Tax Law and News Centerpiece Provision of the ACA – The Premium Tax Credit Read the Article Open Share Drawer Share this:Click to share on Twitter (Opens in new window)Click to share on Facebook (Opens in new window)Click to share on LinkedIn (Opens in new window) Written by Mike D'Avolio, CPA, JD Modified Oct 17, 2017 1 min read If your clients or their family members meet certain criteria, they’ll be exempt from the Shared Responsibility Payment (Affordable Care Act penalty) and won’t have to obtain coverage. Depending on the type of exemption you are claiming, there are a wide variety of exemptions available from either the Marketplace (Health Insurance Exchange) or IRS. It’s estimated that as many as 23 million (or 16 percent) taxpayers may qualify for an exemption. Exemptions granted by the Marketplace should be obtained at the earliest opportunity, while exemptions from the IRS can only be claimed on your clients’ tax returns. Exemptions are allowed by the government as long as the circumstances that lead to the exemption persist. All exemptions need to be reported on a new Form 8965 and attached to the return. Types of Exemptions The following table from Form 8965 instructions provides a short description of each exemption type available in tax year 2014. It also indicates whether the exemption is granted by the Marketplace and/or claimed on the tax return. If an exemption can be obtained from either source, the government recommends that clients claim it on the tax return because the process is more efficient. If the Marketplace grants them an exemption, they will provide an Exemption Certificate Number (ECN) that will be entered on Form 8965 to prove to the IRS that the exemption is valid. Taxpayers should enter “pending” on Form 8965 if they have not received an ECN by the time they file the return. Next Post Congress Passes Surface Transportation and Veterans Health Care Choice Improvement… Written by Mike D'Avolio, CPA, JD Mike D’Avolio, CPA, JD, is a tax law specialist for Intuit® ProConnect™ Group, where he has worked since 1987. He monitors legislative and regulatory activity, serves as a government liaison, circulates information to employees and customers, analyzes and tests software, trains employees and customers, and serves as a public relations representative. More from Mike D'Avolio, CPA, JD Comments are closed. Browse Related Articles Tax Law and News Tax benefits: Accommodations for people with disabiliti… Practice Management Consultant Spotlight: John Trammell Practice Management Why you should care about green cloud computing Practice Management Consultant spotlight: Steven G. Advisory Services Understanding your client’s relationship with mon… Practice Management Consultant spotlight: Jonathan Lovitt Practice Management ProConnect™ Tax spotlight: Megan Leesley, CPA Tax Law and News Boo! Extension season horror stories Tax Law and News Tax relief for victims of Hurricane Milton Practice Management Tax Season Readiness virtual conference—Nov. 13-14