The fines under Obamacare’s individual mandate were repealed in late 2017. But only for post-2018 years. The penalties still apply for 2018 returns. Taxpayers who have qualifying health insurance for themselves and their dependents for all of 2018 need only to check the box on their 1040s indicating full-year coverage. If uninsured for any month, see if you can claim an exemption on Form 8965. Otherwise, you’ll owe a tax equal to the greater of $695 per adult ($347.50 per child) or 2.5% of the excess of household income over the threshold amount for filing a return. If you do owe the tax penalty, the amount goes on Schedule 4 of the 1040, line 61. Last year, IRS rejected returns that didn’t report health coverage status. Claiming a hardship exemption for not having health insurance for 2018? The process will be much easier than in prior years. According to IRS, any available hardship exemptions may now be claimed directly on Form 8965 without first obtaining a certification from the health insurance marketplace. Just enter code “G” in column c of part III of the 8965 and check each month that it applies. See the 8965 instructions for a list of the hardship exemptions.

Obamacare Just Got Easier

by | Feb 5, 2019 | Health Coverage, Northside Tax Service, Obamacare, TallyTaxMan, tax law | 0 comments