Form 8965 Checklist for 2015 Health Coverage Exemptions

health insurance requirements under the Affordable Care Act for the 2015 tax year. U.S. citizens and resident aliens use this form when they or members of their tax household lacked qualifying health insurance for one or more months during 2015.

Understanding Your Tax Household and Filing

Requirements

Your tax household includes yourself, your spouse if filing jointly, and any individual you claim as a dependent on your 2015 tax return. The tax household definition follows IRS dependency rules rather than the Affordable Care Act provision that allows children to remain on parents' insurance until age 26.

You must determine whether anyone you are claiming on your 2015 return lacked minimum essential coverage for any month in 2015. Non-filing households that meet the income exemption do not need to file a return solely to claim the exemption.

Form 8965 Structure and Organization

The 2015 Form 8965 maintains the same three-part structure used in 2014. Part I reports

Marketplace-granted exemptions using lines 1 through 6, Part II contains two yes/no questions on lines 7a and 7b for household-level exemptions, and Part III uses lines 8 through 13 to report individual exemptions with month-by-month detail.

Reporting Household-Level Exemptions in Part II

Part II serves taxpayers who qualify for exemptions based on household or gross income below the filing thresholds. Line 7a asks whether your household income is below the filing threshold for your filing status, while line 7b asks whether your gross income falls below that same threshold. Checking "Yes" to either question exempts everyone in your tax household for the entire year. You do not need to complete Part III when you claim a household-level exemption in

Part II.

Documenting Individual Exemptions by Month in Part III

Part III allows you to report exemptions for specific individuals during specific months of 2015.

You must enter the individual's name in column (a), Social Security number in column (b), and exemption type code in column (c). Columns (d) through (p) represent each calendar month or a full-year designation. Complete a separate line for each individual claiming an exemption. When claiming more than one exemption type for the same individual, you generally must complete a separate line for each exemption type.

Hardship Exemption Categories and Documentation

The 2015 instructions list specific hardship exemption categories

• Domestic violence
• Bankruptcy
• Homelessness
• Eviction or facing eviction
• Utility shutoff notice or shutoff
• Fire or natural disaster damage
• Death of a close family member
• Unexpected increases in necessary expenses or income reduction

Self-certification is permitted for most hardship exemptions, and you must retain supporting documentation, but do not attach it to your tax return. Different household members may experience hardships at different times, and each exemption requires proper documentation using the appropriate code in Part III, column (c).

Calculating Affordability Using 2015 Thresholds

For 2015, coverage affordability is measured using an applicable percentage of 8.05 percent of household income. Federal guidance from the Department of Health and Human Services set a

national average bronze plan premium that serves as the safe harbor threshold for that year, replacing figures used in 2014.

When completing affordability calculations, rely exclusively on federal rate tables published for the 2015 tax year. Safe harbor amounts from 2014 or earlier years cannot be used when preparing a 2015 Form 8965.

Reconciling Coverage Information with IRS Forms

You may receive different forms documenting your 2015 health insurance status. Form 1095-A comes from the Health Insurance Marketplace and contains information needed to complete

Form 8962 for the premium tax credit, while insurance providers outside the exchange or government programs send Form 1095-B showing health coverage.

Form 8965 reports coverage exemptions rather than coverage itself. If you received advance premium tax credits through the Marketplace, you must reconcile those payments using Form

8962, not Form 8965.

Determining Household Size for Exemption Calculations

Count yourself, your spouse if filing jointly, and all claimed dependents when calculating household size for Form 8965 purposes. Do not include dependent children you can claim but choose not to claim on your 2015 tax return. Recalculate household size when dependents are born, die, or become legally adopted during 2015. An individual counts as part of your tax household only for the whole months they are alive.

Key Changes and Clarifications for 2015

The 2015 instructions removed prior-year safe harbor amounts and established new

2015-specific thresholds based on the national average bronze plan premium. The instructions expanded the language to address Form 1095-A coordination and Marketplace reporting requirements unique to the 2015 tax year. The line structure and numbering remained unchanged from 2014. Foster children and stepchildren meeting the 2015 relationship and residency tests must be included in your tax household.

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