Affordable Care Act (ACA) Reporting Enforcment

  • On Friday, October 13, 2017 the IRS issued a statement on Health Care reporting for the upcoming tax season. When taxpayers file their tax returns in 2018 the IRS will not accept filed tax returns that does not include the required information for healthcare coverage. This will be the first year that the IRS will not accept returns that omit this return.

    Taxpayers that file returns with this information omitted will find the processing of their return delayed and if a refund is due, that will be delayed as well.

    It is required, although not always previously enforced, that taxpayers indicate whether they had coverage, had an exemption or will make a shared responsibility payment.

    The penalty for a family not having health insurance in 2017 can be as high as $2,085 or 2.5% of your income whichever is higher. There are exemptions and the penalty is calculated based on each month you, your spouse or dependent child did not have insurance.