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No Health Insurance? Find Out if You’re Exempt From the Tax Penalty

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The Affordable Care Act is designed to ensure everyone has health insurance and imposes tax penalties on those who don’t. But the law recognizes there are legitimate reasons people may be exempt from this rule. In fact, an estimated 20 million Americans may qualify to waive the tax penalty this year.

TurboTax already helps you sign up for health care you can afford. The IRS free online tool can help you learn whether you qualify for an exemption from the tax penalty. This free online service lets anyone without insurance determine, in just a few minutes, if they may be eligible to waive the health care tax penalty.

The IRS free online tool makes it simple to apply for a penalty exemption. Once you answer a few questions about yourself and your family, you can quickly see if you may be eligible for one or more exemptions. The IRS free online tool guides you through completing the application and files it for you. You’ll receive an email alert when your application has been submitted.

If you’re uninsured, using the IRS free online tool now to determine whether you qualify for an exemption is a smart decision. It will ensure you have the right tax forms come tax time, speed up your tax preparation so you get your tax refund faster and ensure that some of your refund doesn’t go toward paying the tax penalty for not having health insurance.

Currently, there are about 30 reasons someone may be exempt from penalty for not having health insurance. Those who have medical expenses they couldn’t afford don’t have to pay the penalty. Neither do some with low incomes. For example, low-income individuals who aren’t required to file an income tax return don’t have to pay the penalty.

Exemptions are also available because of homelessness, eviction, foreclosure, bankruptcy, the death of a close family member or an experience with domestic violence. Members of Native American tribes also are not required to sign up for health insurance.

There are a few exemptions, like income not meeting IRS filing requirements, that can be applied for at the time you are filing your taxes, however, most of them require you to apply before you file your taxes since you’ll need to include an exemption certificate number on your return.

The IRS free online tool is one more way we’re simplifying the Affordable Care Act, translating the tax code into easy-to-answer questions that give you the confidence to navigate the new health care law and empower you to make the right choices for you and your family.





4 responses to “No Health Insurance? Find Out if You’re Exempt From the Tax Penalty”

  1. I think I made a mistake when filing. I was exempt from paying the penalty when I shouldn’t have been. What do I do? It’s already been filed and accepted.

  2. Richard,
    You may qualify for an exemption if your out of pocket exceeds 8% of your income. You can check it out at TurboTax Exemption Check using the link in the post.
    Mary Ellen

  3. What about when your Obamacare premiums double your previous policy rate, Obamacare reduces your benefits significantly (out-of-pocket goes from $6000 to $15,500), and you have to give up your hospital two miles away for a new one across town (over 15 miles away?? Shouldn’t you be entitled to an exemption??

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