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Amendment 1040x

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Amendment 1040x

Amendment 1040x Index A Abatement of interest and penalties, Abatement of interest and penalties. Amendment 1040x Accidents, Deductible losses. Amendment 1040x , Nondeductible losses. Amendment 1040x Adjusted basis, Adjusted Basis Adjustments to basis, Basis adjustment to corporation's property. Amendment 1040x , Adjustments to Basis Amended returns, Amended return. Amendment 1040x Appraisals, Appraisal. Amendment 1040x , Costs of photographs and appraisals. Amendment 1040x Assistance (see Tax help) B Bad debts, Nonbusiness bad debt. Amendment 1040x Basis Adjusted, Adjusted Basis Adjustments to, Basis adjustment to corporation's property. Amendment 1040x , Adjustments to Basis Replacement property, Basis of replacement property. Amendment 1040x Business or income-producing property, Business or income-producing property. Amendment 1040x Business purposes, property used partly for, Property used partly for business and partly for personal purposes. Amendment 1040x C Cars Accidents, Deductible losses. Amendment 1040x Fair market value of, Car value. Amendment 1040x Cash gifts, Cash gifts. Amendment 1040x Casualty losses, Table 3. Amendment 1040x When To Deduct a Casualty or Theft Loss Deductible losses, Deductible losses. Amendment 1040x Definition, Casualty Deposits, loss on, Casualty loss or ordinary loss. Amendment 1040x Nondeductible losses, Nondeductible losses. Amendment 1040x Progressive deterioration, Progressive deterioration. Amendment 1040x Proof of, Casualty loss proof. Amendment 1040x When to report, Losses. Amendment 1040x Workbooks for listing property, Workbooks for casualties and thefts. Amendment 1040x Clean up costs, Cost of cleaning up or making repairs. Amendment 1040x Condemnation, Condemnations. Amendment 1040x Corrosive drywall, Special Procedure for Damage From Corrosive Drywall Costs Appraisals, Costs of photographs and appraisals. Amendment 1040x Clean up, Cost of cleaning up or making repairs. Amendment 1040x Incidental expenses, Related expenses. Amendment 1040x Landscaping, Landscaping. Amendment 1040x Photographs taken after loss, Costs of photographs and appraisals. Amendment 1040x Protection, Cost of protection. Amendment 1040x Repair, Cost of cleaning up or making repairs. Amendment 1040x Replacement, Replacement cost. Amendment 1040x D Death of taxpayer Postponement of gain, Death of a taxpayer. Amendment 1040x Deductible losses, Deductible losses. Amendment 1040x Deduction limits, Deduction Limits $100 rule, $100 Rule 10% rule, 10% Rule 2% rule, 2% Rule Deposit losses, Mislaid or lost property. Amendment 1040x , Table 3. Amendment 1040x When To Deduct a Casualty or Theft Loss Reporting of (Table 1), Table 1. Amendment 1040x Reporting Loss on Deposits When to report, Loss on deposits. Amendment 1040x Disaster area losses, Lessee's loss. Amendment 1040x Claiming on amended return, Claiming a disaster loss on an amended return. Amendment 1040x Federal loan canceled, Federal loan canceled. Amendment 1040x Federally declared disaster, Business or income-producing property located in a federally declared disaster area. Amendment 1040x , Disaster Area Losses Figuring loss deduction, Figuring the loss deduction. Amendment 1040x Form 1040X, How to report the loss on Form 1040X. Amendment 1040x Home made unsafe, Home made unsafe by disaster. Amendment 1040x How to deduct loss in preceding year, How to deduct your loss in the preceding year. Amendment 1040x Inventory, Disaster loss to inventory. Amendment 1040x Main home rules, Main home in disaster area. Amendment 1040x , Gains. Amendment 1040x Qualified disaster mitigation payments, Qualified disaster mitigation payments. Amendment 1040x Qualified disaster relief payments, Qualified disaster relief payments. Amendment 1040x Records to keep, Records. Amendment 1040x Tax deadlines postponed, Covered disaster area. Amendment 1040x When to deduct, When to deduct the loss. Amendment 1040x Table 3, Table 3. Amendment 1040x When To Deduct a Casualty or Theft Loss Disaster mitigation payments, Qualified disaster mitigation payments. Amendment 1040x Disaster relief grants, Disaster relief. Amendment 1040x Drywall, corrosive, Special Procedure for Damage From Corrosive Drywall Due dates Tax deadlines postponed, Postponed Tax Deadlines E Employer's emergency disaster fund, Employer's emergency disaster fund. Amendment 1040x F Fair market value (FMV) Decline in value of property in or near casualty area, Decline in market value of property in or near casualty area. Amendment 1040x Measuring decrease in, Decrease in Fair Market Value Items not to consider, Figuring Decrease in FMV — Items Not To Consider Items to consider, Figuring Decrease in FMV — Items To Consider Federal disaster relief grants, Federal disaster relief grants. Amendment 1040x Federal Emergency Management Agency (FEMA), contacting, Contacting the Federal Emergency Management Agency (FEMA) Federally declared disasters, Business or income-producing property located in a federally declared disaster area. Amendment 1040x , Disaster Area Losses Figuring gain, Property used partly for business and partly for personal purposes. Amendment 1040x Figuring loss, Theft loss proof. Amendment 1040x , Figuring the Deduction Adjusted basis, Adjusted Basis Disaster area losses, Figuring the loss deduction. Amendment 1040x Insurance and other reimbursements, Insurance and Other Reimbursements Form 1040, Schedule A, Personal-use property. Amendment 1040x Form 1040, Schedule D, Personal-use property. Amendment 1040x Form 1040X Disaster area losses, How to report the loss on Form 1040X. Amendment 1040x Form 4684 Reporting gains and losses on personal-use property, Personal-use property. Amendment 1040x Free tax services, Free help with your tax return. Amendment 1040x G Gains Figuring, Figuring a Gain Postponement of, Postponement of Gain, How To Postpone a Gain Reimbursements, Gain from reimbursement. Amendment 1040x Reporting of, Contacting the Federal Emergency Management Agency (FEMA) When to report, Changing your mind. Amendment 1040x H Help (see Tax help) I Incidental expenses, Related expenses. Amendment 1040x Insurance, Insurance and Other Reimbursements Living expenses, payments for, Insurance payments for living expenses. Amendment 1040x Interest abatement, Abatement of interest and penalties. Amendment 1040x Inventory losses, Loss of inventory. Amendment 1040x Disaster area losses, Disaster loss to inventory. Amendment 1040x L Landscaping, Landscaping. Amendment 1040x Leased property, Leased property. Amendment 1040x When to report, Lessee's loss. Amendment 1040x Losses Casualty (see Casualty losses) Deposits (see Deposit losses) Disaster areas (see Disaster area losses) Figuring amount (see Figuring loss) Proof of, Deducted loss recovered. Amendment 1040x Records of, Theft loss proof. Amendment 1040x Reporting of, Contacting the Federal Emergency Management Agency (FEMA) Theft (see Theft losses) When to report, Changing your mind. Amendment 1040x (Table 3), Table 3. Amendment 1040x When To Deduct a Casualty or Theft Loss M Married taxpayers Deduction limits, Married taxpayers. Amendment 1040x , Married taxpayers. Amendment 1040x Mislaid or lost property, Mislaid or lost property. Amendment 1040x Missing children, photographs of, Reminders N Nonbusiness bad debts, Nonbusiness bad debt. Amendment 1040x Nondeductible losses, Nondeductible losses. Amendment 1040x P Payments for living expenses, Insurance payments for living expenses. Amendment 1040x Penalty abatement, Abatement of interest and penalties. Amendment 1040x Personal property Loss deduction, figuring of, Personal property. Amendment 1040x Personal-use property Reporting gains and losses, Personal-use property. Amendment 1040x Personal-use real property, Exception for personal-use real property. Amendment 1040x Photographs Documentation of loss, Costs of photographs and appraisals. Amendment 1040x Ponzi-type investment schemes, Losses from Ponzi-type investment schemes. Amendment 1040x Postponed tax deadlines, Postponed Tax Deadlines Postponement of gain, Postponement of Gain, How To Postpone a Gain Amended return, Amended return. Amendment 1040x Changing mind, Changing your mind. Amendment 1040x Replacement property acquired after return filed, Replacement property acquired after return filed. Amendment 1040x Replacement property acquired before return filed, Replacement property acquired before return filed. Amendment 1040x Required statement, Required statement. Amendment 1040x Substituting replacement property, Substituting replacement property. Amendment 1040x Three-year limit, Three-year limit. Amendment 1040x Proof of loss, Proof of Loss Protection costs, Cost of protection. Amendment 1040x Publications (see Tax help) R Records of loss, Theft loss proof. Amendment 1040x Recovered stolen property, Recovered stolen property. Amendment 1040x Reimbursements Cash gifts, Cash gifts. Amendment 1040x Disaster relief, Disaster relief. Amendment 1040x Employer's emergency disaster fund, Employer's emergency disaster fund. Amendment 1040x Failure to file a claim, Failure to file a claim for reimbursement. Amendment 1040x Received after deducting loss, Reimbursement Received After Deducting Loss Types of, Types of Reimbursements Related expenses, Related expenses. Amendment 1040x Related person, replacement property bought from, Buying replacement property from a related person. Amendment 1040x Repair costs, Cost of cleaning up or making repairs. Amendment 1040x Replacement cost, Replacement cost. Amendment 1040x Replacement period, Replacement Period Extension of, Extension. Amendment 1040x Replacement property, Replacement Property Advance payment, Advance payment. Amendment 1040x Basis adjustment to corporation's property, Basis adjustment to corporation's property. Amendment 1040x Basis of, Basis of replacement property. Amendment 1040x Main home, Main home replaced. Amendment 1040x In disaster area, Main home in disaster area. Amendment 1040x Postponement of gain, Replacement property acquired before return filed. Amendment 1040x Reporting gains and losses, Reporting a gain. Amendment 1040x , How To Report Gains and Losses Basis, adjustments to, Adjustments to Basis Business and income-producing property, Business and income-producing property. Amendment 1040x Deductions exceeding income, If Deductions Are More Than Income Deposits, How to report. Amendment 1040x Table 1, Table 1. Amendment 1040x Reporting Loss on Deposits Disaster area losses, How to report the loss on Form 1040X. Amendment 1040x Personal-use property, Personal-use property. Amendment 1040x Timing of, When To Report Gains and Losses S Sentimental value, Sentimental value. Amendment 1040x State disaster relief grants for businesses, State disaster relief grants for businesses. Amendment 1040x Stolen property (see Theft losses) T Tables and figures Reporting loss on deposits (Table 1), Table 1. Amendment 1040x Reporting Loss on Deposits When to deduct losses (Table 3), Table 3. Amendment 1040x When To Deduct a Casualty or Theft Loss Tax help, How To Get Tax Help Theft losses, Theft FMV of stolen property, FMV of stolen property. Amendment 1040x Mislaid or lost property, Mislaid or lost property. Amendment 1040x Proof of, Theft loss proof. Amendment 1040x When to deduct (Table 3), Table 3. Amendment 1040x When To Deduct a Casualty or Theft Loss When to report, Losses. Amendment 1040x Workbooks for listing property, Workbooks for casualties and thefts. Amendment 1040x Timber loss, Timber loss. Amendment 1040x W Workbooks for property lost due to casualties and thefts, Workbooks for casualties and thefts. Amendment 1040x Prev  Up     Home   More Online Publications
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Questions and Answers on the Individual Shared Responsibility Provision


Basic Information

1. What is the individual shared responsibility provision?

Under the Affordable Care Act, the federal government, state governments, insurers, employers and individuals are given shared responsibility to reform and improve the availability, quality and affordability of health insurance coverage in the United States. Starting in 2014, the individual shared responsibility provision calls for each individual to have minimum essential health coverage (known as minimum essential coverage) for each month, qualify for an exemption, or make a payment when filing his or her federal income tax return.

2. Who is subject to the individual shared responsibility provision?

The provision applies to individuals of all ages, including children. The adult or married couple who can claim a child or another individual as a dependent for federal income tax purposes is responsible for making the payment if the dependent does not have coverage or an exemption.

3. When does the individual shared responsibility provision go into effect?

The provision goes into effect on Jan. 1, 2014. It applies to each month in the calendar year. 

4.  Is transition relief available in certain circumstances?

Yes. Notice 2013-42, published on June 26, 2013, provides transition relief from the shared responsibility payment for individuals who are eligible to enroll in eligible employer-sponsored health plans with a plan year other than a calendar year (non-calendar year plans) if the plan year begins in 2013 and ends in 2014 (2013-2014 plan year). The transition relief applies to an employee, or an individual having a relationship to the employee. The transition relief begins in January 2014 and continues through the month in which the 2013-2014 plan year ends.

In addition, Notice 2014-10, published on Jan. 23, 2014, provides transition relief for individuals covered under certain limited-benefit government-sponsored programs. Coverage under these programs is not minimum essential coverage unless it is designated as such by the Department of Health and Human Services. Under Notice 2014-10, individuals who have coverage under these government-sponsored programs will not be held liable for the shared responsibility payment for months in 2014 when they have that coverage. The specific government-sponsored programs are optional family planning coverage of family services under title XIX of the Social Security Act, optional coverage of tuberculosis-related services under title XIX of the Social Security Act, coverage of pregnancy-related services under title XIX of the Social Security Act, coverage limited to treatment of emergency medical conditions (in accordance with section 1611(b)(12)(A) of title 8 of the United States Code) under title XIX of the Social Security Act, coverage for medically needy individuals under title XIX of the Social Security Act, coverage authorized under section 1115(a)(2) of the Social Security Act, limited-benefit TRICARE coverage of space available care provided under chapter 55 of title 10 of the United States Code and limited-benefit TRICARE coverage of line of duty care under chapter 55 of title 10 of the United States Code.  

5. What counts as minimum essential coverage?

Minimum essential coverage includes the following:

  • Employer-sponsored coverage, including self-insured plans, COBRA coverage and retiree coverage
  • Coverage purchased in the individual market, including a qualified health plan offered by the Health Insurance Marketplace 
  • Medicare Part A coverage and Medicare Advantage plans
  • Most Medicaid coverage
  • Children's Health Insurance Program (CHIP) coverage
  • Certain types of veterans health coverage administered by the Veterans Administration
  • Most types of TRICARE coverage under chapter 55 of title 10 of the United States Code
  • Coverage provided to Peace Corps volunteers
  • Coverage under the Nonappropriated Fund Health Benefit Program
  • Refugee Medical Assistance supported by the Administration for Children and Families
  • Self-funded health coverage offered to students by universities for plan or policy years that begin on or before Dec. 31, 2014 (for later plan or policy years, sponsors of these programs may apply to HHS to be recognized as minimum essential coverage)
  • State high risk pools for plan or policy years that begin on or before Dec. 31, 2014 (for later plan or policy years, sponsors of these program may apply to HHS to be recognized as minimum essential coverage)
  • Other coverage recognized by the Secretary of HHS as minimum essential coverage

Minimum essential coverage does not include coverage providing only limited benefits, such as the following:

  • Coverage consisting solely of excepted benefits, such as:
    • Stand-alone vision care or dental care
    • Workers' compensation
    • Accident or disability policies
  • Medicaid providing only family planning services
  • Medicaid providing only tuberculosis-related services
  • Medicaid providing only coverage limited to treatment of emergency medical conditions
  •  Pregnancy-related Medicaid coverage*
  • Medicaid coverage for the medically needy*
  • Section 1115 Medicaid demonstration projects*
  • Space available TRICARE coverage provided under chapter 55 of title 10 of the United States Code for individuals who are not eligible for TRICARE coverage for health care services from private sector providers*
  • Line of duty TRICARE coverage provided under chapter 55 of title 10 of the United States Code*

* These categories of coverage are generally not minimum essential coverage. However, to the extent that certain programs within these categories provide comprehensive coverage, the Secretary of HHS may recognize these programs as minimum essential coverage in the future. The IRS in Notice 2014-10 announced relief from the shared responsibility payment for months in 2014 in which individuals are covered under any of these programs to the extent that they are not minimum essential coverage. Information will be made available later about how the income tax return will take account of coverage under one of these programs. 

6. What are the statutory exemptions from the requirement to obtain minimum essential coverage?

  1. Religious conscience. You are a member of a religious sect that is recognized as conscientiously opposed to accepting any insurance benefits. The Social Security Administration administers the process for recognizing these sects according to the criteria in the law.
  2. Health care sharing ministry. You are a member of a recognized health care sharing ministry.
  3. Indian tribes. You are (1) a member of a federally recognized Indian tribe or (2) an individual eligible for services through an Indian care provider.
  4. Income below the income tax return filing requirement. Your income is below the minimum threshold for filing a tax return. The requirement to file a federal tax return depends on your filing status, age and types and amounts of income. To find out if you are required to file a federal tax return, use the IRS Interactive Tax Assistant (ITA).
  5. Short coverage gap. You went without coverage for less than three consecutive months during the year. For more information, see question 22.
  6. Hardship. You have suffered a hardship that makes you unable to obtain coverage, as defined in final regulations issued by the Department of Health and Human Services. See question 21 for more information on claiming hardship exemptions..
  7. Affordability. You can’t afford coverage because the minimum amount you must pay for the premiums is more than eight percent of your household income.
  8. Incarceration. You are in a jail, prison, or similar penal institution or correctional facility after the disposition of charges against you.
  9. Not lawfully present. You are not a U.S. citizen, a U.S. national or an alien lawfully present in the U.S.

7. What do I need to do if I want to be sure I have minimum essential coverage or an exemption for 2014?

The vast majority of coverage that people have today counts as minimum essential coverage. For those who do not have coverage, who anticipate discontinuing the coverage they have currently, or who want to explore whether more affordable options are available, the Health Insurance Marketplace is open in every state and the District of Columbia. The Marketplace helps individuals compare available coverage options, assess their eligibility for financial assistance and find minimum essential coverage that fits their budget.

For those seeking an exemption from the individual responsibility provision, the Marketplace is able to provide certificates of exemption for many of the exemption categories. HHS has issued final regulations on how the Health Insurance Marketplace grants these exemptions. Individuals will also be able to claim certain exemptions for 2014 when they file their federal income tax returns in 2015. Individuals who are not required to file a federal income tax return because their gross income falls below the return filing threshold do not need to take any further action to secure an exemption. See question 21 for further information on how to claim an exemption.

For more information about the Marketplace, visit the Health Insurance Marketplace website. For more information about financial assistance, see our Questions and Answers on the premium tax credit.

8. Is more detailed information available about the individual shared responsibility provision?

Yes. The Treasury Department and the IRS have issued final regulations on the new individual shared responsibility provision, and the IRS has created an individual shared responsibility page. In addition, the Treasury Department and the IRS have issued proposed regulations, which provide guidance on additional issues that were identified in the preamble to the final regulations. Additional information on exemptions and minimum essential coverage is available in final regulations issued by the Department of Health and Human Services and in a Shared Responsibility Provision Question and Answer issued by the Centers for Medicare & Medicaid Services

Who is Affected?

9. Are children subject to the individual shared responsibility provision?

Yes. Each child must have minimum essential coverage or qualify for an exemption for each month in the calendar year. Otherwise, the adult or married couple who can claim the child as a dependent for federal income tax purposes will generally owe a shared responsibility payment for the child..

10. Are senior citizens subject to the individual shared responsibility provision?

Yes. Senior citizens must have minimum essential coverage or qualify for an exemption for each month in a calendar year. Both Medicare Part A and Medicare Part C (also known as Medicare Advantage) qualify as minimum essential coverage.  

11. Are all individuals living in the United States subject to the individual shared responsibility provision?

All U.S. citizens living in the United States are subject to the individual shared responsibility provision as are all permanent residents and all foreign nationals who are in the United States long enough during a calendar year to qualify as resident aliens for tax purposes. Foreign nationals who live in the United States for a short enough period that they do not become resident aliens for federal income tax purposes are not subject to the individual shared responsibility payment even though they may have to file a U.S. income tax return. The IRS has more information available on when a foreign national becomes a resident alien for federal income tax purposes.

12. Are US citizens living abroad subject to the individual shared responsibility provision?

Yes. However, U.S. citizens who are not physically present in the United States for at least 330 full days within a 12-month period are treated as having minimum essential coverage for that 12-month period. In addition, U.S. citizens who are bona fide residents of a foreign country (or countries) for an entire taxable year are treated as having minimum essential coverage for that year. In general, these are individuals who qualify for a foreign earned income exclusion under section 911 of the Internal Revenue Code. Individuals may qualify for this rule even if they cannot use the exclusion for all of their foreign earned income because, for example, they are employees of the United States. Individuals that qualify for this rule need take no further action to comply with the individual shared responsibility provision during the months when they qualify. See Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad, for further information on the foreign earned income exclusion.  

U.S. citizens who meet neither the physical presence nor residency requirements will need to maintain minimum essential coverage, qualify for an exemption or make a shared responsibility payment for each month of the year. For this purpose, minimum essential coverage includes a group health plan provided by an overseas employer. One exemption that may be particularly relevant to U.S. citizens living abroad for a small part of a year is the exemption for a short coverage gap. This exemption provides that no shared responsibility payment will be due for a once-per-year gap in coverage that lasts less than three months.  

13. Are residents of the territories subject to the individual shared responsibility provision?

All bona fide residents of the United States territories are treated by law as having minimum essential coverage. They are not required to take any action to comply with the individual shared responsibility provision.

Minimum Essential Coverage

14. If I receive my coverage from my spouse’s employer, will I have minimum essential coverage?

Yes. Employer-sponsored coverage is generally minimum essential coverage. (See question 5 for information on specialized types of coverage that are not minimum essential coverage.) If an employee enrolls in employer-sponsored coverage that provides minimum value for himself and his family, the employee and all of the covered family members have minimum essential coverage.

15. Do my spouse and dependent children have to be covered under the same policy or plan that covers me?

No. You, your spouse and your dependent children do not have to be covered under the same policy or plan. However, you, your spouse and each dependent child for whom you may claim a personal exemption on your federal income tax return must have minimum essential coverage or qualify for an exemption, or you will owe a shared responsibility payment when you file a return.

16. My employer tells me that our company’s health plan is “grandfathered.” Does my employer’s plan provide minimum essential coverage?

Yes. Grandfathered group health plans provide minimum essential coverage.

17. I am a retiree, and I am too young to be eligible for Medicare. I receive my health coverage through a retiree plan made available by my former employer. Is the retiree plan minimum essential coverage?

Yes. Retiree health plans are generally minimum essential coverage.

18. I work for a local government that provides me with health coverage. Is my coverage minimum essential coverage?

Yes. Employer-sponsored coverage is minimum essential coverage regardless of whether the employer is a governmental, nonprofit or for-profit entity.

19. Do I have to be covered for an entire calendar month to avoid the shared responsibility payment liability for not having minimum essential coverage for that month?

No. You will be treated as having minimum essential coverage for a month as long as you have coverage for at least one day during that month.

20. If I change health coverage during the year and end up with a gap when I am not covered, will I owe a payment?

Individuals are treated as having minimum essential coverage for a calendar month if they have coverage for at least one day during that month. Additionally, as long as the gap in coverage is less than three months, you may qualify for an exemption and not owe a payment. See question 22 for more information on the exemption for a short coverage gap.

Exemptions

21. If I think I qualify for an exemption, how do I obtain it?

It depends upon the exemption for which you qualify.

  • The religious conscience exemption and most hardship exemptions are available only by going to the Health Insurance Marketplace and applying for an exemption certificate. Information on obtaining these exemptions is available in final rules issued by the Department of Health and Human Services.
  • The exemptions for members of federally recognized Indian tribes, members of health care sharing ministries and individuals who are incarcerated are available either by going to a Marketplace or Exchange and applying for an exemption certificate or by claiming the exemption as part of filing a federal income tax return.
  • The exemptions for lack of affordable coverage, a short coverage gap, certain hardships, household income below the filing threshold and individuals who are not lawfully present in the United States may be claimed only as part of filing a federal income tax return.

22. What qualifies as a short coverage gap?

In general, a gap in coverage that lasts less than three months qualifies as a short coverage gap. If an individual has more than one short coverage gap during a year, the short coverage gap exemption only applies to the first gap.

23. If my income is so low that I am not required to file a federal income tax return, do I need to do anything special to claim an exemption from the individual shared responsibility provision?

No. If you are not required to file a federal income tax return for a year because your gross income is below your return filing threshold, you are automatically exempt from the shared responsibility provision for that year and do not need to take any further action to secure an exemption. If you are not required to file a tax return for a year but file one anyway, you will be able to claim the exemption on your tax return.

24. If I am exempt from the shared responsibility payment, can I still be eligible for the premium tax credit?

In many cases, yes, but it depends upon the exemption. If you are exempt because you are incarcerated or because you are not lawfully present in the United States, you are not eligible to enroll in a qualified health plan through the Marketplace and therefore cannot claim a premium tax credit. However, individuals with other types of exemptions may obtain coverage through the Marketplace and claim a premium tax credit if they otherwise qualify for the credit.

Reporting Coverage or Exemptions or Making Payments

25. Will I have to do something on my federal income tax return to show that I had coverage or an exemption?

The individual shared responsibility provision goes into effect in 2014. You will not have to account for coverage or exemptions or to make any payments until you file your 2014 federal income tax return in 2015. Information will be made available later about how the income tax return will take account of coverage and exemptions. Insurers will be required to provide everyone that they cover each year with information that will help them demonstrate they had coverage beginning with the 2015 tax year.

26. What happens if I do not have minimum essential coverage or an exemption, and I cannot afford to make the shared responsibility payment when filing my tax return?

The IRS routinely works with taxpayers who owe amounts they cannot afford to pay. The law prohibits the IRS from using liens or levies to collect any individual shared responsibility payment. However, if you owe a shared responsibility payment, the IRS may offset that liability against any tax refund that may be due to you.

Page Last Reviewed or Updated: 25-Mar-2014

The Amendment 1040x

Amendment 1040x Publication 550 - Introductory Material Table of Contents Future Developments What's New Reminders IntroductionOrdering forms and publications. Amendment 1040x Tax questions. Amendment 1040x Future Developments For the latest information about developments related to Publication 550, such as legislation enacted after it was published, go to www. Amendment 1040x irs. Amendment 1040x gov/pub550. Amendment 1040x What's New Net investment income tax (NIIT). Amendment 1040x  Beginning in 2013, you may be subject to the NIIT. Amendment 1040x The NIIT applies at a rate of 3. Amendment 1040x 8% to certain net investment income of individuals, estates, and trusts that have income above statutory threshold amounts. Amendment 1040x See Net investment income tax (NIIT) , later. Amendment 1040x Maximum capital gain rates. Amendment 1040x  For 2013, the maximum capital gain rates are 0%, 15%, 20%, 25%, and 28%. Amendment 1040x See Capital Gain Tax Rates , later, for more information. Amendment 1040x Gift tax exclusion amount increased. Amendment 1040x  For calendar year 2013, the first $14,000 of gifts to any person (other than gifts of future interests in property) are not included in the total amount of taxable gifts. Amendment 1040x See Property Received as a Gift , later. Amendment 1040x Reminders Mutual fund distributions. Amendment 1040x  Publication 564, Mutual Fund Distributions, has been incorporated into this publication. Amendment 1040x Foreign source income. Amendment 1040x  If you are a U. Amendment 1040x S. Amendment 1040x citizen with investment income from sources outside the United States (foreign income), you must report that income on your tax return unless it is exempt by U. Amendment 1040x S. Amendment 1040x law. Amendment 1040x This is true whether you reside inside or outside the United States and whether or not you receive a Form 1099 from the foreign payer. Amendment 1040x Employee stock options. Amendment 1040x  If you received an option to buy or sell stock or other property as payment for your services, see Publication 525, Taxable and Nontaxable Income, for the special tax rules that apply. Amendment 1040x Photographs of missing children. Amendment 1040x  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Amendment 1040x Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Amendment 1040x You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Amendment 1040x Introduction This publication provides information on the tax treatment of investment income and expenses. Amendment 1040x It includes information on the tax treatment of investment income and expenses for individual shareholders of mutual funds or other regulated investment companies, such as money market funds. Amendment 1040x It explains what investment income is taxable and what investment expenses are deductible. Amendment 1040x It explains when and how to show these items on your tax return. Amendment 1040x It also explains how to determine and report gains and losses on the disposition of investment property and provides information on property trades and tax shelters. Amendment 1040x The glossary at the end of this publication defines many of the terms used. Amendment 1040x Investment income. Amendment 1040x   This generally includes interest, dividends, capital gains, and other types of distributions including mutual fund distributions. Amendment 1040x Investment expenses. Amendment 1040x   These include interest paid or incurred to acquire investment property and expenses to manage or collect income from investment property. Amendment 1040x Qualified retirement plans and IRAs. Amendment 1040x   The rules in this publication do not apply to mutual fund shares held in individual retirement arrangements (IRAs), section 401(k) plans, and other qualified retirement plans. Amendment 1040x The value of the mutual fund shares and earnings allocated to you are included in your retirement plan assets and stay tax free generally until the plan distributes them to you. Amendment 1040x The tax rules that apply to retirement plan distributions are explained in the following publications. Amendment 1040x Publication 560, Retirement Plans for Small Business. Amendment 1040x Publication 571, Tax-Sheltered Annuity Plans. Amendment 1040x Publication 575, Pension and Annuity Income. Amendment 1040x Publication 590, Individual Retirement Arrangements (IRAs). Amendment 1040x Publication 721, Tax Guide to U. Amendment 1040x S. Amendment 1040x Civil Service Retirement Benefits. Amendment 1040x    Comments and suggestions. Amendment 1040x   We welcome your comments about this publication and your suggestions for future editions. Amendment 1040x   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Amendment 1040x NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Amendment 1040x Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Amendment 1040x   You can send your comments from www. Amendment 1040x irs. Amendment 1040x gov/formspubs/. Amendment 1040x Click on “More Information” and then on “Comment on Tax Forms and Publications. Amendment 1040x ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Amendment 1040x Ordering forms and publications. Amendment 1040x   Visit www. Amendment 1040x irs. Amendment 1040x gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. Amendment 1040x Internal Revenue Service 1201 N. Amendment 1040x Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Amendment 1040x   If you have a tax question, check the information available on IRS. Amendment 1040x gov or call 1-800-829-1040. Amendment 1040x We cannot answer tax questions sent to either of the above addresses. Amendment 1040x Prev  Up  Next   Home   More Online Publications