Schedule HSR (Health Care Shared Responsibility Schedule) is used to report health insurance coverage information for the taxpayer, spouse, and dependents on a Washington, DC tax return.
Under DC law, residents are required to maintain qualifying health insurance coverage, qualify for an exemption, or pay a Shared Responsibility Payment (tax penalty) when filing their tax return.
What Is the Shared Responsibility Payment?
The Shared Responsibility Payment is a tax penalty that may apply when a taxpayer or a member of their household does not have qualifying health insurance coverage and does not qualify for an exemption.
Most taxpayers will either:
- Have qualifying health insurance coverage.
- Qualify for an exemption.
- Be subject to the Shared Responsibility Payment.
Pathway to this entry is: DC Return > Health Care Information - Schedule HSR > Did you and, if applicable, all members of your health care shared responsibility family, have qualifying health coverage for every month in the tax year?
What Is Qualifying Health Coverage for DC?
Qualifying health coverage generally includes health plans that provide a broad range of medical benefits and meet DC's minimum coverage requirements. Examples include:
- Employer-sponsored health insurance plans
- Health insurance purchased through DC Health Link
- Medicare
- Medicaid
- U.S. Department of Veterans Affairs (VA) coverage
- Other plans that meet the requirements for minimum essential coverage
Generally, limited-benefit plans, such as vision-only, dental-only, hospital-only, or short-term limited-duration plans, do not qualify as minimum essential coverage.
What Is Reported on Schedule HSR?
Schedule HSR is used to:
- Report health insurance coverage for each member of the tax household.
- Report months without qualifying health coverage.
- Claim health coverage exemptions, if applicable.
- Calculate any Shared Responsibility Payment due.
Who Must Complete Schedule HSR?
Schedule HSR should be completed by DC taxpayers who:
- Need to report health insurance coverage.
- Need to claim a health coverage exemption.
- May be subject to the Shared Responsibility Payment due to a lack of qualifying coverage.
Additional Notes
- Most DC residents have qualifying health insurance coverage and will not owe a Shared Responsibility Payment.
- The taxpayer is responsible for determining whether their health plan meets DC's coverage requirements. If unsure, contact the insurance provider to confirm whether the plan qualifies as minimum essential coverage.
- Information entered on Schedule HSR helps determine whether the taxpayer has met DC's health insurance coverage requirements for the year.