New from tax attorneys in Los Angeles - Health Coverage Exemptions

Friday, November 20, 2015

As part of the Affordable Care Act’s (ACA) Health Insurance everyone who qualifies for health insurance needs to have it.  This is an individual responsibility for yourself, your spouse and your dependents.  For those who have qualifying health insurance you may report a health coverage exemption or you when you file your taxes you can make a shared responsibility payment.


We are the Strategic Tax Lawyers, specialty tax attorneys in Los Angeles who want to advise all taxpayers about your health coverage exemption options. If you received your health care insurance through the ACA Marketplace, then you can determine your eligibility for an exemption based on your health care coverage.  This type of exemption will depend on what coverage you have. You can find a chart of the different exemptions on the IRS website. In general, some exemptions are available from the ACA Marketplace and there are some exemptions that can be claimed when you file your tax return.


If you determine that you are eligible for a Marketplace exemption, then you just need to fill out an exemption application that is sent to the ACA Marketplace. Then, if you are granted the exemption you will be mailed a notice that will include a specific Exemption Certificate Number (ECN) that is unique to your identification.  You should always keep this information safe with all your other important tax documents. This ECN will be used when you file your tax return.  We recommend that you apply early in order to receive this notice early on so you have it in time to file your tax return.

If you qualify for a health care exemption that you will claim on your tax return, then there is no need to call the IRS to obtain the exemption in advance. Instead, you will need to do is complete Form 8965. For health coverage exemptions and file it with your tax return.

If you do not have any health care coverage and your income earnings are below what the filing requirement threshold is for your filing status, then you will be exempt. This means that you will not have a shared responsibility payment nor will you need to file a return to claim the coverage exemption. If  you do decide to file a tax return, then you then you will need Form 8965.


Please remember that if you have any changes in the size of your family or your job income, it may change in your exemption or tax credits so update your forms accordingly. 


The Strategic Tax Lawyers - , LLP are a firm of tax professionals and professional tax tax attorneys based in California .  We, at the Strategic Tax Lawyers Firm, are experts in tax code with decades of successful experience dealing with the IRS and settling tax-related cases for our clients.  Call the Strategic Tax Lawyers at (800) 669-4775 for a free consultation to assist you with your tax-related matters.