Have you filed your taxes yet?
Before filing your taxes for 2016, you absolutely need to read about how President Trump’s executive order may give you some relief when filing your 2016 tax return.
The Affordable Care Act requires individual taxpayers to indicate on their IRS Form 1040 whether they had minimum essential coverage for each month, or have qualified for an exemption. If taxpayers have not done either, they must make an individual shared responsibility payment. Previously, the IRS announced its intention to begin rejecting tax returns during processing in instances where the taxpayer did not provide that information on his or her Form 1040.
Recent Policy Change
A recent executive order, by President Donald Trump, directed federal agencies to exercise all authority and discretion available to them to minimize the economic burden of the ACA. Consistent with that order, the IRS will continue to allow electronic and paper returns to be accepted for processing in instances where a taxpayer does not indicate his or her health coverage status. In other words, when you leave this section blank on your return. Though these returns will not be systematically rejected by the IRS at the time of filing, taxpayers remain required to follow the law, and may receive follow-up questions and correspondence from the IRS after the filing process is completed.
If you’ve not had health insurance in 2016, or you’ve had gaps of coverage larger than 63 days, this executive order allows you to leave this question blank. However, if you answer “No” instead of leaving it blank, you may still be subject to the Individual Shared Reponsibility Payment (ACA penalty).
Interested in reading more on the IRS website? Take a gander