How Irs Form 13844 Penalties 2025

The Centers for Medicare and Medicaid Services have issued new guidance on hardship exemptions from having insurance. This guidance was released on September 12th and it makes it easier for taxpayers to claim a hardship exemption. The guidance specifically applies to the coverage year of 2018 and does not extend into 2019. According to the guidance, if you did not have coverage in 2018, when you file your taxes in 2019, you could be subject to a penalty for being uninsured. However, you can claim a hardship exemption on your taxes without needing proof or verification of the hardship. You can simply state that you were uninsured and either choose to pay the tax penalty or claim an exemption for hardship. Hardships refer to financial situations or other circumstances that prevent someone from obtaining health insurance. Under the Affordable Care Act, if you are without health insurance for more than three months during the coverage year, you face a tax penalty for being uninsured. However, certain hardships can excuse you from this penalty. These hardships fall into 14 categories, including homelessness, eviction, domestic violence, and bankruptcy. In April 2018, the administration broadened the range of hardship exemptions, aiming to make the process more generous. The new guidance issued on September 12th further expands these exemptions. This aligns with the administration's overall efforts to chip away at the individual mandate. It is crucial to note that the GOP tax bill, which eliminates the penalty for not having insurance, does not take effect until the coverage year 2019. Therefore, this guidance only applies to those uninsured in 2018. The intent behind these changes is to gradually diminish the individual mandate and remove penalties for being uninsured. Policy experts have expressed concerns that this could lead to healthier individuals opting out of insurance, which may subsequently increase premiums...