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IRS.gov Website
Rev. date: 5/10/2018


Individual Shared Responsibility Provision

Tax Topic 561
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The individual shared responsibility provision requires that, for each month during the year, you and all members of your family:
You'll report MEC, claim exemptions, or make any individual shared responsibility payment when you file your federal income tax return. You're responsible for reporting these items for yourself and any individuals whom you may claim as dependents for federal tax purposes.


MEC

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MEC includes many types of health benefits coverage, including:
Coverage for one day in a month under any program that's MEC satisfies the requirement to have MEC for that month. Many people already have qualifying health coverage and don't need to do anything more than maintain that coverage in 2017 and report it on their tax returns filed in 2018. If you and all your dependents have full-year coverage, check the full-year coverage box on your tax return. Otherwise, see Form 8965, Health Coverage Exemptions, and the Instructions 8965, Health Coverage Exemptions (and instructions for figuring your shared responsibility payment).


Exemptions

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There are several exemptions that may be available to you or a member of your family. See the Instructions 8965 for a complete list. Some exemptions from the individual shared responsibility provision include exemptions for:
Some exemptions are exclusively granted by the Marketplace, some are claimed only on tax returns, and some may be obtained from the Marketplace or claimed on tax returns. Whether you must first apply for an exemption from the Marketplace or may wait to claim the exemption when you file your income tax return depends on the type of exemption for which you're eligible.
In general, all exemptions must be reported to the IRS on Form 8965. Use Form 8965 to report an exemption, the names, and taxpayer identification numbers of each individual in your family claiming the exemption, and the months during the year for which you're claiming the exemption. Attach this form to your Form 1040, Form 1040-A, U.S. Individual Income Tax Return, or Form 1040-EZ, Income Tax Return for Single and Joint Filers With No Dependents.


Making an Individual Shared Responsibility Payment

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The amount of the individual shared responsibility payment is based on the number of months that you don't have coverage or an exemption.
For 2017, the annual individual shared responsibility payment is the greater of:
The maximum amount you pay can't be more than the national average premium for a bronze level health plan available through the Marketplace in 2017 that would cover all members of your family for whom a payment is owed. See Revenue Procedure 2017-48 for the 2017 national average premium for a bronze level health plan available through the Marketplace.
If you're required to make an individual shared responsibility payment for tax year 2017, report the amount on line 61 of Form 1040, line 38 of Form 1040A, or line 11 of Form 1040EZ. For more information, see Am I Eligible for a Coverage Exemption or Required to Make an Individual Shared Responsibility Payment?


Additional Information

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For more information about these and other tax provisions included in the Affordable Care Act, see our Affordable Care Act (ACA) Tax Provisions page. Additional information about exemptions is available on the Individual Shared Responsibility Provision page. This includes a chart, IRS You Tube video – Individual Shared Responsibilities - Overview, and Questions and Answers.
Reminder from the IRS: Taxpayers who need health coverage should visit HealthCare.gov to learn about health insurance options that are available for them and their family, how to purchase health insurance, and how they might qualify to get financial assistance with the cost of insurance.