All 2018-filed tax returns must include health care coverage status

The IRS has announced that the 2018 filing season will be the first year all taxpayers will be required to disclose their health care coverage status while filing their tax returns.

Under the Affordable Care Act, all individuals are required to purchase health insurance unless they qualify for a health coverage exemption or make a shared responsibility payment. For any month the taxpayer, or their tax dependents, are uninsured, they are required to pay a fee under the individual shared responsibility provision.

Though this penalty has been in place since 2014, this is the first year the IRS will not accept any electronic or paper returns without health coverage information. Previously, taxes could be filed even if the filer chose to omit their health care coverage status.

On January 20th 2017, on President Trump’s first day in office, he signed Executive Order 13765 which directed federal departments and agencies to minimize and delay these types of fees and “fiscal burdens.” However, the IRS has stated,

“Legislative provisions of the ACA are still in force until changed by the Congress, and taxpayers remain obligated to follow the law and pay what they may owe.”

To learn more about the health coverage requirements when filing taxes click here. More information about the individual shared responsibility provision can be found here.