Groups Exempt from Penalty Tax

The following groups are not liable for the ACA penalty tax if they do not get adequate health insurance. The list does not include all groups who would not owe the tax.

1. Individuals with income below the income tax filing threshold
2. Individuals for whom the cost of getting health insurance (net of ACA subsidies) would exceed 8% of household income in 2014 (That percentage would rise in subsequent years if premium growth exceeds income growth.)
3. Individuals in states that did not accept the ACA’s Medicaid expansion who would have qualified for Medicaid under the expansion
4. Members of Indian tribes
5. Members of certain religious faiths
6. Members of a health care sharing ministry
7. Individuals not legally in the U.S. (undocumented aliens)
8. Incarcerated individuals

For further information, see pages 53651-53655 and 53659 of “Shared Responsibility Payment for Not Maintaining Minimum Essential Coverage” at http://www.gpo.gov/fdsys/pkg/FR-2013-08-30/pdf/2013-21157.pdf