No Health Coverage? What That 

Means for Your Taxes

You’ll answer a question about your 2016 health coverage when you file your federal income tax 

return. If you didn’t have qualifying health coverage (sometimes called “minimum essential coverage”) 

some or all of 2016, your taxes could be affected. Here are a few things to know:

You may pay a fee as part of your taxes if you didn’t have health coverage in 2016, 

and don’t get an exemption.

If you could’ve afforded health coverage in 2016 but chose not to buy it and you don’t qualify for an 

exemption, you may need to pay a fee with your federal tax return. The fee is based on your income, 

and how many months you didn’t have health coverage. Generally, the higher your income and the more 

months you were without health coverage, the higher the fee. 

• $695 per person who was without coverage for the year ($347.50 per child under 18). The maximum 

fee per family using this method is $2,085.

• An amount that varies depending on your income. It’s generally 2.5% of your yearly household 

income over a certain threshold.

Beginning in 2017, these amounts will be adjusted for inflation.

You don’t have to pay the fee if you get an exemption.

If you ask for and are approved for an exemption, you won’t have to pay a fee for not having health 

coverage. You might be able to get an exemption because of a special situation, like not having any 

affordable health insurance plans available to you, having only a short gap in coverage, or being eligible 

for services through the Indian Health Service. In addition, if you had coverage starting in May 2015 or 

earlier, you qualify for an exemption for the months before your coverage started.
There are 2 types of exemptions:

1. IRS exemptions that you can get from the IRS when you file your tax return. 

2. Marketplace exemptions that you’ll need to request by completing a paper application 

and mailing it to the Health Insurance Marketplace. 

For a complete list of exemptions and more information, visit HealthCare.gov/health-coverageexemptions or call the Marketplace Call Center at 1-800-318-2596. TTY users should call 1-855-889-4325.

If the Marketplace approves your exemption application, save the approval notice 

you get in the mail.

If you get an exemption from the Marketplace, you’ll get a notice in the mail that includes a unique 

Exemption Certificate Number (ECN). Keep this notice with other important tax documents. You’ll need 

to enter that ECN on your federal income tax return when you file your federal taxes for the year you 

didn’t have health coverage. If the ECN isn’t granted for the whole year, you may still have to pay a fee 

for some months. If you mailed an exemption application to the Marketplace and are still waiting for a 

decision when you file your tax return, follow the instructions with your tax return to enter “Pending” 

in the appropriate places. If you apply for the exemption directly from the IRS using Health Coverage 

Exemptions Form (Form 8965), you won’t need an ECN.

For more information:

nn For more information about how health coverage will affect your taxes, visit 

HealthCare.gov/taxes or call the Marketplace Call Center at 1-800-318-2596. 

n Many people who signed up for Marketplace coverage can get free help with filling out their 

taxes. This may include free access to tax software programs, or free in-person help. For more 

information, visit IRS.gov/freefile or IRS.gov/VITA.

n If you have general questions about your taxes, or want to learn more about the fee for not having 

health coverage, visit IRS.gov.

CMS Product No. 11886

Revised October 2016

You have the right to get the information in this product in an alternate format. You also have the right to file a complaint if you 

feel you’ve been discriminated against. Visit https://www.cms.gov/About-CMS/Agency-Information/Aboutwebsite/CMSNondiscriminationNotice.html, or call the Marketplace Call Center at 1-800-318-2596 for more information. TTY users should call 

1-855-889-4325.