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The Individual Shared Responsibility Provision

Posted by Matt Evans Posted on Dec 12 2014

On May 27, 2014, the IRS released clarifying information on how the Individual Shared Responsibility Provision is to work under the Affordable Care Act. The individual shared responsibility provision requires you and each member of your family have either of the following:

 

  • Have minimum essential coverage, or
  • Have an exemption from the responsibility to have minimum essential coverage, or
  • Make a shared responsibility payment when you file your 2014 federal income tax return. (This is the penalty for not having minimum essential coverage health insurance. For 2014, the penalty is the greater of $95.00 or 1% of your household income.)

This blog is published to provide you with an informative summary of current business, financial, and tax planning opportunities.  Do not apply this general information to your specific situation without additional details.  Be aware that the tax laws contain varying effective dates and numerous limitations and exceptions that can not be summarized easily.  For details and guidance in applying the tax rules to your specific circumstances, please contact us.