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Form 1040a

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Form 1040a

Form 1040a 30. Form 1040a   How To Figure Your Tax Table of Contents Introduction Figuring Your Tax Alternative Minimum Tax (AMT) Tax Figured by IRSFiling the Return Introduction After you have figured your income and deductions as explained in Parts One through Five, your next step is to figure your tax. Form 1040a This chapter discusses: The general steps you take to figure your tax, An additional tax you may have to pay called the alternative minimum tax (AMT), and The conditions you must meet if you want the IRS to figure your tax. Form 1040a Figuring Your Tax Your income tax is based on your taxable income. Form 1040a After you figure your income tax and AMT, if any, subtract your tax credits and add any other taxes you may owe. Form 1040a The result is your total tax. Form 1040a Compare your total tax with your total payments to determine whether you are entitled to a refund or if you must make a payment. Form 1040a This section provides a general outline of how to figure your tax. Form 1040a You can find step-by-step directions in the Instructions for Forms 1040EZ, 1040A, and 1040. Form 1040a If you are unsure of which tax form you should file, see Which Form Should I Use? in chapter 1. Form 1040a Tax. Form 1040a   Most taxpayers use either the Tax Table or the Tax Computation Worksheet to figure their income tax. Form 1040a However, there are special methods if your income includes any of the following items. Form 1040a A net capital gain. Form 1040a (See chapter 16. Form 1040a ) Qualified dividends taxed at the same rates as a net capital gain. Form 1040a (See chapters 8 and 16. Form 1040a ) Lump-sum distributions. Form 1040a (See chapter 10. Form 1040a ) Farming or fishing income. Form 1040a (See Schedule J (Form 1040), Income Averaging for Farmers and Fishermen. Form 1040a ) Unearned income over $2,000 for certain children. Form 1040a (See chapter 31. Form 1040a ) Parents' election to report child's interest and dividends. Form 1040a (See chapter 31. Form 1040a ) Foreign earned income exclusion or the housing exclusion. Form 1040a (See Form 2555, Foreign Earned Income, or Form 2555-EZ, Foreign Earned Income Exclusion, and the Foreign Earned Income Tax Worksheet in the Form 1040 instructions. Form 1040a ) Credits. Form 1040a   After you figure your income tax and any AMT (discussed later), determine if you are eligible for any tax credits. Form 1040a Eligibility information for these tax credits is discussed in chapters 32 through 37 and your form instructions. Form 1040a The following table lists the credits you may be able to subtract from your tax and shows where you can find more information on each credit. Form 1040a CREDITS For information on: See  chapter: Adoption 37 Alternative motor vehicle 37 Alternative fuel vehicle refueling  property 37 Child and dependent care 32 Child tax 34 Credit to holders of tax credit  bonds 37 Education 35 Elderly or disabled 33 Electric vehicle 37 Foreign tax 37 Mortgage interest 37 Prior year minimum tax 37 Residential energy 37 Retirement savings contributions 37   Some credits (such as the earned income credit) are not listed because they are treated as payments. Form 1040a See Payments , later. Form 1040a   There are other credits that are not discussed in this publication. Form 1040a These include the following credits. Form 1040a General business credit, which is made up of several separate business-related credits. Form 1040a These generally are reported on Form 3800, General Business Credit, and are discussed in chapter 4 of Publication 334, Tax Guide for Small Business. Form 1040a Renewable electricity, refined coal, and Indian coal production credit for electricity and refined coal produced at facilities placed in service after October 22, 2004 (after October 2, 2008, for electricity produced from marine and hydrokinetic renewables), and Indian coal produced at facilities placed in service after August 8, 2005. Form 1040a See Form 8835, Part II. Form 1040a Work opportunity credit. Form 1040a See Form 5884. Form 1040a Credit for employer social security and Medicare taxes paid on certain employee tips. Form 1040a See Form 8846. Form 1040a Other taxes. Form 1040a   After you subtract your tax credits, determine whether there are any other taxes you must pay. Form 1040a This chapter does not explain these other taxes. Form 1040a You can find that information in other chapters of this publication and your form instructions. Form 1040a See the following table for other taxes you may need to add to your income tax. Form 1040a OTHER TAXES For information on: See  chapter: Additional taxes on qualified retirement plans and IRAs 10, 17 Household employment taxes 32 Recapture of an education credit 35 Social security and Medicare tax on wages 5 Social security and Medicare tax on tips 6 Uncollected social security and Medicare tax on tips 6   You also may have to pay AMT (discussed later in this chapter). Form 1040a   There are other taxes that are not discussed in this publication. Form 1040a These include the following items. Form 1040a Self-employment tax. Form 1040a You must figure this tax if either of the following applies to you (or your spouse if you file a joint return). Form 1040a Your net earnings from self-employment from other than church employee income were $400 or more. Form 1040a The term “net earnings from self-employment” may include certain nonemployee compensation and other amounts reported to you on Form 1099-MISC, Miscellaneous Income. Form 1040a If you received a Form 1099-MISC, see the Instructions for Recipient on the back. Form 1040a Also see the Instructions for Schedule SE (Form 1040), Self-Employment Tax; and Publication 334, Tax Guide for Small Business. Form 1040a You had church employee income of $108. Form 1040a 28 or more. Form 1040a Additional Medicare Tax. Form 1040a Beginning in 2013, you may be subject to a 0. Form 1040a 9% Additional Medicare Tax that applies to Medicare wages, Railroad Retirement Act compensation, and self-employment income over a threshold based on your filing status. Form 1040a For more information, see the Instructions for Form 1040, line 60 and Form 8959. Form 1040a Net Investment Income Tax (NIIT). Form 1040a Beginning in 2013, you may be subject to Net Investment Income Tax (NIIT). Form 1040a NIIT is a 3. Form 1040a 8% tax on the lesser of net investment income or the excess of your modified adjusted gross income over a threshold amount. Form 1040a For more information, see the Instructions for Form 1040, line 60 and Form 8960. Form 1040a Recapture taxes. Form 1040a You may have to pay these taxes if you previously claimed an investment credit, a low-income housing credit, a new markets credit, a qualified plug-in electric drive motor vehicle credit, an alternative motor vehicle credit, a credit for employer-provided child care facilities, an Indian employment credit, or other credits listed in the instructions for Form 1040, line 60. Form 1040a For more information, see the instructions for Form 1040, line 60. Form 1040a Section 72(m)(5) excess benefits tax. Form 1040a If you are (or were) a 5% owner of a business and you received a distribution that exceeds the benefits provided for you under the qualified pension or annuity plan formula, you may have to pay this additional tax. Form 1040a See Tax on Excess Benefits in chapter 4 of Publication 560, Retirement Plans for Small Business. Form 1040a Uncollected social security and Medicare tax on group-term life insurance. Form 1040a If your former employer provides you with more than $50,000 of group-term life insurance coverage, you must pay the employee part of social security and Medicare taxes on those premiums. Form 1040a The amount should be shown in box 12 of your Form W-2 with codes M and N. Form 1040a Tax on golden parachute payments. Form 1040a This tax applies if you received an “excess parachute payment” (EPP) due to a change in a corporation's ownership or control. Form 1040a The amount should be shown in box 12 of your Form W-2 with code K. Form 1040a See the instructions for Form 1040, line 60. Form 1040a Tax on accumulation distribution of trusts. Form 1040a This applies if you are the beneficiary of a trust that accumulated its income instead of distributing it currently. Form 1040a See Form 4970 and its instructions. Form 1040a Additional tax on HSAs or MSAs. Form 1040a If amounts contributed to, or distributed from, your health savings account or medical savings account do not meet the rules for these accounts, you may have to pay additional taxes. Form 1040a See Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans; Form 8853, Archer MSAs and Long-Term Care Insurance Contracts; Form 8889, Health Savings Accounts (HSAs); and Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts. Form 1040a Additional tax on Coverdell ESAs. Form 1040a This applies if amounts contributed to, or distributed from, your Coverdell ESA do not meet the rules for these accounts. Form 1040a See Publication 970, Tax Benefits for Education, and Form 5329. Form 1040a Additional tax on qualified tuition programs. Form 1040a This applies to amounts distributed from qualified tuition programs that do not meet the rules for these accounts. Form 1040a See Publication 970 and Form 5329. Form 1040a Excise tax on insider stock compensation from an expatriated corporation. Form 1040a You may owe a 15% excise tax on the value of nonstatutory stock options and certain other stock-based compensation held by you or a member of your family from an expatriated corporation or its expanded affiliated group in which you were an officer, director, or more-than-10% owner. Form 1040a For more information, see the instructions for Form 1040, line 60. Form 1040a Additional tax on income you received from a nonqualified deferred compensation plan that fails to meet certain requirements. Form 1040a This income should be shown in Form W-2, box 12, with code Z, or in Form 1099-MISC, box 15b. Form 1040a For more information, see the instructions for Form 1040, line 60. Form 1040a Interest on the tax due on installment income from the sale of certain residential lots and timeshares. Form 1040a For more information, see the instructions for Form 1040, line 60. Form 1040a Interest on the deferred tax on gain from certain installment sales with a sales price over $150,000. Form 1040a For more information, see the instructions for Form 1040, line 60. Form 1040a Repayment of first-time homebuyer credit. Form 1040a For more information, see Form 5405, Repayment of the First-Time Homebuyer Credit, and its instructions. Form 1040a Also see the instructions for Form 1040, line 59b. Form 1040a Payments. Form 1040a   After you determine your total tax, figure the total payments you have already made for the year. Form 1040a Include credits that are treated as payments. Form 1040a This chapter does not explain these payments and credits. Form 1040a You can find that information in other chapters of this publication and your form instructions. Form 1040a See the following table for amounts you can include in your total payments. Form 1040a PAYMENTS For information on: See  chapter: Child tax credit (additional) 34 Earned income credit 36 Estimated tax paid 4 Excess social security   and RRTA tax withheld 37 Federal income tax withheld 4 Health coverage tax credit 37 Credit for tax on   undistributed capital gain 37 Tax paid with extension 1   Another credit that is treated as a payment is the credit for federal excise tax paid on fuels. Form 1040a This credit is for persons who have a nontaxable use of certain fuels, such as diesel fuel and kerosene. Form 1040a It is claimed on Form 1040, line 70. Form 1040a See Form 4136, Credit for Federal Tax Paid on Fuels. Form 1040a Refund or balance due. Form 1040a   To determine whether you are entitled to a refund or whether you must make a payment, compare your total payments with your total tax. Form 1040a If you are entitled to a refund, see your form instructions for information on having it directly deposited into one or more of your accounts, or to purchase U. Form 1040a S. Form 1040a savings bonds instead of receiving a paper check. Form 1040a Alternative Minimum Tax (AMT) This section briefly discusses an additional tax you may have to pay. Form 1040a The tax law gives special treatment to some kinds of income and allows special deductions and credits for some kinds of expenses. Form 1040a Taxpayers who benefit from this special treatment may have to pay at least a minimum amount of tax through an additional tax called AMT. Form 1040a You may have to pay the AMT if your taxable income for regular tax purposes, combined with certain adjustments and tax preference items, is more than a certain amount. Form 1040a See Form 6251, Alternative Minimum Tax — Individuals. Form 1040a Adjustments and tax preference items. Form 1040a   The more common adjustments and tax preference items include: Addition of personal exemptions, Addition of the standard deduction (if claimed), Addition of itemized deductions claimed for state and local taxes, certain interest, most miscellaneous deductions, and part of medical expenses, Subtraction of any refund of state and local taxes included in gross income, Changes to accelerated depreciation of certain property, Difference between gain or loss on the sale of property reported for regular tax purposes and AMT purposes, Addition of certain income from incentive stock options, Change in certain passive activity loss deductions, Addition of certain depletion that is more than the adjusted basis of the property, Addition of part of the deduction for certain intangible drilling costs, and Addition of tax-exempt interest on certain private activity bonds. Form 1040a More information. Form 1040a   For more information about the AMT, see the instructions for Form 6251. Form 1040a Tax Figured by IRS If you file by April 15, 2014, you can have the IRS figure your tax for you on Form 1040EZ, Form 1040A, or Form 1040. Form 1040a If the IRS figures your tax and you paid too much, you will receive a refund. Form 1040a If you did not pay enough, you will receive a bill for the balance. Form 1040a To avoid interest or the penalty for late payment, you must pay the bill within 30 days of the date of the bill or by the due date for your return, whichever is later. Form 1040a The IRS can also figure the credit for the elderly or the disabled and the earned income credit for you. Form 1040a When the IRS cannot figure your tax. Form 1040a   The IRS cannot figure your tax for you if any of the following apply. Form 1040a You want your refund directly deposited into your accounts. Form 1040a You want any part of your refund applied to your 2014 estimated tax. Form 1040a You had income for the year from sources other than wages, salaries, tips, interest, dividends, taxable social security benefits, unemployment compensation, IRA distributions, pensions, and annuities. Form 1040a Your taxable income is $100,000 or more. Form 1040a You itemize deductions. Form 1040a You file any of the following forms. Form 1040a Form 2555, Foreign Earned Income. Form 1040a Form 2555-EZ, Foreign Earned Income Exclusion. Form 1040a Form 4137, Social Security and Medicare Tax on Unreported Tip Income. Form 1040a Form 4970, Tax on Accumulation Distribution of Trusts. Form 1040a Form 4972, Tax on Lump-Sum Distributions. Form 1040a Form 6198, At-Risk Limitations. Form 1040a Form 6251, Alternative Minimum Tax—Individuals. Form 1040a Form 8606, Nondeductible IRAs. Form 1040a Form 8615, Tax for Certain Children Who Have Unearned Income. Form 1040a Form 8814, Parents' Election To Report Child's Interest and Dividends. Form 1040a Form 8839, Qualified Adoption Expenses. Form 1040a Form 8853, Archer MSAs and Long-Term Care Insurance Contracts. Form 1040a Form 8889, Health Savings Accounts (HSAs). Form 1040a Form 8919, Uncollected Social Security and Medicare Tax on Wages. Form 1040a Filing the Return After you complete the line entries for the tax form you are filing, fill in your name and address. Form 1040a Enter your social security number in the space provided. Form 1040a If you are married, enter the social security numbers of you and your spouse even if you file separately. Form 1040a Sign and date your return and enter your occupation(s). Form 1040a If you are filing a joint return, both you and your spouse must sign it. Form 1040a Enter your daytime phone number in the space provided. Form 1040a This may help speed the processing of your return if we have a question that can be answered over the phone. Form 1040a If you are filing a joint return, you may enter either your or your spouse's daytime phone number. Form 1040a If you want to allow a friend, family member, or any other person you choose to discuss your 2013 tax return with the IRS, check the “Yes” box in the “Third party designee” area on your return. Form 1040a Also enter the designee's name, phone number, and any five digits the designee chooses as his or her personal identification number (PIN). Form 1040a If you check the “Yes” box, you, and your spouse if filing a joint return, are authorizing the IRS to call the designee to answer any questions that may arise during the processing of your return. Form 1040a Fill in and attach any schedules and forms asked for on the lines you completed to your paper return. Form 1040a Attach a copy of each of your Forms W-2 to your paper return. Form 1040a Also attach to your paper return any Form 1099-R you received that has withholding tax in box 4. Form 1040a Mail your return to the Internal Revenue Service Center for the area where you live. Form 1040a A list of Service Center addresses is in the instructions for your tax return. Form 1040a Form 1040EZ Line Entries Read lines 1 through 8b and fill in the lines that apply to you. Form 1040a Do not complete lines 9 through 12. Form 1040a If you are filing a joint return, use the space to the left of line 6 to separately show your taxable income and your spouse's taxable income. Form 1040a Payments. Form 1040a   Enter any federal income tax withheld on line 7. Form 1040a Federal income tax withheld is shown on Form W-2, box 2, or Form 1099, box 4. Form 1040a Earned income credit. Form 1040a   If you can take this credit, as discussed in chapter 36, the IRS can figure it for you. Form 1040a Enter “EIC” in the space to the left of line 8a. Form 1040a Enter the nontaxable combat pay you elect to include in earned income on line 8b. Form 1040a   If your credit for any year after 1996 was reduced or disallowed by the IRS, you may also have to file Form 8862, Information To Claim Earned Income Credit After Disallowance, with your return. Form 1040a For details, see the Form 1040EZ Instructions. Form 1040a Form 1040A Line Entries Read lines 1 through 27 and fill in the lines that apply to you. Form 1040a If you are filing a joint return, use the space to the left of the entry space for line 27 to separately show your taxable income and your spouse's taxable income. Form 1040a Do not complete line 28. Form 1040a Complete lines 29 through 33 and 36 through 40 if they apply to you. Form 1040a However, do not fill in lines 30 and 38a if you want the IRS to figure the credits shown on those lines. Form 1040a Also, enter any write-in information that applies to you in the space to the left of line 41. Form 1040a Do not complete lines 34, 35, and 42 through 46. Form 1040a Payments. Form 1040a   Enter any federal income tax withheld that is shown on Form W-2, box 2, or Form 1099, box 4, on line 36. Form 1040a Enter any estimated tax payments you made on line 37. Form 1040a Credit for child and dependent care expenses. Form 1040a   If you can take this credit, as discussed in chapter 32, complete Form 2441, Child and Dependent Care Expenses, and attach it to your return. Form 1040a Enter the amount of the credit on line 29. Form 1040a The IRS will not figure this credit. Form 1040a Credit for the elderly or the disabled. Form 1040a   If you can take this credit, as discussed in chapter 33, the IRS can figure it for you. Form 1040a Enter “CFE” in the space to the left of line 30 and attach Schedule R (Form 1040A or 1040), Credit for the Elderly or the Disabled, to your paper return. Form 1040a On Schedule R (Form 1040A or 1040), check the box in Part I for your filing status and age. Form 1040a Complete Part II and Part III, lines 11 and 13, if they apply. Form 1040a Earned income credit. Form 1040a   If you can take this credit, as discussed in chapter 36, the IRS can figure it for you. Form 1040a Enter “EIC” to the left of the entry space for line 38a. Form 1040a Enter the nontaxable combat pay you elect to include in earned income on line 38b. Form 1040a    If you have a qualifying child, you must fill in Schedule EIC (Form 1040A or 1040), Earned Income Credit, and attach it to your paper return. Form 1040a If you do not provide the child's social security number on Schedule EIC, line 2, the credit will be reduced or disallowed unless the child was born and died in 2013. Form 1040a   If your credit for any year after 1996 was reduced or disallowed by the IRS, you may also have to file Form 8862 with your return. Form 1040a For details, see the Form 1040A Instructions. Form 1040a Form 1040 Line Entries Read lines 1 through 43 and fill in the lines that apply to you. Form 1040a Do not complete line 44. Form 1040a If you are filing a joint return, use the space under the words “Adjusted Gross Income” on the front of your return to separately show your taxable income and your spouse's taxable income. Form 1040a Read lines 45 through 71. Form 1040a Fill in the lines that apply to you, but do not fill in lines 54, 61, and 72. Form 1040a Also, do not complete line 55 and lines 73 through 77. Form 1040a Do not fill in line 53, box “c,” if you are completing Schedule R (Form 1040A or 1040), or line 64a if you want the IRS to figure the credits shown on those lines. Form 1040a Payments. Form 1040a   Enter any federal income tax withheld that is shown on Form W-2, box 2, or Form 1099, box 4, on line 62. Form 1040a Enter any estimated tax payments you made on line 63. Form 1040a Credit for child and dependent care expenses. Form 1040a   If you can take this credit, as discussed in chapter 32, complete Form 2441 and attach it to your paper return. Form 1040a Enter the amount of the credit on line 48. Form 1040a The IRS will not figure this credit. Form 1040a Credit for the elderly or the disabled. Form 1040a   If you can take this credit, as discussed in chapter 33, the IRS can figure it for you. Form 1040a Enter “CFE” on the line next to line 53, check box “c,” and attach Schedule R (Form 1040A or 1040) to your paper return. Form 1040a On Schedule R (Form 1040A or 1040), check the box in Part I for your filing status and age. Form 1040a Complete Part II and Part III, lines 11 and 13, if they apply. Form 1040a Earned income credit. Form 1040a   If you can take this credit, as discussed in chapter 36, the IRS can figure it for you. Form 1040a Enter “EIC” on the dotted line next to Form 1040, line 64a. Form 1040a Enter the nontaxable combat pay you elect to include in earned income on line 64b. Form 1040a   If you have a qualifying child, you must fill in Schedule EIC (Form 1040A or 1040), Earned Income Credit, and attach it to your paper return. Form 1040a If you do not provide the child's social security number on Schedule EIC, line 2, the credit will be reduced or disallowed unless the child was born and died in 2013. Form 1040a   If your credit for any year after 1996 was reduced or disallowed by the IRS, you may also have to file Form 8862 with your return. Form 1040a For details, see the Form 1040 Instructions. Form 1040a Prev  Up  Next   Home   More Online Publications
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The Individual Shared Responsibility Provision

Under the Affordable Care Act, the Federal government, State governments, insurers, employers, and individuals share the responsibility for health insurance coverage beginning in 2014. Many people already have qualifying health insurance coverage (called minimum essential coverage) and do not need to do anything more than maintain that coverage.

The individual shared responsibility provision requires you and each member of your family to either:

  • Have minimum essential coverage, or
  • Have an exemption from the responsibility to have minimum essential coverage, or
  • Make a shared responsibility payment when you file your 2014 federal income tax return in 2015.  

You will report minimum essential coverage, report exemptions, or make any individual shared responsibility payment when you file your 2014 federal income tax return in 2015.

Minimum Essential Coverage

 

If you and your family need to acquire minimum essential coverage, you may have several options.  They include:

  • Health insurance coverage provided by your employer,
  • Health insurance purchased through the Health Insurance Marketplace in the area where you live, where you may qualify for financial assistance,
  • Coverage provided under a government-sponsored program for which you are eligible (including Medicare, Medicaid, and health care programs for veterans),
  • Health insurance purchased directly from an insurance company, and
  • Other health insurance coverage that is recognized by the Department of Health & Human Services as minimum essential coverage.

U.S. citizens who are residents of a foreign country for an entire year, and residents of U.S. territories, are deemed to have minimum essential coverage. See questions 11 and 12 of our Questions and Answers for more information.  

For purposes of the individual shared responsibility payment, you are considered to have minimum essential coverage for the entire month as long as you have minimum essential coverage for at least one day during that month. For example, if you start a new job on June 26 and are covered under your employer’s health coverage starting on that day, you’re treated as having coverage for the entire month of June. Similarly, if you’re eligible for an exemption for any one day of a month, you’re treated as exempt for the entire month.

For more information about minimum essential coverage, check this minimum essential coverage chart and see questions 14-20 of our Questions and Answers.  

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. If you purchase health insurance through the Marketplace and you meet certain requirements, you may be eligible for a premium tax credit to help pay your premiums. Learn more about the premium tax credit. The deadline for the initial open enrollment period is March 31, 2014. You may also qualify for a special enrollment period (e.g., you move to a different state). See HealthCare.gov to learn about special enrollment periods.

Exemptions

 

You may be exempt from the requirement to maintain minimum essential coverage and thus will not have to make a shared responsibility payment when you file your 2014 federal income tax return in 2015, if you meet certain criteria.

You may be exempt if you:

  • Have no affordable coverage options because the minimum amount you must pay for the annual premiums is more than eight percent of your household income,
  • Have a gap in coverage for less than three consecutive months, or
  • Qualify for an exemption for one of several other reasons, including having a hardship that prevents you from obtaining coverage, or belonging to a group explicitly exempt from the requirement.

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.  

An exemption applies to individuals who purchase their insurance through the Marketplace during the initial enrollment period for 2014, which runs through March 31, 2014. This hardship exemption will apply from January 1, 2014, until the start of your health care coverage, which if you enroll between March 16 and March 31 would generally be May 1. (See this HHS Question and Answer  for more information.) Another 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. (See this HHS guidance and Questions and Answers  for more information.)

How you get an exemption depends upon the type of exemption for which you are eligible. You can obtain some exemptions only from the Marketplace, others only from the IRS, and yet others from either the Marketplace or the IRS. 

Learn more about exemptions in this chart and in questions 21-24 of our Questions and Answers. Also, see Healthcare.gov for more information on hardship exemptions.

Reporting Coverage or Exemptions

 

The individual shared responsibility provision goes 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. Information will be made available later about how to report your coverage or exemption (or make a payment) on your 2014 income tax return.

Making a Payment

 

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 individual shared responsibility payment on your tax return. It is important to remember that choosing to make the individual shared responsibility payment instead of purchasing minimum essential coverage means you will also have to pay the entire cost of all your medical care. You won't be protected from the kind of very high medical bills that can sometimes lead to bankruptcy.

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 dependent(s) don’t have either coverage or an exemption.

For 2014, the annual payment amount is:

  • The 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, limited to a family maximum of $285,
  • But capped at the cost of the national average premium for a bronze level health plan available through the Marketplace in 2014.

Check out these basic examples of the payment calculation and the federal tax filing requirement thresholds. For more detailed examples, see the individual shared responsibility provision final regulations.

The percentages and flat dollar amounts increase over the first three years. In 2015, the income percentage increases to 2 percent of household income and the flat dollar amount increases to $325 per adult ($162.50 per child under 18). In 2016, these figures increase to 2.5 percent of household income and $695 per adult ($347.50 per child under 18). After 2016, these figures increase with inflation. 

Information will be made available later about how you will account for the payment on your 2014 federal income tax return filed in 2015.

More Information

 

More detailed information about the individual shared responsibility provision is available in our Questions and Answers. The Department of the Treasury and the IRS have issued the following legal guidance related to the individual shared responsibility provision, including detailed examples of the payment calculation:

  • Final regulations on the individual shared responsibility provision.
  • Notice 2013-42, which provides transition relief from the individual shared responsibility provision for employees and their families who are eligible to enroll in employer-sponsored health plans with a plan year other than a calendar year if the plan year begins in 2013 and ends in 2014.
  • Proposed regulations on minimum essential coverage and other rules regarding the shared responsibility provision.
  • Notice 2014-10, which provides transition relief for individuals enrolled in coverage under certain limited-benefit Medicaid and TRICARE programs that are not minimum essential coverage.

Additional information on exemptions and minimum essential coverage is available in final regulations issued by the Department of Health & Human Services.

Page Last Reviewed or Updated: 25-Mar-2014

The Form 1040a

Form 1040a Index Symbols 28% rate gain, Collectibles (28% rate) gain. Form 1040a , Figuring 28% rate gain (line 11). Form 1040a A Adjustments to income, defined, Adjustment to income. Form 1040a Age 65 or older dependents, Both Earned and Unearned Income Aliens Individual taxpayer identification number (ITIN), Reminders Standard deduction, Standard Deduction of Zero Alternative minimum tax (AMT), Other Filing Requirements, Alternative minimum tax. Form 1040a , Alternative Minimum Tax Assistance (see Tax help) B Blind dependents, filing requirements, Both Earned and Unearned Income C Capital gain distributions, Capital gain distributions. Form 1040a Capital losses, Capital loss. Form 1040a Child's earnings, Child's earnings. Form 1040a Child's expenses, Child's expenses. Form 1040a Child's return Responsibility for, Should a Return Be Filed Even If Not Required?, Child's expenses. Form 1040a Child's unearned income Tax on, Renewing an exemption from withholding. Form 1040a Church, wages from, Other Filing Requirements Credits, reduced, Reduced deductions or credits. Form 1040a D Deductible investment interest, Deductible investment interest. Form 1040a Deductions, Deductions you cannot take. Form 1040a Deductions, reduced, Reduced deductions or credits. Form 1040a Dependents Exemption for, Standard Deduction of Zero Own exemption, Standard Deduction of Zero Social security numbers (SSNs) of, Reminders Divorced parents, reporting child's unearned income, Parents are divorced. Form 1040a E Earned income, Earned Income Only, Both Earned and Unearned Income Education credit, recaptured, Other Filing Requirements Election to include child's income on parent's return, Parent's Election To Report Child's Interest and Dividends, How to make the election. Form 1040a , Estimated tax, penalty, Penalty for underpayment of estimated tax. Form 1040a Exemption Own exemption — dependent, Dependent's Own Exemption Exemption from withholding, Claiming exemption from withholding. Form 1040a Extension of time to file, Extension of time to file. Form 1040a F Figures (see Tables and figures) Figuring child's income, Penalty for underpayment of estimated tax. Form 1040a Filing requirements, Part 1. Form 1040a Rules for All Dependents, Should a Return Be Filed Even If Not Required? Form 1040 Schedule A, Directly connected. Form 1040a Schedule J, Using Schedule J (Form 1040), for line 9 tax. Form 1040a , Using Schedule J for line 15 tax. Form 1040a Form 1040A Filled in example, Form 1099-DIV, Collectibles (28% rate) gain. Form 1040a Form 2555, Child files Form 2555 or 2555-EZ. Form 1040a , Parent files Form 2555 or 2555-EZ. Form 1040a , Child files Form 2555 or 2555-EZ. Form 1040a , Child files Form 2555 or 2555-EZ. Form 1040a , Child files Form 2555 or 2555-EZ. Form 1040a , Child files Form 2555 or 2555-EZ. Form 1040a Form 2555-EZ, Child files Form 2555 or 2555-EZ. Form 1040a , Parent files Form 2555 or 2555-EZ. Form 1040a , Child files Form 2555 or 2555-EZ. Form 1040a , Child files Form 2555 or 2555-EZ. Form 1040a , Child files Form 2555 or 2555-EZ. Form 1040a , Child files Form 2555 or 2555-EZ. Form 1040a Form 2848, Designated as representative. Form 1040a , How to request. Form 1040a Form 6251, Alternative minimum tax. Form 1040a , Limit on exemption amount (AMT). Form 1040a Form 8615, Providing Parental Information (Form 8615, Lines A–C), Line 18 (Tax) Filled in example, Form 8814, How to make the election. Form 1040a , Figuring Child's Income, Figuring Additional Tax Form W-4, Claiming exemption from withholding. Form 1040a Free tax services, Free help with your tax return. Form 1040a G Gift, income from property received as, Income from property received as a gift. Form 1040a H Help (see Tax help) I Individual taxpayer identification numbers (ITINs), Reminders Investment interest, Deductible investment interest. Form 1040a IRS notice sent to child, IRS notice. Form 1040a Itemized deductions Directly connected, Directly connected. Form 1040a J Joint return of parents, Which Parent's Return To Use L Life insurance, Other Filing Requirements Limit on exemption amount (AMT) Alternative Minimum Tax — Limit on exemption amount, Limit on exemption amount (AMT). Form 1040a M Married parents filing separately, Parents are married. Form 1040a Medicare tax, Other Filing Requirements Missing children, photographs of, Reminders N Net capital gain, Net capital gain. Form 1040a Net unearned income, Line 5 (Net Unearned Income) P Parents Election (see Election to include child's income on parent's return) Which parent's return to use, Which Parent's Return To Use Penalty, estimated tax, Penalty for underpayment of estimated tax. Form 1040a Publications (see Tax help) Q Qualified dividends, Qualified dividends. Form 1040a , Qualified dividends. Form 1040a R Recapture taxes, Other Filing Requirements Remarried custodial parent, reporting child's unearned income, Custodial parent remarried. Form 1040a Remarried widowed parent, reporting child's unearned income, Widowed parent remarried. Form 1040a Returns Filing even if not required, Should a Return Be Filed Even If Not Required? Parent's election to include child's income (see Election to include child's income on parent's return) Responsibility for child's return, Responsibility for Child's Return, Child's expenses. Form 1040a Signing child's return, Signing the child's return. Form 1040a Who must file, Filing Requirements, Should a Return Be Filed Even If Not Required? S Schedule D Tax Worksheet, Using the Schedule D Tax Worksheet for line 9 tax. Form 1040a , Figuring 28% rate gain (line 11). Form 1040a , Using the Schedule D Tax Worksheet for line 15 tax. Form 1040a Section 1202 gain, Section 1202 gain. Form 1040a Self-employed, filing requirements, Other Filing Requirements Separated parents, reporting child's unearned income, Parents not living together. Form 1040a Signing child's return, Signing the child's return. Form 1040a Social security numbers (SSNs) of dependents, Reminders Social security tax, Other Filing Requirements Standard deduction, Standard Deduction, Standard Deduction of Zero Worksheet for dependents (Worksheet 1), Worksheet 1. Form 1040a Zero, Standard Deduction of Zero T Tables and figures Determining whether Form 8615 is required (Figure 2), Election to include child's income on parent's return (Figure 1), Filing requirements for dependents (Table 1), Table 1. Form 1040a 2013 Filing Requirements for Dependents Tax help, How to request. Form 1040a , How To Get Tax Help Tax on child's unearned income, Renewing an exemption from withholding. Form 1040a Age requirement, Certain January 1 birthdays. Form 1040a Figured on Form 8615, Tax for Certain Children Who Have Unearned Income Third party designee, Third party designee. Form 1040a Tips not reported to employer, Other Filing Requirements Trust income, Trust income. Form 1040a TTY/TDD information, How To Get Tax Help U Unearned income, Unearned Income Only, Both Earned and Unearned Income Defined, Unearned income defined. Form 1040a Election to include child's income on parent's return (see Election to include child's income on parent's return) Tax on, Part 2. Form 1040a Tax on Unearned Income of Certain Children Unrecaptured section 1250 gain, Unrecaptured section 1250 gain. Form 1040a , Figuring unrecaptured section 1250 gain (line 11). Form 1040a W Withholding, Withholding From Wages Worksheets Dependent's filing requirement, Both Earned and Unearned Income Form 8615 alternate worksheet, Line 1 (Unearned Income) Qualified dividends and capital gain tax, Line 9 (Tax on Parent's Taxable Income Plus Children's Net Unearned Income) Schedule D Tax, Figuring 28% rate gain (line 11). Form 1040a Standard deduction worksheet for dependents (Worksheet 1), Worksheet 1. Form 1040a Unrecaptured section 1250 gain, Figuring unrecaptured section 1250 gain (line 11). Form 1040a Prev  Up     Home   More Online Publications