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Health Insurance and Your Taxes: 3 Things You Need to Know

The IRS might delay your tax refund if you don't surrender your health insurance info on your tax return. Find out what you need to do.
Monday, 11 February 2019
Health Insurance and Taxes Health Insurance and Taxes

Whew! We survived the 2018 Arizona health insurance open enrollment.

Now that the open enrollment is behind us, our attention can now shift to that one topic we all love - Taxes!!

Did you know the Internal Revenue Service (IRS) requires you to declare your Affordable Care Act (ACA) status when you file your tax return?

That’s right, the ACA is in cahoots with the IRS.

To keep the public informed about it’s collaborating with the ACA, the IRS makes occasional announcements and offers a What’s Trending page with FAQs on the ACA.

You can visit those pages to get the info yourself, or you can keep reading to get a quick summary of what’s new at the IRS about the ACA and your Arizona health insurance coverage.


Health Insurance Reporting Requirement - Guidance form the IRS

Starting with the 2017 tax filing season, you - the taxpayer - must show whether you 1) had health coverage, 2) qualify for an exemption or 3) will make a shared responsibility payment.

If you file electronically the IRS will reject returns that don’t address your health insurance status. If you file a paper return and don’t address ACA, the IRS may suspend your tax return pending the receipt of your ACA information.

In no uncertain language, the IRS is clear that failing to give ACA health insurance status on your tax return can cause a delay in your refund.

Here again is your health insurance info the IRS wants:

  • Answer whether you and everyone on your return had health insurance coverage, or
  • Whether you qualified for an exemption from the health insurance requirement, or
  • Whether you are making an individual shared responsibility payment.  

If you don’t remember revealing ACA info when you filed your 2016 tax return it’s because the 2017 tax year is the first time the IRS will not accept tax returns that do not include the above information.

Do you need to file a return just to give your health insurance status?

As just described above, the ACA requires you and each member of your family have minimum essential coverage, qualify for an exemption, or make an individual shared responsibility payment.

But what if you’re not filing a tax return?  Do you still need to file just to give the ACA health insurance coverage info?

The answer is no.  You need not file a tax return solely to report your ACA health insurance coverage or to claim an exemption. So if for lucky some reason you are not required to file a 2017 tax return and don’t want to file a return then you need not worry about giving your ACA info to the IRS.

Have You Determined if You are Eligible for the Premium Tax Credit?

The premium tax credit assists individuals and families cover the cost of health insurance premiums.

This goal of the premium tax credit is to make health insurance more affordable for individuals and families.  And like everything associated with tax credits, you must meet requirements to get the credit.

First off, you must buy your Arizona health insurance on the ACA Marketplace to be eligible.  So if you didn’t buy on an exchange you can stop reading now.

If you purchased health insurance on the exchange you can discover if you are eligible for the premium tax credit by answering the yes-or-no questions and following the arrows in the following chart.

Premium Tax Credit Chart

We obtained the above chart from the IRS’s ACA Individuals and Families page.

If you hate charts or can’t read the chart because you are reading this on a mobile device, you can follow this link to view the questions in text format.


This blog is for health insurance info and is not a tax advice blog, so you should consult with your tax professional for guidance to optimize your taxes.

Do you need group health or Medicare supplement insurance pricing info?

Are you an Arizona business owner or benefits manager that needs help getting Arizona group health insurance quotes?  Or did you or someone you know qualify for Medicare and are shopping for Arizona Medicare supplemental insurance?

If you need group health or Medicare supplement insurance in Arizona, please call Jerry Anderson for answers to your questions and to receive free health insurance quotes.

Call Jerry (480) 607-7049

Or click to contact Jerry by email to schedule a free consultation.

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