You must have health insurance coverage or pay the penalty or fine on your federal or state income tax return. However, you can get an exemption for not having qualifying health insurance to avoid this penalty. Some exemptions require an exemption application, while others do not require an application:
You may qualify and claim the exemption on your federal or state income tax return if:
- You were homeless.
- You are a resident of a foreign nation.
- You are a member of a recognized tribe.
- You were facing eviction or foreclosure.
- You are incarcerated (either jailed or detained).
- You just experienced domestic violence.
- You lived oversea for 330 days of the past year.
- You can’t file a tax return because your income is low.
- You are a member of a well-known health care sharing ministry.
- You were determined to be ineligible for Medi-Cal.
- The lowest-priced health insurance coverage costs more than 8.27% of your income.
- You had significant debt from health care expenses that you couldn’t pay.
- You had another hardship.
How And When Do I Apply For An Exemption?
You may apply for some exemptions before you file your federal tax return. You can use the Exemption Screener tool on Healthcare.gov to find exemptions that might suit you.