effect for the 2017 tax year.  On the 2016 tax returns, the IRS gave us the option leave blank the answer to the healthcare coverage question.  This put the onus on the IRS to come after taxpayers to enforce assessment and payment of the ACA mandate penalty.  However, for the 2017 year, the IRS has stated that it will no longer accept tax returns that have left the healthcare question blank.  So, if you do not have healthcare coverage and don’t have an acceptable exemption from the penalty, I will have no choice but to answer the healthcare coverage question “no” and calculate the penalty.

Here is a link to the IRS’s summary of the healthcare law and how it affects most taxpayers.  I’ve boiled down most of the highlights:

• If you have health insurance through your employer, they will likely issue you a Form 1095-C.  Add this to your tax data and give it to me when we do your tax return.  No further information is generally required.
• If you purchased insurance through the individual market (not on the Healthcare Marketplace Exchanges), you should receive a Form 1095-B.  I will need this form and a summary of the health insurance premiums you paid out of pocket.
• If you purchased insurance through the Healthcare Marketplace Exchange (www.healthcare.gov), you should receive a Form 1095-A.  I will need this form, but no further information is generally required.
• If you are claiming a health coverage exemption issued by a religious health-sharing provider or you have an Exemption Certificate Number issued by the Marketplace, please include applicable documents with your tax data.

Some of you may be wondering about these health coverage exemptions.  Here is a link to the Marketplace’s 2017 health coverage exemptions and how to apply for them, and here is a link to the IRS’s tool to help you determine if you are eligible for a health coverage exemption.  If you think you may be eligible for an exemption, please visit both of those sites.  Print out the results and include them with your tax data so we can make sure we report it correctly.

Finally, a reminder that open enrollment for 2018 coverage on the Healthcare Marketplace ends December 15, 2017.  Since my crystal ball is on the fritz, I have to advise based on the laws currently in effect.  So, my advice is to enroll in a health insurance plan now to avoid a penalty on the 2018 tax return!