Due to tax law changes, beginning Jan. 1, 2019, you'll no longer be required to have minimum essential health coverage.
When completing the Health Insurance section of the tax return, the entire household income is required. The Affordable Care Act (ACA) uses the income estimate to assess whether or not a taxpayer or their family qualifies for lower health insurance coverage from the Lower Costs Charts of the healthcare provision.
For most people, a household consists of the tax filer, their spouse (if applicable), and their tax dependents, including those who don’t need coverage. The Marketplace counts estimated income of all household members who are required to file a tax return.
The ACA allows young adults, up to the age of 26, to remain under the health insurance coverage of their parents. When listing the household income, the total Modified Adjusted Gross Income (MAGI), which can be found on line 7 of Form 1040 for the 2018 tax year and will be listed on line 8b of Form 1040 for the 2019 income tax return. It will be listed on line 11 of the 1040 for the 2020 tax year. If you have family members listed as dependents on the return and they file their own return, their income is to be included in the health insurance section as Dependents Modified AGI.
You will be required to subtract any Social Security Income (SSI) included in their AGI and add excluded foreign income, Tax-exempt interest, and Nontaxable Social Security benefits (including tier 1 railroad retirement benefits).
Based on the total household income and the size of the household, you may qualify for lower health coverage costs.
To find out if you qualify for lower health coverage costs, visit Healthcare.gov. The income limits change based on the state you live in and the number of people in your household.