Health Care 70 Percent of Uninsured Taxpayers are Saving Money with Exemptions Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by TurboTaxBlogTeam Modified Jul 23, 2019 2 min read If you’re uninsured, you may qualify for a health insurance penalty exemption. Nearly three in four uninsured TurboTax filers have claimed an exemption from the individual health care mandate tax penalty as of Jan. 31, according to new data TurboTax released today. The top reasons for exemption claims? Affordability under IRS income guidelines of health plans in a taxpayer’s area or through their work place Hardship exemptions such as eviction and a recent death of a close family member The penalty for having gone without health insurance in 2015 is $325 per adult and $162.50 per child (up to $975 for a family) or two percent of household income, whichever is greater. To date, 70 percent of uninsured or partially insured TurboTax users claimed an exemption from the individual mandate tax penalty. This number is in line with last year’s overall tax season data. The IRS reported that about 300,000 people who paid the penalty likely qualified for an exemption last year. With the penalty nearly doubling this year, TurboTax is urging those without health coverage to see if they qualify for an exemption from a tax penalty. The good news is that TurboTax automatically gives you affordability exemptions based on information in your tax return if you are eligible. You may also apply for one of the many exemptions not given through your tax return by going to your state Marketplace or to the Health Insurance Marketplace. New health insurance forms should not delay tax filing Eight out of 10 taxpayers have health coverage through an employer, a government program such as Medicaid, or other private insurance and may get a new 1095-B or 1095-C form this year. According to the IRS, most taxpayers don’t need to wait to receive these forms to file their taxes nor do they need to attach this information to their return. Taxpayers may simply “check a box” if they had coverage for the full year, quickly and easily satisfying their reporting requirement. If taxpayers do receive a 1095-B or 1095-C, they should review the form for accuracy and save the form with their other tax records. TurboTax hasn’t seen significant delays in tax filing due to new health insurance forms 1095-B or C. Like last year, people who purchased health coverage on a Health Insurance Marketplace should have received Form 1095-A, which confirms their coverage, premiums and any subsidies they might have received. Entering 1095-A information in TurboTax is as simple as entering a W-2. These forms are needed for filing and being able to maintain premium assistance into 2017. Form 1095-A can be accessed through healthcare.gov or state Marketplaces. Tax time also presents an ideal opportunity to review and update current income. The TurboTax Income Estimator can help ensure Marketplace premium tax credits are accurate for 2016. Previous Post Get the 411 on Affordable Care Act 1095 Forms Next Post What is the Personal Exemption? Written by TurboTaxBlogTeam More from TurboTaxBlogTeam Leave a Reply Cancel reply Browse Related Articles Health Care Uninsured This Tax Season? See How You Can Save Money w… Health Care 6 Top Affordable Care Act Exemptions Health Care Health Reform Law Has New Implications for Consumers an… Health Care I Don’t Have Health Insurance – What Tax Pe… Health Care I Was Not Insured Under the Affordable Care Act: What … Health Care What is a Health Care Reform Tax Penalty [Calculator]? Health Care Who Qualifies for a Penalty Exemption Under the Afforda… Health Care TurboTax 2016 Health Care Penalty Calculator Health Care Are You Eligible for an Exemption? What to do Next Unde… Health Care No Health Insurance? Find Out if You’re Exempt F…