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| Tax School Homepage |
| Because of the Affordable Care Act, more Americans have access to coverage that is affordable. However, if there is no coverage available to you and your family that costs less than eight percent of your household income, you can qualify for an exemption. |
| You can learn more at HealthCare.gov about which health insurance options are available to you, how to purchase health insurance coverage, and how to get financial assistance with the cost of insurance. Additionally, an exemption applies to individuals who purchased their insurance through the Marketplace during the initial enrollment period for 2014, which ran from October 1, 2013, through March 31, 2014. Furthermore, a hardship exemption applied from January 1, 2014, until the start of your health care coverage, which, if you enrolled between March 16 and March 31 would generally have been May 1. This hardship exemption may apply if you have been notified that your health insurance policy will not be renewed and you consider the other plans available to you unaffordable. |
| How you get an exemption from the requirement to maintain minimum essential health insurance coverage depends upon the type of exemption for which you are eligible. You can obtain some exemptions only from the Marketplace. You can obtain some other exemptions from the IRS. You can get other exemptions from both the Marketplace and the IRS. |
| The individual shared responsibility provision went into effect in 2014. You won’t need to report minimum essential coverage or exemptions or make any individual shared responsibility payment until you file your 2014 federal income tax return in 2015. If you or any of your dependents don’t have minimum essential coverage and don’t have an exemption, you will need to make an additional shared responsibility payment on your tax return. |
| If you must make an individual shared responsibility payment, the annual payment amount is the greater of a percentage of your household income or a flat dollar amount, but is capped at the national average premium for a bronze level health plan available through the Marketplace. You will owe 1/12th of the annual payment for each month you or your dependents don't have coverage or 1/12th of the annual payment for each month you or your dependents don't have an exemption. |
| For 2014, the annual payment amount for not having essential health insurance coverage is whichever is greater of 1 percent of your household income that is above the tax return filing threshold for your filing status or your family's flat dollar amount, which is $95 per adult and $47.50 per child for a maximum of $285. |
| Extensions of Time to File Your Tax Return |
| You can request an automatic extension of time to file a U.S. individual income tax return by electronically filing Form 4868. You can also request an automatice extension of time to file a U.S. income tax return by paying all or part of your estimated income tax due using a credit or debit card or by using EFTPS. Additionally, you can request an automatic extension of time to file a U.S. individual tax return by filling out Form 4868 and mailing it to the IRS. |
| When, Where, and How to File |
| April 15 of each year is the due date for filing your federal individual income tax return if your tax year ends on December 31. Also, your return is considered filed timely if the envelope is properly addressed and postmarked no later than April 15. If you cannot file by the due date of your return, then you can request an extension of time to file. It is extremely important that you know that an extension of time to file will not extend the time to pay. You must also realize that an extension of time to file will not save you money on interest and late payment penalties. Finally, an extension of time to file is not an extension of time to pay. |
| Copyright © 2014 [Hera's Income Tax School]. All Annual Filing Season Program rights reserved. |
| Revised: 12/14/14 |
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