Affordable Care Act

Useful documents:

ACA Interview

Tax Slayer entry:

Health Insurance

  • Medical coverage must be considered for every member of the household claimed on the return.
  • This should be the last thing done on the return except for education benefits, after the AGI has stabilized!
  • Tax Slayer makes the ACA process fairly easy. Simply answer the questions as presented.

Unclaimed dependents:

In years prior to 2018, our guidance from the IRS has been that if a dependent did not have insurance, penalties could be avoided by not claiming the dependent on the return. THIS GUIDANCE HAS NOW CHANGED. All dependents should be claimed and the taxpayer is responsible for providing insurance for all dependents.

(1-4) Health care plans that meet the ACA Minimum Essential Coverage (MEC) specifications:

(5) If insurance was purchased from the Marketplace, go to the ACA -Marketplace page.

(6-7) If the taxpayer qualifies for an exemption, go to the ACA – Exemptions page.

(8) Shared Responsibility Payment (SRP)

In the Shared Responsibility Payment Worksheet portion, for any checked boxes for the months that the person DID NOT:

  • Have minimal essential coverage (MEC), or
  • Qualify for a coverage exemption,

an SRP amount will be calculated and carried over to Form 1040 line 19.

The SRP increases each year and is the greater of (a) or (b): 2015 2016 2017 2018 
a)     Percentage of household income that is above the tax return filing threshold for the taxpayer’s filing status 2% 2.5% 2.5% 2.5%
b)     The tax family’s flat dollar amount which is the sum of the amount for each adult and for each child in the tax family, limited as noted: Annual amounts

(divide by 12 for monthly amounts)

    Per adult $325.00 $695.00 $695.00 $695.00
    Per child (under age 18 at any time during the month) $162.50 $347.50 $347.50 $347.50
    Limited to $975.00 $2,085.00 $2,085.00 $2,085.00