Under DC law, residents must have qualifying health insurance coverage, qualify for an exemption, or pay a Shared Responsibility Payment (tax penalty). When completing Schedule HSR, you may be asked whether you qualify for a health coverage exemption.
Religious Belief Exemption
This exemption applies to individuals who, for the entire tax year, were unable to obtain qualifying health coverage because of a sincerely held religious belief.
Generally, this exemption is intended for individuals whose religious beliefs are opposed to accepting medical care or health insurance coverage. The exemption must apply throughout the tax year.
Other Than Religious Belief Exemption
This option applies when a taxpayer qualifies for a health coverage exemption for a reason other than a religious belief.
Common qualifying exemptions include:
- Affordability – Health insurance coverage was considered unaffordable.
- Short Coverage Gap – The taxpayer was without coverage for less than three consecutive months.
- Citizens Abroad and Certain Noncitizens – The taxpayer qualified under special residency or citizenship rules.
- Health Care Sharing Ministry Membership – The taxpayer was a member of a qualifying health care sharing ministry.
- Indian Tribe Membership – The taxpayer was a member of a federally recognized tribe or qualified Alaska Native.
- Incarceration – The taxpayer was incarcerated during the applicable period.
- General Hardship – The taxpayer qualified for a hardship exemption.
- Birth or Adoption During the Year – A member of the household was born or adopted during the tax year.
- Death During the Year – A member of the household passed away during the tax year.
- Nonresident of DC – The individual was not a DC resident.
- DC Health Alliance Participation – The individual was enrolled in the DC Health Alliance Program.
- Low Income – The taxpayer's income fell below the applicable threshold for the year.
- Religious Sect Exemption – The taxpayer belonged to a qualifying religious sect recognized under DC rules.
Additional Information
- Exemptions are determined separately for each member of the tax household.
- If an exemption applies for only part of the year, the exemption may be limited to the months it applies.
- Supporting documentation may be required if requested by the District of Columbia.