Sep 21 2018

Hardship Exemptions from Individual Mandate Can Now Be Claimed on Tax Returns

Policy Effective for Tax Year 2018

The Centers for Medicare and Medicaid Services (CMS) has announced that individuals will be able to claim hardship exemptions from the Affordable Care Act’s individual mandate for tax year 2018 on their 2018 federal income tax return. Previously, individuals were only permitted to claim these exemptions on their federal income tax return if first approved by the Health Insurance Marketplace. In addition, individuals claiming a hardship exemption will no longer be required to present documentary evidence or provide a written explanation of their hardship upon claiming the exemption.

Among other things, individuals are generally eligible to claim a hardship exemption for any month before, during, or after he or she:

  • Experienced a fire, flood, or other natural or human-caused disaster;
  • Filed for bankruptcy; or
  • Had unpaid medical expenses that resulted in substantial debt.

For more information, please read theĀ CMS announcement.