You are required to make a payment for the months that you and any family members do not have minimum essential coverage or a coverage exemption when you file your tax return. To find out if you qualify for an exemption or must make a payment use our interactive tool, Am I eligible for a coverage exemption or required to make an Individual Shared Responsibility Payment? Also, see the Individual Shared Responsibility Payment Estimator.
If you have to make a payment, you can use the worksheets located in the instructions to Form 8965, Health Coverage Exemptions, to figure the shared responsibility payment amount due. Filing electronically is the easiest way to file a complete and accurate tax return. The software guides you through the process. IRS assistors cannot calculate the shared responsibility payment for you.
The annual payment amount is either a percentage of your household income in excess of the return filing threshold or a flat dollar amount, whichever is greater. If you have coverage or an exemption for only part of the year, you will prorate your payment for an amount less than the annual payment. The amount you will have to pay may be limited depending on your circumstances.
Your payment amount is capped at the cost of the national average premium for a bronze level health plan available through the Marketplace. For 2016, the annual national average premium for a bronze level health plan available through the Marketplace is $2,676 per year ($223 per month) for an individual and $13,380 per year ($1,115 per month) for a family with five or more members.
- Filing Threshold: The minimum amount of gross income an individual of your age and with your filing status (e.g., single, married filing jointly, head of household) must make to be required to file a tax return.
**After year 2016, the flat dollar amounts are based on the 2016 amounts plus an inflation adjustment…
Calculating your payment requires you to know your household income and your tax return filing threshold.
Household income is the modified adjusted gross income of you, your spouse (if filing jointly), and any dependents who are required to file a tax return. Modified adjusted gross income is the adjusted gross income from the tax return plus any excludible foreign earned income and tax-exempt interest received during the taxable year.
Tax return filing threshold is the minimum amount of gross income an individual of your age and with your filing status must make to be required to file a tax return.