Instructions For Form 8965 - Health Coverage Exemptions

1095-A by early February 2018 and the Form 1095-B or 1095-C

Marketplace. A Marketplace, or Health Insurance Marketplace

by early March 2018, if applicable. For more information on

(also referred to as an “Exchange”), is a governmental agency or

these forms, see the instructions for Form 1040, line 61; Form

nonprofit entity that makes qualified health plans available to in-

1040A, line 38; or Form 1040EZ, line 11. The

Types of Minimum

dividuals and grants certain coverage exemptions. The term

Essential Coverage

chart provides more information about the

“Marketplace” refers to state Marketplaces, regional Marketpla-

plans and arrangements that are minimum essential coverage.

ces, subsidiary Marketplaces, and the Federally-facilitated Mar-

ketplace.

Timing. You are considered to have minimum essential cov-

Minimum essential coverage. Minimum essential coverage is

erage for a month if you have it for at least 1 day during that

health coverage that satisfies the requirement for individuals to

month. For example, if you start a new job on June 26 and are

have health coverage. Minimum essential coverage generally in-

covered under your employer’s plan starting on that day, you are

cludes coverage under a government-sponsored program, cov-

treated as having coverage for the entire month of June.

erage from your employer, and coverage under certain plans

Foreign coverage. In general, coverage provided by a for-

that you buy in the individual market. If you, or a member of your

eign employer to its employees and related individuals is mini-

family, had minimum essential coverage in 2017, the entity that

mum essential coverage. Individuals with such coverage should

provided the coverage is required to send you a Form 1095-A,

see Pub. 974, Premium Tax Credit (PTC) for more information

Form 1095-B, or 1095-C that lists individuals in your family who

on which coverage provided by a foreign employer is minimum

were enrolled in minimum essential coverage and shows their

essential coverage. However, coverage that an individual pur-

months of coverage. Individuals enrolled in a qualified health

chases directly from a foreign health insurance issuer or that is

plan through the Marketplace generally receive this information

provided by the government of a foreign country doesn't qualify

on Form 1095-A, Health Insurance Marketplace Statement. Indi-

as minimum essential coverage unless it is recognized as mini-

viduals enrolled in health insurance coverage outside the Mar-

mum essential coverage by the Department of Health and Hu-

ketplace, in a government-sponsored program, or in certain oth-

man Services (HHS). To find out if HHS has recognized particu-

er coverage generally receive this information on Form 1095-B,

lar forms of foreign coverage as minimum essential coverage, go

Health Coverage. Individuals enrolled in employer-sponsored

coverage generally receive this information on either Form

Insurance-Market-Reforms/minimum-essential-coverage.html,

1095-B or on Part III of Form 1095-C, Employer-Provided Health

and scroll down and click on the link for the list of approved

Insurance Offer and Coverage. You should receive the Form

plans.

Filing Requirements for Children and Other Dependents

Use this chart to help you determine if a dependent you claimed on your return must file his or her own tax return. If the dependent

is required to file a tax return because his or her income meets the filing threshold, the dependent's MAGI must be included in

household income for purposes of Form 8965, even if you elect to report that dependent's income on Form 8814. Don’t include a

dependent's MAGI in household income if the dependent's income is below the filing threshold, even if he or she chooses to file a

return for another reason.

In this chart, unearned income includes taxable interest, ordinary dividends, capital gain distributions, unemployment

compensation, taxable social security benefits, pensions, annuities, and distributions of unearned income from a trust. Earned

TIP

income includes salaries, wages, tips, professional fees, and taxable scholarship and fellowship grants. Gross income is the total

of your unearned and earned income.

Single dependents. Was your dependent either age 65 or older or blind?

No. Your dependent must file a return if any of the following apply.

His or her unearned income was over $1,050.

His or her earned income was over $6,350.

His or her gross income was more than the larger of—

$1,050, or

His or her earned income (up to $6,000) plus $350.

Yes. Your dependent must file a return if any of the following apply.

His or her unearned income was over $2,600 ($4,150 if 65 or older and blind).

His or her earned income was over $7,900 ($9,450 if 65 or older and blind).

His or her gross income was more than the larger of—

$2,600 ($4,150 if 65 or older and blind), or

His or her earned income (up to $6,000) plus $1,900 ($3,450 if 65 or older and blind).

Married dependents. Was your dependent either age 65 or older or blind?

No.Your dependent must file a return if any of the following apply.

His or her unearned income was over $1,050.

His or her earned income was over $6,350.

His or her gross income was at least $5 and his or her spouse files a separate return and itemizes deductions.

His or her gross income was more than the larger of—

$1,050, or

His or her earned income (up to $6,000) plus $350.

Yes. Your dependent must file a return if any of the following apply.

His or her unearned income was over $2,300 ($3,550 if 65 or older and blind).

His or her earned income was over $7,600 ($8,850 if 65 or older and blind).

His or her gross income was at least $5 and his or her spouse files a separate return and itemizes deductions.

His or her gross income was more than the larger of—

$2,300 ($3,550 if 65 or older and blind), or

His or her earned income (up to $6,000) plus $1,600 ($2,850 if 65 or older and blind).

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Instructions For Form 8965 - Health Coverage Exemptions - 2016 Page 4

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