Many people already have minimum essential coverage. If you do, you'll simply report your coverage when you file your 2016 tax return in 2017. If you and your family members all had minimum essential coverage for each month of the tax year, you will indicate this on your tax return by checking a box on Form 1040, 1040A or 1040EZ. No further action is required.
If you do have health coverage, you’ll receive one or more forms early next year about the health care coverage that you had or were offered during 2016. You should not attach any of these forms to your tax return but should keep them with your tax records.
Here are some examples of coverage that qualify as minimum essential coverage:
- Group health insurance coverage for employees under
- a governmental plan such as the Federal Employees Health Benefit program
- a plan or coverage offered in the small or large group market within a state
- a grandfathered health plan offered in a group market
- Self-insured group health plan for employees
- COBRA coverage
- Retiree coverage
- Health insurance you purchase directly from an insurance company
- Health insurance you purchase through the Health Insurance Marketplace
- Health insurance provided through a student health plan
- Medicare Part A coverage
- Medicare Advantage plans
- Most Medicaid coverage
- Children’s Health Insurance Program, also known as CHIP
- Most types of TRICARE coverage
- Comprehensive health care programs offered by the Department of Veterans Affairs
- Department of Defense Nonappropriated Fund Health Benefits Program
- Refugee Medical Assistance
- U.S. citizens, who are residents of a foreign country for an entire year, and residents of U.S. territories, are considered to have minimum essential coverage for the year.
If you need health coverage, visit HealthCare.gov to learn about health insurance options that are available for you and your family, how to purchase health insurance, and how you might qualify to get financial assistance with the cost of insurance.
For more information contact L&F Tax & Bookkeeping Services.