Exemption information if you had a gap in health coverage

Was there a short gap of time during which you did not have health coverage? You may be

eligible for an exemption from the requirement to have health coverage for that period.

The Affordable Care Act is making health insurance more affordable, helping more people get

covered, and improving the quality of care that millions of Americans receive. Under the

Affordable Care Act, everyone who can afford to is now required by law to have health

coverage. If you can afford health coverage but chose not to buy it, you may have to pay a fee.

However, those who can’t afford coverage or meet other conditions may qualify for an

exemption. If you qualify, receiving an exemption is simple and easy, and means you won’t

have to pay a fee.

It is important for individuals to know that exemptions are available and to understand the steps

they need to take to request one. If you were uninsured for a short period of time, you may

qualify for an exemption from the requirement to have health coverage.

What is a “Short Gap” in Coverage?

A “short gap” means you were uninsured for a period of less than three consecutive months

during the year. Note that if you have coverage for even one day of a month, you’re considered

to have had coverage for that full month. For example, if you lacked coverage from March 2

until June 15, but had coverage directly before and after that, you’re considered covered for

March and June, and had a coverage gap of two months – April and May – so you would qualify

for the short coverage gap exemption.

If you have more than one short coverage gap during the year, you may only claim this

exemption for the first short coverage gap in the year. If you have another coverage gap later in

the year (for example, October and November), you cannot claim the short coverage gap for the

second period.

This exemption is only for periods of time that are less than three consecutive months. If your

gap in coverage was three months or longer in a row, then none of the months in that period

qualify for this exemption. For example, if you lack coverage from March 2 until August 15,

you do not qualify for an exemption for any of those months.

How to Claim a Short Gap in Coverage

You can claim your exemption for a short gap in health coverage on your tax return when you

file. The process is fast and easy. You’ll simply select the exemption that applies to you and

enter the corresponding code. For this exemption, it will be “Short Coverage Gap,” which is

code B.

If you have questions about how to apply for an exemption, visit the Internal Revenue Service

webpage on exemptions, available here. It’s important to note that filing electronically is the

easiest way to file a complete and accurate tax return. Last year, approximately 85 percent of