The IRS in 2018 is going to not accept any electronic tax returns that do not declare if the taxpayer has health insurance coverage during the year. If you file through mail the IRS will then hold your return and not process the filing with no disclosure. During the suspension, the IRS will wait for information on completing the return and any refunds will be delayed when a person files through paper and is not compliant with the new mandate.

As the Trump Administration tries to gouge the Affordable Care Act, the new motive from the IRS is trying to tighten taxpayers compliance and for people that don't have health insurance to pay a fine. 

The penalty for not having health care insurance is the 2.5% of household income or $695 per adult and $347.50 per child under age 18.

The Affordable Care Act requires most people to have some form of health insurance coverage or pay a penalty. An individual, however can decline this coverage under certain circumstances: access to affordable health coverage, homelessness, being evicted, domestic violence, death of a family member, or bankruptcy. 

On Form 1040 of the U.S. Individual Income Tax Return next to "Other Taxes", a taxpayer will need to fill out line 61 to be compliant. Taxpayers that say they do not have health coverage must indicate why they are exempt or must calculate the penalty for not complying with the law. 

If the taxpayer has gone through the In-State Marketplace to gather health care insurance you must place the difference of your received credit on line 46 of the 1095-A. If you had no difference in your credit from the government then you still must attach Form 8962, which gives detail of your year's credit history. If you do not place the difference or attach Form 8962 with Form 1095-A, the IRS will suspend your tax return until information is received-this includes any refund amount possibilities. 

To avoid this delay when filing you should indicate if you and everyone on your return has health insurance, qualifies for exemption or make a shared responsibility payment. This will be the first time the IRS will deny tax returns for not classifying if you do/don't have health insurance.

If you are needing assistance and not wanting to get burdened with the stress of bookkeeping, call us today at 1-800-721-7054 for your accounting needs.

"ACA Information Center for Tax Professionals." Internal Revenue Service, www.irs.gov/tax-professionals/aca-information-center-for-tax-professionals.

Travis Watkins
Senior Tax Attorney
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