If you qualify for an exemption under the ACA, you won’t be charged the penalty, even if you don’t have coverage. You could be exempt if:
- The most affordable coverage costs more than 8% of your household income.
- You were uninsured for less than three months of the year.
- You are exempt from filing a tax return because your income is too low.
- You are Native American or eligible for health services through an Indian Health Services provider.
- Your religion objects to the use of insurance.
- You’re in prison.
- You belong to a health-care sharing ministry.
- You have been abroad for more than one year.
- You qualify for a hardship exemption due to an issue such as homelessness, bankruptcy, eviction and similarly trying circumstances listed here.
If you believe you qualify for an exemption, you can claim it when you file your tax return utilizing IRS Form 8965.
