Form 8965, Health Coverage Exemptions

Form 8965, Health Coverage Exemptions, is an IRS tax form used to claim exemptions from the individual shared responsibility provision of the Affordable Care Act (ACA). Key points include:

1. Used for tax years 2014 through 2018

2. Reports months individuals were exempt from health coverage requirements

3. Lists various exemption types, such as:

   – Income below filing threshold

   – Short coverage gap

   – Hardship exemptions

   – Membership in certain groups (e.g., religious sects)

4. Requires specific codes for each exemption type

5. Attached to Form 1040 when filing taxes

This form was crucial for avoiding penalties for not having qualifying health coverage under the ACA’s individual mandate. However, starting with the 2019 tax year, the federal penalty for not having health insurance was reduced to zero, making Form 8965 generally unnecessary for federal tax returns. Some states may still require similar information for state-level individual mandates. Always consult current IRS guidelines or a tax professional for the most up-to-date information on health coverage reporting requirements.