IRS releases form and instructions for health care coverage exemption

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Contact: Jared King
Communications Director
Navajo Nation Washington Office
Cell: 202-200-0625
Desk: 202-682-7390

For Immediate Release

IRS releases form and instructions for health care coverage exemption

WASHINGTON—The Internal Revenue Service has released the final version of the form and instructions that may be used to report or claim the exemption for American Indians, Alaska Natives and other individuals who are eligible to receive services from an Indian Health Care provider. 

Form 8965 may now be used to report a coverage exemption granted by the marketplace or to claim a coverage exemption on an individual tax return.

“Unless they qualify for an exemption, everyone must have had health insurance in 2014 or else they will have to pay the shared responsibility. Enrolled citizens of the Navajo Nation qualify for the exemption – it is a lifetime exemption – but they must apply for it,” said Carolyn Drouin, government and legislative affairs associate at the Navajo Nation Washington Office.

The exemption can be applied for in one of two ways: through the marketplace, or by claiming the exemption on their 2014 tax return filings. “If they applied through the marketplace, they would need to have their exemption number when working on their tax return so it can be reported," said Drouin.

In addition, if for any month a member of a tax household had neither health care coverage nor a coverage exemption (non-IHS eligible individuals), these instructions provide the information necessary to calculate the individual shared responsibility payment.