Massachusetts requires most residents age 18 and older to maintain health insurance that meets the state's Minimum Creditable Coverage (MCC) requirements. If you did not have qualifying health coverage for all or part of the year, you may qualify for an exemption that prevents or reduces a Schedule HC penalty.
Program Entry
Massachusetts Return → Health Care Information (Schedule HC)
Exemption Types
Religious Exemption
You may qualify for a religious exemption if you have sincerely held religious beliefs that prevent you from obtaining health insurance.
When claiming a religious exemption, Massachusetts will also ask whether you received medical health care during the tax year.
Certificate of Exemption
You may qualify for a Certificate of Exemption if the Massachusetts Health Connector determined that you qualified for an exemption from the health insurance requirement.
If approved, the Health Connector will issue a certificate number that must be reported on Schedule HC.
Affordability Exemption
You may qualify for an affordability exemption if health insurance was considered unaffordable based on your household income and available coverage options.
To determine eligibility, Massachusetts considers:
- Employer-sponsored health insurance
- Government-subsidized health insurance
- Private health insurance available through the Massachusetts Health Connector or private insurance marketplace
Do I Need Approval Before Claiming an Exemption?
Religious Exemption
No. A religious exemption does not require advance approval from the Massachusetts Health Connector.
Certificate of Exemption
Yes. A Certificate of Exemption must be obtained from the Massachusetts Health Connector before it can be reported on Schedule HC. If approved, the Connector will provide a certificate number.
Affordability Exemption
No separate approval is generally required. The affordability questions on Schedule HC are used to determine whether an exemption may apply based on the taxpayer's circumstances.
What Is the Tax Penalty Appeal Question?
Do You Wish to Appeal the Tax Penalty?
This question applies when a taxpayer may be subject to a Schedule HC penalty for failing to maintain qualifying health insurance coverage.
A taxpayer may request that Massachusetts review the circumstances surrounding the coverage gap and determine whether the penalty should be waived or reduced.
Examples of circumstances that may support an appeal include:
- Financial hardship
- Circumstances beyond the taxpayer's control
- Other situations that prevented the taxpayer from obtaining qualifying health coverage
Selecting Yes does not automatically remove the penalty. The Massachusetts Department of Revenue will review the information and determine whether relief is appropriate.
Notes
- Most Massachusetts residents age 18 and older are required to maintain health insurance that meets Minimum Creditable Coverage (MCC) requirements.
- Exemption questions only need to be completed if qualifying coverage was not maintained for the entire year.
- A Certificate of Exemption requires approval from the Massachusetts Health Connector.
- Taxpayers should keep copies of any exemption certificates, Health Connector correspondence, and Forms MA 1099-HC.
- The existence of an exemption does not automatically remove all penalties. Eligibility requirements must be met and documented when required.