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12686: 1040 - Shared Responsibility Payment (ACA)


Fed Returns Generally

How is the Shared Responsibility Payment calculated?

The Affordable Care Act requires each person to have minimum essential health coverage for each month, qualify for an exemption, or make a shared responsibility payment when filing their 1040 return. If a taxpayer does not have basic health insurance coverage or qualify for an exemption, the shared responsibility payment, also known as a penalty for being uninsured, is required to be included on the taxpayer's 1040 return for that year.

Note: In tax year 2018, the checkbox to indicate full coverage or an available exemption is located on revised Form 1040, page 1. The individual responsibility payment amount will show on Schedule 4 Other Taxes, line 61. The Tax Cuts and Jobs Act has eliminated the shared responsibility payment starting with taxable years after December 31, 2018. 

The IRS page Individual Shared Responsibility Provision -- Reporting and Calculating the Payment explains:

If you have to make a payment, you can use the worksheets located in the instructions for Form 8965Health Coverage Exemptions, to figure the shared responsibility payment amount due.  


The annual payment amount is either a percentage of your household income in excess of the return filing threshold or a flat dollar amount, whichever is greater.  If you have coverage or an exemption for only part of the year, you will prorate your payment for an amount less than the annual payment. The amount you will have to pay may be limited depending on your circumstances.

    2014 - 2018
    Annual Payment Amounts
    Year 2014 Year 2015 Years 2016-2018
    Percentage amount 1% of income above filing threshold*
    2% of income above filing threshold*
    2.5% of income above filing threshold*
    Flat dollar amount** $95 per adult
    $325 per adult
    $695 per adult
    $47.50 per child
    $162.50 per child
    $347.50 per child
    Family maximum: $285
    Family maximum: $975
    Family maximum: $2,085
    Your payment amount is capped at the cost of the national average premium for a bronze level health plan available through the Marketplace. For 2017, the annual national average premium for a bronze level health plan available through the Marketplace is $3,264 per year ($272 per month) for an individual and $16,320 per year ($1,360 per month) for a family with five or more members.
    * Filing Threshold: The minimum amount of gross income an individual of your age and with your filing status (e.g., single, married filing jointly, head of household) must make to be required to file a tax return..
    **After year 2016, the flat dollar amounts are based on the 2016 amounts plus an inflation adjustment.
For more information about the shared responsibility payment, see:

In Drake14 and Drake16, check boxes were added on the HC - General Health Coverage Information screen to opt-out of the Shared Responsibility Payment, if the penalty would have otherwise been owed. 

Note: ​If the taxpayer chooses not to have Drake calculate the Shared Responsibility Payment, the IMPORTANT note should be read to the taxpayer to explain the possible consequences of submitting a return without the penalty present.

Note: In Drake15, Drake17, and Drake18 there is no place to "opt out" of the Shared Responsibility Payment calculation that may be due. Repayment is required if Minimum Essential Coverage was not obtained by any member of the household where an exemption is not allowed.

Where does line 13 of the WK_89651 (Shared Responsibility Payment Worksheet) come from?

In 2017, the amount on line 13 of Wks 89651 of $272 represents the national average premium for a Bronze level health plan that is available through the Marketplace for one individual.  This amount should not be changed.

There is a note to that effect on the bottom of the worksheet, which is taken from page 16 of the Instructions for Form 8965.

Note:$223 was the amount listed for 2016. $207 was the amount listed for 2015. $204 was the amount listed for 2014.


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