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Benefits Bulletin: Complying with the Affordable Care Act

The individual shared responsibility provision of the Affordable Care Act requires taxpayers to do one of the following:

  • Have qualifying health coverage called minimum essential coverage (as verified by the 1095-C form)
  • Qualify for a health coverage exemption
  • Make a shared responsibility payment with their federal income tax return for the months they were without coverage or an exemption.

For tax year 2017, the IRS will not consider a return complete and accurate if the taxpayer does not report full-year coverage, claim a coverage exemption, or report a shared responsibility payment on the tax return.

In January, the State of Maryland Employee Benefits Division will mail the 1095-C form to those individuals covered under the State’s health benefit plans during 2017. While individuals are still not required to attach the 1095-C form to their 2017 tax return, if they do not check the “full year” coverage box, the tax form will be deemed incomplete.

Most taxpayers will have qualifying health coverage for all 12 months in the year, and will check the “full-year coverage” box on their tax return. Taxpayers who do not have full-year coverage will indicate whether they qualify for a coverage exemption or owe a shared responsibility payment.

If you have questions about filing your tax return, please consult with your tax advisor.