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IRS summarizes PPACA individual mandate rules

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This year, most individuals and families should be able to cope with Patient Protection and Affordable Care Act (PPACA) tax reporting requirements by checking the “full-year coverage” box on line 11 of Form 1040-EZ, line 38 of Form 1040A or line 61 of Form 1040.

Taxpayers who cannot check that box will have some extra tax return work to do.

Gladys Nichols, an official at the Internal Revenue Service (IRS), talks about the PPACA “individual shared responsibility” and advance premium tax credit (APTC) tax filing requirements in a guide aimed at agents, brokers and other public exchange helpers.

The guide, posted on a Centers for Medicare & Medicaid Services (CMS) website, provides a rundown of the forms individuals should be getting for the current tax filing season and the forms those people will have to file with the IRS.

People who have what PPACA defines as “minimum essential coverage” (MEC) for the full year and got no APTC help from a PPACA public exchange can get by with simply checking a box.

Any people who used APTC money to pay for PPACA exchange coverage will have to file a tax return to reconcile the tax credit amounts actually paid with the tax credit amounts those people were eligible to receive, even if those people would not normally have to file tax returns, according to Nichols’ guide.

Nichols shows examples of how the IRS would perform reconciliation calculations for several different types of families in several different coverage situations.

A taxpayer who wants some kinds of exemptions from the MEC requirement will have to file a Form 8965 with the IRS. A taxpayer who wants other types of exemptions will have to talk to the public exchange in the taxpayer’s state of residence.

See also: IRS ties up PPACA loose ends