New Jersey requires most residents and members of their tax household to maintain Minimum Essential Coverage (MEC), also referred to as qualifying health insurance coverage, throughout the year.
Schedule NJ-HCC is used to report health coverage information, claim exemptions from the coverage requirement, and calculate any Shared Responsibility Payment that may apply.
Program Entry
New Jersey Return → Tax → Health Care Coverage (Schedule NJ-HCC)
What Is Minimum Essential Coverage (MEC)?
Minimum Essential Coverage (MEC) is the level of health insurance coverage required under New Jersey law.
Examples of qualifying coverage include:
- Health plans purchased through the Health Insurance Marketplace
- Individual health insurance plans purchased directly from an insurer that meet federal requirements
- Most employer-sponsored health insurance plans
- COBRA coverage
- Medicare Part A
- Most Medicaid coverage
- Children's Health Insurance Program (CHIP)
- Coverage under a parent's health insurance plan
- Most student health insurance plans
- Certain Veterans Affairs (VA) health coverage
- Most TRICARE plans
- Refugee Medical Assistance coverage
Did You and All Members of Your Tax Household Have Qualifying Coverage for Every Month During the Tax Year?
Yes
Select Yes if you and every member of your tax household had Minimum Essential Coverage for all twelve months of the year.
If you answer Yes, no additional health coverage information is generally required.
No
Select No if:
- You did not have qualifying health insurance coverage for part of the year; or
- Someone in your tax household did not have qualifying health insurance coverage for part of the year.
If you answer No, you must complete the additional health coverage entries provided for each household member.
What Is a Tax Household?
For New Jersey purposes, a tax household includes:
- The taxpayer
- The spouse, if filing jointly
- A domestic partner claimed on the return
- Any dependents claimed on the New Jersey return
- Individuals who could be claimed as dependents, even if they are not claimed
New Jersey reviews coverage for all members of the tax household when determining compliance with the health coverage requirement.
Individual Health Coverage for Individuals Claimed on the Federal Return
Select Begin to enter health coverage information for individuals claimed on the federal return.
Information entered may include:
- Months covered by qualifying health insurance
- Months without coverage
- Applicable exemption information
Complete a separate record for each individual as needed.
Individual Health Coverage for Individuals NOT Claimed on the Federal Return
Select Begin to enter health coverage information for members of the tax household who are not claimed on the federal return.
This section is generally used when an individual is part of the New Jersey tax household but is not listed as a federal dependent.
What Happens If I Do Not Have Coverage?
If a member of your tax household does not have Minimum Essential Coverage and does not qualify for an exemption, New Jersey may assess a Shared Responsibility Payment.
The Shared Responsibility Payment is calculated based on information reported on Schedule NJ-HCC and is added to your New Jersey tax liability.
Common Exceptions to the Coverage Requirement
Some taxpayers may qualify for an exemption from the health coverage requirement.
Common exemptions include:
Short Coverage Gap
You may qualify if you were uninsured for a brief period during the year and meet New Jersey's requirements for a short coverage gap.
Income Below the Filing Threshold
A Shared Responsibility Payment is generally not due if income falls below the applicable New Jersey filing thresholds.
Certain Hardships
You may qualify for an exemption if circumstances prevented you from obtaining coverage.
Examples may include:
- Homelessness
- Eviction or foreclosure
- Domestic violence
- Bankruptcy
- Substantial financial hardship
Religious Conscience Exemption
Members of certain recognized religious groups may qualify for an exemption.
Membership in Certain Health Care Sharing Ministries
Individuals participating in qualifying health care sharing ministries may qualify for an exemption.
Incarceration
Certain periods of incarceration may qualify for an exemption.
Not Lawfully Present
Individuals who are not lawfully present in the United States may qualify for an exemption from the coverage requirement.
How Does This Affect My Return?
Schedule NJ-HCC may:
- Verify compliance with New Jersey's health coverage requirements.
- Determine whether an exemption applies.
- Calculate a Shared Responsibility Payment when applicable.
- Increase the amount of tax due if coverage requirements were not met and no exemption applies.