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ACA Individual Shared Responsibility Provision - Form 8965 Exemptions from Health Coverage Penalty
1
As explained on the HealthCare.gov website Fees & Exemptions, if you do not have health coverage in 2017, you may have to pay a fee. This fee is called the individual shared responsibility payment. 

It is possible, in certain circumstances, to get an exemption from this individual shared responsibility payment. If you do not have health coverage, one of the following three could apply to your situation.

  1. You can claim the exemption when you complete your 2017 Federal tax return if you are applying for an exemption based on any of the following:

    • coverage being unaffordable
    • membership in a health care sharing ministry
    • membership in a federally-recognized tribe or ANCSA corporation
    • incarceration
    • short coverage gap
    • citizens living abroad and certain noncitizens
    • a member of the tax household was born, adopted or died during the year

  2. You must complete and submit an application to the Marketplace if you are applying for an exemption based on any of the following:

    • one of the 14 Hardship Exemptions listed on the HealthCare.gov website
    • eligibility for services through an Indian health care provider
    • membership in a recognized religious sect whose members object to insurance

    According to the HealthCare.gov website After you apply for an exemption, after you submit your exemption application, the Marketplace will review it and determine if you qualify for an exemption from the fee for not having coverage. The time it takes for the Marketplace to respond depends on how complicated your request is, how complete your application is, and whether you need to submit documentation after you apply. To speed up the process, submit any required documentation with your exemption application. The Marketplace will mail you a notice of the exemption eligibility result. If you're granted an exemption, the Marketplace notice will include your unique exemption certificate number (ECN). You can enter your ECN into the TaxAct program using the steps below.

  3. You do not need to apply for an exemption if your income is low enough that you are not required to file taxes. This is true even if you choose to file a return in order to get a refund of money withheld from your paycheck.


To enter a coverage exemption into the TaxAct program, follow the steps below:
  1. From within your TaxAct return (Online or Desktop), click on the Federal tab. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal
  2. Click Health Insurance to expand the category and then click Individual coverage exemptions
  3. Click Add to create a new copy of the form or Review to review a form already created. Fill out Form 8965, Part I for Marketplace-granted exemptions or Form 8965, Part III for coverage exemptions claimed on your return.
  4. The program will proceed with the interview questions for you to enter or review the appropriate information