Tax Topic

Health Care, "Minimum Essential Coverage"

The Affordable Care Act (ACA) mandated that most persons have "minimum essential coverage" or to make an individual shared responsibility payment when filing your income tax return. For tax year 2019 and all subsequent years, the shared responsibility payment is reduced to zero (under the Tax Cut and Jobs Act). So, for 2020, you need not make a shared responsibility payment, nor will we be asking you to confirm you have minimum essential health coverage.

However, for 2014-2018, each applicable person listed on your tax return must maintain such coverage. Details on the ACA in general and the meaning of "minimum essential coverage" can be found on the IRS web site at https://www.irs.gov/Affordable-Care-Act/Individuals-and-Families/ACA-Individual-Shared-Responsibility-Provision-Minimum-Essential-Coverage

And, for those prior years, if such coverage was not maintained, the ACA required the assessment of a "shared responsibility payment" which is collected on the Form 1040.

If we are working with you on income tax returns for prior years, we will ask that you complete and sign/date the Minimum Essential Coverage statement and include with the tax source documents you provide to me.





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