There are four steps to using the estimator:
- The Tax Year,
- Your Information,
- Your Coverage, and
Complete the form for each step and click the "Next" button to continue to the next step. Use the navigation buttons on the left side of the estimator to return to any previous step.
The estimator starts by asking for the tax year. Certain figures used in determining the payment are indexed to inflation:
- The filing threshold
The amount of gross income an individual of your age and with your filing status must make to be required to file a tax return.
- The affordability threshold
For 2014, if the amount you must pay for annual premiums is more than 8% of your household income your coverage is considered unaffordable. This is indexed to inflation for 2015 and forward.
- The national average bronze plan premium
The national average premium for qualified health plans that have a bronze level of coverage, would provide coverage for your shared responsibility family members who do not have minimum essential coverage for the month, and are offered through Exchanges for plan years beginning in the calendar year with or within which the taxable year ends.
- The flat dollar amount
$95 in 2014,
$325 in 2015,
$695 in 2016, and
Indexed to inflation for 2017 and forward.
Because these figures are indexed to inflation, the estimator cannot provide a detailed estimate for future years.
Enter your information as you expect it to be for the year.
Whether you are a dependent of another taxpayer
If you qualify as a dependent of another taxpayer, only the person who is able to claim you as a dependent will be liable for the payment, if any. This is true even if the other person does not claim you on their return.
Your expected annual household income
Household income is the adjusted gross income from your tax return plus any excludible foreign earned income and tax-exempt interest you receive during the taxable year. Household income also includes the incomes of all of your dependents who are required to file tax returns.
Your filing status.
Select your expected filing status. Additionally, if you (and your spouse if married and filing a joint return) are 65 or older for the entire year, check the boxes indicating your ages.
The number of people in your family at the beginning of the year.
This includes yourself, your spouse, and your dependents.
If you gain or lose a family member in any month during the year, adjust your family size in the following step.
Begin by entering your family members' information at the beginning of the year. For for each family member, select whether:
Family member is under 18.
If you or a family member have not turned 18 before the end of the prior year, check the "Under 18" box for the family member in the "Coverage at start of year" section.
Family member has minimum essential coverage.
If the family member is covered under minimum essential coverage at the beginning of the year, check this box.
Exemption if not covered.
If the family member is not covered, select one exemption if it applies. If no exemption applies, select "None"
If you or a family member experiences a change to any of the above during the year, enter the change for that month.
- If a family member turns 18 during the year, enter the change for the month after their 18th birthday.
- A family member is considered to have coverage if the member is covered for at least one day of a month. Uncheck the "Covered" box only if a family member does not have coverage for the entire month.
If you gain or lose a family member on a day other than the first of a month during the year, adjust your family size by clicking the "Add" or "Remove" buttons for the following month. If the gain or loss is on the first of a month, make the change for that month.
If you are liable for the shared responsibility payment, this will show you a summary of the payment and how it was determined.
This estimator only provides an estimate of the shared responsibility payment. It does not calculate the actual payment that you may owe.
To determine and report you payment, you will need to complete Form 8965, Health Coverage Exemptions, and attach it to your return.