The Affordable Care Act contains comprehensive health insurance reforms. This law includes tax provisions that affect individuals and families, as well as businesses, insurers, tax-exempt organizations, and government entities.
For individuals, the law requires you and everyone on your return to report health care coverage or claim an exemption or make a payment with your return. Most lawfully present Americans face paying a penalty when they file their taxes if they did not enroll in health insurance the previous year.
The ACA also contains benefits and responsibilities for other organizations, including employers. One of these benefits is the Small Business Health Care Tax Credit, which was included in the law to make coverage more affordable for small business owners.
Our fact sheet explains the Shared Responsibility Payment and details what you will pay if you don’t enroll in health insurance before the Open Enrollment deadline.
Lawmakers designed the tax credits for small businesses to help reduce the cost of health care for employers with employees earning low to moderate wages.
