The Taxpayer Advocate Service developed the Individual Shared Responsibility Provision - Payment Estimator to help you estimate the amount you may have to pay if you did not have minimum essential coverage during the year.
The Tax Cuts and Jobs Act of 2018 does not reduce this shared payment requirement to zero until tax year 2019. Taxpayers must continue to report coverage, qualify for an exemption, or make an individual shared responsibility payment for tax years 2017 and 2018.
For more information, see Individual Shared Responsibility Provision - Reporting and Calculating the Payment on IRS.gov.
Under the Affordable Care Act, the federal government, state governments, insurers, employers, and individuals are given shared responsibility to reform and improve the availability, quality, and affordability of health insurance coverage in the United States.
Specifically, this provision requires each individual to:
- Have minimum essential health coverage every month,
- Qualify for an exemption, or
- Make a shared responsibility payment
If you, your spouse, or any of your dependents don’t have minimum essential coverage and don’t have exemptions, a shared responsibility payment will be due when the return is filed. This tool can help estimate that amount.
You may be exempt from the requirement to maintain minimum essential coverage and thus will not have to make a shared responsibility payment when you file your federal income tax return if you meet certain criteria.
You may be exempt if you:
- Have no affordable coverage options because the minimum amount you must pay for the annual premiums is unaffordable,
- Have a gap in coverage for less than three consecutive months, or
- Qualify for an exemption for one of several other reasons, including having a hardship that prevents you from obtaining coverage or belonging to a group explicitly exempt from the requirement.
You can get more information about what types of exemptions are available at at:
- The Taxpayer Advocate Service Individual Shared Responsibility Provision.
- Qualifying for an Exemption from Health Insurance on Healthcare.gov.
- Individual Shared Responsibility Provision - Exemptions on IRS.gov.
You will need to provide:
- Your expected annual household income,
- Your expected filing status,
- Whether you (and your spouse, if married and filing jointly), are 65 or older for the entire year,
- Information on your family members' coverage.