What you need to know about the 8965 form
DID that if you are not covered by a health insurance plan qualified last year, you could face a penalty when filing your tax return?
Fortunately, you may be eligible for one of several exemptions available.
Although some of the exemptions require you to apply by the market (also known as an exchange), others may be claimed without submitting an application by filing IRS Form 8965 with your tax return returned.
What is the Form 8965, which must file?
IRS Form 8965, Health Coverage Exemptions, is the form you are filing to claim an exemption to waive the penalty for not having the minimum health insurance coverage.
Any person filing a tax return who is not eligible for health care coverage must file Form 8965.
If you have coverage through your employer, buy insurance through a contract or use private insurance, you do not need to file form 8965.
If you are not required to file a tax return because your income is too low, you also do not need to file form 8965.
If you do not have coverage and you do not qualify for an exemption, the spreadsheet form for 8965 is used to calculate your penalty (the TaxACT program will automatically for you).
Certain exemptions are as simple as checking a box on your return.
If your household or gross income is below the filing threshold and you are not required to have health insurance coverage, you do not need to provide additional documents or an exemption code when filing your return.
TaxACT will analyze your income level and check the appropriate box on your return if necessary.
TaxACT exemptions reports on your statement with a special code
TaxACT signals an exemption code on the 8965 form to the following exemptions:
- coverage gap short - be without insurance for less than three months in 2014 (for 2015, it is two months without insurance)
- unaffordable premiums defined as the minimum amount you have to pay would be more than 8 percent of your household income
- unaffordable premiums defined as total cost of self-only two or more family members, employers or -sponsored cover the cost of any employer-sponsored coverage available for all family would be more than 8 percent of your household income
- live abroad more than 330 full days during a period of 12 months, or live as a resident of another country
- Living in the United States or a citizen or US national, or as an alien lawfully in the US
- joining a health care sharing ministry
- membership a federal Indian tribe recognized
- incarceration, including being in a jail, prison or similar facility
- the inscription in certain types of Medicaid and TRICARE programs not considered as a minimum cover (2014 only)
- eligibility for coverage under an employer plan that you have not bought, which began in 2013 and ended in 2014 ( 2014 only)
- buy insurance through the market during the initial enrollment period, but with a gap in coverage at the beginning of 2014
- successful application for the children's health insurance program (CHIP) coverage during the initial enrollment period, but with a gap in coverage at the beginning of 2014
- membership of a federal Indian tribe recognized
You must market approval to take these exemptions
Some exemptions must be granted by the market.
calling for the following exemptions, you must apply for and receive an exemption certificate number (ECN), which must be reported on your tax return (and thus, makes you exempt from paying the penalty):
- membership in a health care sharing ministry
- belonging to a federal Indian tribe recognized
- incarceration, including being in a prison, a prison or similar facility
- belonging to some religious sects
- eligibility for services through an Indian health provider, such as a native American Indian, of Alaska, or spouse or a descendant of
- the circumstances that prevent you from obtaining coverage
- the lack of access to affordable coverage based on household income
- Ineligibility for Medicaid only because you live in a state that does not participate in the Medicaid expansion under the affordable care Act
- non-renewal of your policy -health and you consider unaffordable other planes
to receive your exemption and ECN, you must complete a form available on HealthCare.gov.
once you sign and send the form with all required documentation, expect to hear back within two weeks.
However, it may take much longer than if the market has any questions or need more information.
therefore allow enough time to request ECN before you want to file your tax return.
Note that certain exemptions require both market approval and code to the exemption, but other exemptions require that one or the other.
If you request an exemption, but it is refused, do not give up. You have 0 days from the date of receipt of the notice of refusal to appeal the decision.
File a single 8965 form per household
So you need to ask a blanket exemption for each person in your household, you can report all exemptions for yourself and members of your family on a form 8965.
your home includes you, your spouse, and all those whom you assert (or could claim) as a dependent on your tax return.
If you are a dependent on the return of someone else, you do not have to worry about the penalty form or deposit 8965.
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