Reporting Health Care Coverage On Your 2018 Tax Return

Did you know you are required to report health care coverage on your 2018 tax return?

As you are gathering information for your tax preparer for your 2018 tax return, remember you must include the information related to health care. If you are preparing the return yourself, you must complete the lines related to health care.

The law requires you to maintain health care coverage if you do not qualify for an exemption.

For tax year 2018, the IRS will not consider your tax return complete and accurate if you do not do one of the following on your return:

Report full-year health coverage
Claim a coverage exemption
Report and make a shared responsibility payment for everyone on the tax return

The law continues to require taxpayers who do not qualify for an exemption to maintain health care coverage in 2018 or make a shared responsibility payment when they file their tax return.

Most taxpayers have qualifying health coverage or a coverage exemption for all 12 months in the year and will check the box on the front of their tax return. Taxpayers who can check the box do not have to file Form 8965, Health Coverage Exemptions, to claim any coverage exemptions. This includes the coverage exemption for household income below the filing threshold.

Taxpayers who did not have coverage for the entire year and therefore cannot check the box generally must report a shared responsibility payment when they file. They will report this payment for each month that anyone listed on the tax return did not have qualifying health care coverage or a coverage exemption.

Do you qualify for an exemption?

Your tax preparer can determine if you are eligible for a coverage exemption or are responsible for the individual shared responsibility payment. You may also use the Interactive Tax Assistant on IRS.gov. In addition, you may be eligible for the premium tax credit if you purchased health coverage through the Health Insurance Marketplace. Anyone who needs health coverage can visit HealthCare.gov to learn about health insurance options that are available for them and their family.

Under the Tax Cuts and Jobs Act, the shared responsibility payment is reduced to zero for tax year 2019 and all subsequent years. See Publication 5307, Tax Reform Basics for Individuals and Families, for information about the shared responsibility payment for tax year 2019.