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HEALTH INSURANCE INDIVIDUAL MANDATE; PERSONAL INCOME TAX RETURN REQUIREMENTS

Essentially, this is telling you that if you have a federal penalty for not having required insurance coverage, you will receive a credit toward the Massachusetts penalty so that you will not be penalized twice.

Status:  Final Regulation;  Promulgation Date November 7, 2014.
Tax Type:  Personal Income Tax

Summary:  The regulation amends the Department’s regulation at 830 CMR 111.M.2.1, pertaining to the MA health insurance individual mandate.  Beginning January 1, 2014, the federal Affordable Care Act instituted a nation-wide mandate on individuals to obtain health insurance.  For tax years beginning on or after January 1, 2014, if a nonexempt individual fails to obtain health insurance meeting federal standards, the person is liable for a penalty termed the “shared responsibility payment” that must be reported on his or her federal income tax return.  The amendments to the regulation are found in sections 1 and 5 of the regulation, and provide guidance on the interaction of the MA individual mandate with the federal mandate to obtain health insurance. In particular, these amendments would create a credit against any MA health care penalty owed for the amount of any federal health care penalty, so as to prevent a pyramiding of the penalties. In addition, there is a technical correction to section 7.


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